When am I eligible to receive Social Security retirement benefits?
Starting in 2000 the age for full retirement benefits increased about one month per year from age 65. In 2022, the age for full benefits will be 67. Click here to see the full retirement age chart.
You may begin collecting Social Security retirement benefits at age 62, but this will be at a reduced amount. If you decide to take early retirement benefits, these benefits do not increase once you reach full retirement age.
How are my benefits calculated?
Retirement benefits are, in very general terms, based on an individual’s taxable earnings averaged over the working lifetime and the payments you and your employer paid into the Social Security trust fund. You may request a statement of your earnings and your estimated retirement benefits from the Social Security Administration. Ask for "Personal Earnings and Benefit Estimate Statement." This form can be obtained through the Social Security Administration’s web site. The Administration also mails these forms annually to those over age 25 who are not receiving benefits.
To be eligible for any benefits, an individual born in 1929 or later must earn 40 credits. Since a person can obtain a maximum of only 4 credits per year, he or she must work (employed or self-employed) and pay into the Social Security Trust Fund for at least 10 years. This does not have to be in a consecutive period. The minimum amount of earnings changes from year to year. The minimum amount of earnings for 2012 to earn one credit is $1130 during a quarter year.
Can I work after I start collecting Social Security retirement benefits?
Yes, there is no earnings limit for those at full retirement age. For every dollar you earn through employment, you keep in benefits.
However, if you are reaching full retirement age in 2012, you may earn only $38,880 a year or $3,240 per month in those months before you reach it without $1 in benefits being withheld for every $3 in earning above the limit. Finally, if you are not reaching full retirement age in 2012, you may earn $14,640 a year or $1,220 per month, but your benefits will be reduced $1 for each $2 you earn above the limit.
Again, there is no reduction in benefits for those at full retirement age and older regardless of the amount of their earnings.
