A big thanks to Britany Enelow from the Credit Union of New Jersey for a very informative presentation demystifying the basics of Social Security.  There are many different components to Social Security and deciding when to collect and how to file can have a significant impact on amount of money you can receive.  Some of the major topics covered include:

• Social Security Basics
  • Social Security was created by an act of Congress so there are no guarantees that the problem will last from year to year
  • Social Security is calculated partly off the number of “Credits” you earn
    • 1 credit is equal to 3 months of working
    • In order to be eligible to collect Social Security, you must a minimum of 40 credits, or 10 years of work
    • You stop earning credits at age 70, so if you decide to keep working, you will not be paying anymore into social security and it will not enhance your benefits anymore
  • To receive all of our Social Security benefits, you must wait until your Full Retirement Age, which is based on the year you were born
    • 1943-1954 – age 66
    • 1960 and later – age 70
    • For years in-between, add 2 months to 66 for every year above 1954
    • If you file before your Full Retirement Age, you will receive reduced benefits for the rest of your life
  • Primary Insurance Amount or PIA
    • PIA is your monthly benefit amount at your Full Retirement Age
    • If you file after your Full Retirement Age, you will receive more than your PIA
  • After you file, you have 12 months to make and changes to your filing status

• Types of Benefits
  • Spousal Benefits
    • You can collect Social Security Benefits for your spouse whether you are still married, widowed, or divorced
    • You can only collect Spousal Benefits if your spouse is retired or deceased
    • If you claim Spousal Benefits, the amount is equal to half the amount of your spouse’s benefit, minus the amount of your benefit
      • For example, if Spouse A receives $2,000 and Spouse B receives $500, the Spousal Benefits for Spouse B would be $500.
    • If you are divorced, you can collect only if:
      • You were married to that spouse for at least 10 years
      • You are unmarried
      • At least age 62
      • Your benefits are less than the spouse
    • If you are widowed:
      • You can collect at your Full Retirement Age, but the amount will depend on whose benefits are higher
      • You can collected a reduced amount starting at age 60
      • You can collect at age 50 if the surviving spouse is disabled or there is a dependent child
        • Once the child is no longer a dependent, the benefits stop until you refile at age 60 or Full Retirement Age

• Working After Collecting
  • There are no penalties for collecting Social Security and working if you are past the Full Retirement Age
  • From age 62 – year of Full Retirement Age, they will withhold $1 for every $2 you earn, if you earn above $17,640
  • During the year of your Full Retirement Age, they will withhold $` for every $3 you earn, if you earn above $46,920

• Important Considerations
  • Pension/Government Pension Offset Plan
    • Some pension programs have an Offset Plan, which means that the amount you receive from your pension will reduce the amount you will collect from social security

Please visit the Social Security Administration’s website, https://www.ssa.gov/, to learn more or to sign up for an account to track your Social Security Benefits.  If you have specific questions about Social Security, the presentation, or would like to discuss your personal financial situation, please reach out to Britany Enelow, Financial Advisor, Credit Union of New Jersey, at 609-538-4061 ext. 2056 or benelow@cunj.org.