Social Security and Federal Retirement

When it comes to the details surrounding your Social Security retirement benefits, it can seem a bit confusing, especially in terms of understanding and receiving the amount you are qualified to receive. By taking the time to understand the average retirement check for the current year, maximum earnings, work record, full retirement age, and more, you will be well-equipped to receive your Social Security benefits to their fullest.

There are many ways in which you can rest assured you are receiving the most out of your Social Security check each month. For example, many individuals are misinformed regarding how crucial it is to receive Social Security payments at the right age, claim proper benefits on a spouse’s work record, and continue working past the earliest retirement age available (depending on your age).

The age at which you choose to retire has a significant influence on your overall benefits, even in terms of spousal eligibility. For example, if the wife chooses to retire early on, it will impact her spousal benefit at whatever point her husband retires in the future. However, suppose she waits until reaching full retirement age. In that case, she will be eligible to receive half of the full Social Security benefit the spouse qualifies to receive or her benefit (depending on which is higher).

In this example, the highest possible amount the wife was eligible to receive at full retirement age is subtracted from half of her husband’s benefit. However, this amount is a bit higher than the benefit she has received, considering she opted for early retirement at age 62. The current amount she receives will increase by the sum calculated from half of her husband’s benefit, providing a new monthly benefit. Had she chosen to retire at her full retirement age, the wife could have received a higher monthly payment, further highlighting the importance of avoiding early retirement when possible.

Although age 62 is the earliest you can begin receiving Social Security benefits, there are many reasons to put it off until reaching full retirement age. Depending on the year you were born, the full retirement age may be somewhere between 65 to 67. Health problems are one of the main concerns for those who choose to retire early, among other conditions. This further enables those with a limited lifespan to enjoy time with their loved ones while they still can. Consequences of early retirement often include penalty taxes and significantly lowered Social Security benefits.

Individuals who were married for more than ten years, who did not remarry, and haven’t received a work-sponsored pension may be eligible to receive Social Security benefits depending on their spouse’s work record. When a former spouse meets specific requirements, they are treated as a current spouse, thereby extending entitlement to their Social Security benefits. However, if the former spouse receives Civil Service Retirement System benefits, they will be affected by the Government Pension Offset. This detail will further reduce spousal benefits by up to 60%. Unfortunately, in many cases, this nearly eliminates the entirety of the retirement benefit.