Social Security Retirement Benefits
Social Security benefits are a major source of retirement income for most people. Here are some important things you need to know.
Published Tuesday, March 15, 2016 to Advice
Your Social Security retirement benefit is based on the number of years you’ve been working and the amount you’ve earned. The age at which you begin taking Social Security benefits also greatly affects the amount of your benefit.
How do you qualify?
When you work and pay Social Security taxes (FICA on some pay stubs), you earn Social Security credits. You can earn up to 4 credits each year. If you were born after 1928, you need 40 credits (10 years of work) to be eligible for retirement benefits.
How much will your Social Security retirement benefit be?
The Social Security Administration (SSA) calculates your primary insurance amount (PIA), upon which your retirement benefit will be based, using a formula that takes into account your 35 highest earnings years. At your full retirement age, you’ll be entitled to receive your PIA. This is known as your full retirement benefit.
Full retirement age.
Your full retirement age depends on the year in which you were born. If you begin receiving Social Security benefits at full retirement age, you’ll receive an unreduced retirement benefit.
| If you were born in: | Your full retirement age is: |
|---|---|
| 1943 - 1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or Later | 67 |
When should I apply?
According to the Social Security Administration, you should apply for Social Security retirement benefits approximately three months before you want your benefit to start. To apply for Social Security benefits, you can fill out an application online or call or visit your local Social Security office.
For more information on planning for retirement, attend one of our Social Security Seminars, or contact one of the professionals at Veridian Investment & Trust Services.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA / SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-1441002.1-0316-0418
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2015.