The preparation before applying for Social Security Retirement Benefits is important. You have to gathers your document so you can apply for this fund properly. Anyway, applying for this fund is not the hardest part so don’t mind it too seriously at first. Meet the requirements and you can get the money.
When you are eligible for Social Security retirements benefits? This is the first question you need to answer. You have to earns 40 credits so you can get this fund. How you can get this 40 credits? 40 credits is equal to 10 years of working. This is the duration that can guarantee you to get Social Security fund. No matter how old you are, if you don’t work for 10 years long you are not eligible for the money.
The money you get when you are retired depends on how many you earned during your working years. If you retired on your full retirement age, you can get full money based on what you got during your working years. For example, if you retire at age 62, your benefit would be about 25 percent lower than what it would be if you waited until you reach full retirement age. So you must consider on when you should retire.
Social Security will replaces about 40% of the money you earned on your pre retirement age, however the financial expert estimate that most people will need 70-80 percent of their pre retirement income so they can feel financially safe.
To draw full retirement benefits, the following Social Security Administration age rules apply:
1. Born in 1937 or earlier – Full retirement can be drawn at age 65
2. Born in 1938 – Full retirement can be drawn at age 65 years and 2 months
3. Born in 1939 — Full retirement can be drawn at age 65 years and 4 months
4. Born in 1940 — Full retirement can be drawn at age 65 years and 6 months
5. Born in 1941 — Full retirement can be drawn at age 65 years and 8 months
6. Born in 1942 — Full retirement can be drawn at age 65 years and 10 months
7. Born in 1943-1954 — Full retirement can be drawn at age 66
8. Born in 1955 – Full retirement can be drawn at age 66 and 2 months
9. Born in 1956 — Full retirement can be drawn at age 66 and 4 months
10. Born in 1957 — Full retirement can be drawn at age 66 and 6 months
11. Born in 1958 — Full retirement can be drawn at age 66 and 8 months
12. Born in 1959 — Full retirement can be drawn at age 66 and 10 months
13. Born in 1960 or later — Full retirement can be drawn at age 67
You are eligible for medicare at age 65 and Social Security will add 8 percent per year to your benefit for each year that you delay signing up for Social Security beyond your full retirement age. So, it is more profitable when you delays your retirement.
There is also Social security disability benefit for those who have to retire due to health problem. The amount of the disability benefit is the same as a full, unreduced retirement benefit. However, If you are receiving Social Security disability benefits when you reach full retirement age, those benefits will be converted to retirement benefits.
Reference: usgovinfo.about.com/od/socialsecurity/a/socsecapply.htm