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Social Security Retirement Benefits:
What You Need to Know
“Law You Can Use” Courtesy of the Ohio State Bar Association
Q: What is a Social Security “credit”?
A: During your working years, you earn Social Security credits based on how much you earn in wages. The amount of earnings you need for one credit rises as average earnings levels rise. In 2014, you received one credit for every $1,200 you earn in wages. You can earn up to a maximum of four credits per year. Most people need 40 credits (equivalent to 10 years of work) to be eligible for retirement benefits. For more information about credits, read “How You Earn Credits” at www. socialsecurity.gov/pubs.
Q: My husband doesn’t have enough work credits to qualify for Social Security retirement benefits. Can he qualify on my record?
A: A spouse receives one-half of the retired worker’s full benefit unless the spouse begins collecting benefits before full retirement age. If your husband begins collecting benefits based on your Social Security record before he reaches full retirement age (age 65 - 67, depending on the year he was born), the amount of his benefit is reduced by a percentage based
on how many months short of full retirement age he is.
Q: How early can I begin receiving Social Security retirement benefits?
A: You can get a reduced bene- fit as early as age 62. The 1983 Social Security Amendments raised the full retirement age for people born in 1938 and later, but it did not change the minimum retirement age.
Q: Is there any penalty for beginning to take my benefits at age 62?
A: Yes. If you start taking your benefits before your full retire- ment age, the amount you can
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collect will be lower than the amount you can collect at your full retirement age. (If you wait until full retirement age, your benefits will be about 33 percent higher, and your benefits will be about 76 percent higher if you defer them to age 70.) Also, if you begin taking benefits at age 62 while you are still working, $1 in benefits will be deducted for every $2 you earn above $15,480 (for 2014). Visit the “Retirement Estimator” at www.socialsecurity.gov/estimator for more infor- mation.
Q: When I start receiving benefits, will the amount stay the same for the rest of my life? A: No. Generally, your benefit amount increases every year to protect you against inflation. An increase in the consumer price index will give you a cost-of-living adjustment (COLA). For 2014, that COLA adjustment is 1.5 percent. Your benefit also may increase if you work and con- tinue to pay Social Security taxes while receiving benefits. If your earnings for the year are higher
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