Washington, DC - Social Security Matters by AMAC’s Certified Social Security Advisor C.J. Miles via Association of Mature American Citizens:
QUESTION: My wife and I are getting to the point where we want to look into filing for Social Security. We have a lot of questions about how and when we should file. We are hearing so many different things about what to do and what not to do and we are just getting really confused. I decided to buy a book on the subject, but there are so many to choose from and I don’t want to waste my money. Do you have any suggestions for us to help us just get started?
ANSWER: You are definitely not alone; many people feel this way. The number one thing I recommend is what you are already doing – educate yourself and make a decision based on what is right for you. It may be a daunting task, but it will definitely be worth it in the long run.
With that being said, there are two things in particularly you should get from the Social Security website. First, you should get your Social Security Statement. If you don’t already have this, you can view it online by creating a mySocialSecurity account at www.ssa.gov. Your mySocialSecurity account will allow you to do multiple things, but for now, use it to review your Social Security Statement. Your wife should also create one for herself. Even though you two are married, you cannot view each other’s records. The Social Security Statement will show you estimated benefit amounts at ages 62, 66 (full retirement age), and 70. It will also tell you other estimated benefit amounts, such as disability benefit, surviving spouse benefit, and maximum family benefit. The statement also shows all of your lifetime earnings that were used to calculate your benefit.
The second thing you should get from the Social Security website is a publication called “Retirement Benefits”. Although it is not a comprehensive explanation of filing strategies and rules, it is intended to get you started and explain the basics, such as eligibility, family members’ benefits, working while getting Social Security, Medicare, how to apply, and other basic information you need to know. You can access the most recent issue of this publication on the Internet at http://www.socialsecurity.gov/pubs/EN-05-10035.pdf.
Once you have gone through these two documents, you may end up with more questions than answers – but there is nothing wrong with that. This will at least provide you with some basics to steer you in the right direction. Write down your questions as you think of them, and do not hesitate to get the answers before making your decision.
QUESTION: I filed for my Social Security retirement benefits at the age of 62, which gave me reduced benefits. So I decided I would be better off working until my full retirement age and realized it was a mistake to file. Do I have the option to cancel my application?
ANSWER: Yes you do. As long as you filed within the past year, you can file the form "SSA-521", which is a "withdrawal of application". The good news is that if you choose this option, you will not be required to pay interest or penalties, and you can refile for your Social Security benefits at a later time as if you had never filed before. The bad news is that you will have to repay any benefits you received thus far. After you file the SSA-521, the Social Security office will send you a letter indicating how much you owe based any payments you have received so far. For income tax purposes, make sure you keep records of both benefit payments Social Security made to you and payments you paid back. If you are on Medicare and are having your Medicare premium deducted from your Social Security payments, make sure you contact your Medicare agent and let them know you are withdrawing your Social Security application. That way your coverage will continue and Medicare will bill you for your premiums.
To ask a question about Social Security contact AMAC’s C.J. Miles at This email address is being protected from spambots. You need JavaScript enabled to view it..
The information contained in this article is for general information purposes only. Every individual’s situation is unique and you should make your benefit choices according to your personal needs. Furthermore, AMAC and its affiliates do not provide legal or accounting services. Please contact a licensed professional for such advice.
