You've looked forward to claiming Social Security for a long time. Now you only have an application and a few months of waiting standing between you and monthly checks for the rest of your life. Those are the basics, anyway.
But if you hope to maximize your lifetime benefit, you'll want to take three specific steps before you apply. You can get started on them right now if you have some time.
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1. Understand how your claiming age affects your checks
Your Social Security benefit depends on several factors, including your work history and your age at application. Signing up is essentially locking in that benefit for the rest of your life. Once you start claiming, it's rare for your benefits to increase apart from annual cost-of-living adjustments (COLAs). You need to choose your claiming age carefully.
The Social Security Administration assigns you a full retirement age (FRA) based on your birth year. It's 67 for most workers today, but you don't have to sign up then. You can apply as early as 62, though this is considered early claiming.
You lose 5/9 of 1% per month for up to 36 months of early claiming and then 5/12 of 1% per month thereafter. If you apply as soon as you turn 62, you'll get 30% less than you would've received if you'd applied at your FRA.
Put another way, your checks grow with every month you delay your application, and the rate of increase accelerates over time. Once you pass your FRA, your checks grow by 2/3 of 1% per month until you qualify for your maximum benefit at 70. You should definitely sign up no later than this or else you're just costing yourself benefits.
Generally speaking, early claiming makes sense if you have no other way of covering your expenses or if you have a short life expectancy. But if neither of these factors apply, you may get a larger lifetime benefit by waiting until your FRA or beyond to sign up.
You can estimate your Social Security benefit at every claiming age using the tool in your my Social Security account. Ensure you're comfortable with the amount you expect to receive before completing your application.
2. Talk it over with your spouse if you're married
Married couples can maximize their household Social Security benefits by coordinating their claiming strategies. If both partners worked, they would each be eligible for a retirement benefit and a spousal benefit. A spousal benefit is worth up to one-half of the benefit the retired worker qualifies for at their FRA. The Social Security Administration only pays you the larger of the two benefits, though, and you can only claim a spousal benefit after your partner has applied.
When both partners qualify for similar retirement benefits, it makes sense for them to delay benefits as long as possible, unless financial difficulties prevent this or they have a short life expectancy. In that case, it might make sense for one or both to claim early.
When there's a significant income disparity, the lower earner might choose to apply early. This could give the household a little extra cash and may enable the higher earner to delay their Social Security application until they qualify for a larger benefit. Then, when the higher earner applies, the lower earner can request to switch to a spousal benefit if it's worth more than what they're currently receiving.
3. Start gathering your documents
Having the necessary documents together before you apply for Social Security can speed up the application process. You'll need the following:
- Your Social Security number
- A certified birth certificate
- Proof of U.S. citizenship or lawful alien status if not born in the U.S.
- Copies of your military service papers if you served before 1968
- A copy of your W-2 or self-employed tax return from the past year
You'll need to provide original documents for your birth certificate and proof of citizenship or lawful alien status. Copies are not acceptable.
If you're missing any of these documents, try to collect them now. Your employer may have copies of your old W-2s, and the state where you were born should have a copy of your birth certificate that you can order.
Prepare as much as you can before applying, but don't delay your application due to missing documents. The Social Security Administration may be able to help you track down the missing forms if necessary. You can reach out by phone or schedule an appointment at your local Social Security office if you need some help.
