The sooner you learn all the essentials about Social Security benefits, the better for your future retirement payments. First of all, the Administration’s checks and direct deposits are not meant to be the only money you get as a retiree. Therefore, you should look for other sources of income while you are working. For example, you may want to get a 401(k) retirement savings account, invest money, or get a pension.
What is more, you must have worked in jobs covered by Social Security and earned at least 40 work credits at the age of 62. Or else, you will not be able to file until you get them. To get the minimum of 40 work credits, you will need to work for at least ten years. Hopefully, you manage to work for 35 years not to see your retirement payment reduced.
COLAs and Social Security retirement benefits
Every year inflation goes up, and Social Security payments increase. The Agency uses the cost-of-living adjustment to make up for the loss of buying power. So, in 2025, there will be a 2.5% boost to keep up with inflation.
Many people do not know that their spouse and their children may be eligible for Social Security benefits on their record. Even if your spouse never worked, he or she may qualify. This happens with both SSDI and retirement benefits.
The next important thing to know is the fact that when you file for retirement or spousal benefit payments, you may need to apply for both of them at the same time.
How to learn about your future Social Security payment
The Administration offers the possibility of using a Retirement Calculator to see the estimates, especially if you and your spouse worked. Using the annual Statement is a bonus tip!
Those who use a Statement will see that:
- Social Security payments are lower at 62
- you can earn delayed credits at 70
- at Full Retirement Age, you get 100% of your benefits
What is more, Social Security may pay you benefits if you were married for 10 years, and are still divorced. Of course, it will not reduce your ex-spouse’s payment amount and will not be informed about your application.
