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Understanding the ins and outs of Social Safety’s many guidelines round claims will enable you to make the perfect selections when accessing retirement advantages.
However a current MassMutual ballot given to folks close to or already in retirement reveals that many have some brushing as much as do on this system’s guidelines.
The 13-question true/false quiz was given to 1,500 people ages 55 via 65.
Most did poorly: Virtually two-thirds, 65%, both failed or obtained a D grade. In the meantime, 18% of respondents earned a C, whereas 12% obtained a B and 6% earned an A. Simply 1% of respondents obtained an ideal rating.
Claiming Social Safety advantages is one among two large time-sensitive selections folks near retirement should make, in response to David Freitag, a monetary planning advisor and Social Safety skilled at MassMutual. The opposite is how they’ll acquire medical insurance protection.
“There are particular guidelines, particular deadlines and particular dates that must be met,” Freitag mentioned. “Or you may uncover after the truth that that oversight was very expensive, for those who’re not cautious.”
One factor to contemplate is the quantity of advantages you could obtain based mostly in your age. For most individuals approaching retirement now, age 67 is when they’ll obtain their full advantages based mostly on their earnings historical past. In the event that they delay as much as age 70, their month-to-month checks might be even larger.
There are different issues based mostly in your private scenario, notably when you have a partner or kids who may additionally profit out of your claiming choice.
To take the quiz, reply whether or not every of the next statements is true or false. Then examine your responses towards the important thing under.
Should you discover you have to brush up on Social Safety’s guidelines, the agency’s website is a good place to begin, Freitag mentioned. MassMutual additionally has additional information that will help you kind via your choices.
- Usually, if I take advantages earlier than my full retirement age, they are going to be diminished for early submitting.
- If I’m receiving advantages earlier than my full retirement age and proceed to work, my advantages is likely to be diminished based mostly on how a lot I make.
- If I’ve a partner, she or he can obtain advantages from my report even when she or he has no particular person earnings historical past.
- If I’ve a partner and she or he passes away, I’ll obtain each my full profit and my deceased partner’s full profit.
- Usually, if I’m in a same-sex marriage, there are totally different eligibility necessities relating to Social Safety retirement advantages.
- The cash that comes out of my paycheck for Social Safety goes into a particular account for me and stays there, incomes curiosity, till I start to obtain Social Safety advantages.
- Below present legislation, Social Safety advantages could possibly be diminished by 20% or extra for everybody by 2035.
- If I file for retirement advantages and have dependent kids aged 18 or youthful, in addition they could qualify for Social Safety advantages.
- If I get divorced, I’d have the ability to gather Social Safety advantages based mostly on my ex-spouse’s Social Safety earnings historical past.
- Below present Social Safety legislation, full retirement age is 65 regardless of if you had been born.
- If I delay taking Social Safety advantages previous the age of 70, I’ll proceed to get delayed retirement credit score will increase annually I wait.
- Social Safety retirement advantages are subject to income tax similar to withdrawals from a standard particular person retirement account.
- I have to be a U.S. citizen to gather Social Safety retirement advantages.
- True (89% of respondents answered this accurately)
- True (82%)
- True (72%)
- False (68%)
- False (65%)
- False (62%)
- True (60%)
- True (58%)
- True (57%)
- False (56%)
- False (49%)
- False (42%)
- False (24%)