How to apply for Social Security: A step-by-step guide
Applying for Social Security benefits is a significant decision that can greatly impact your financial future.
The process itself is fairly simple, but determining the right time to apply for Social Security can be much more complex.
In this guide, we will walk you through the application process and help you make an informed decision about when to start receiving benefits.
5 easy steps to apply for social security
Let’s begin with the basic steps required to apply for Social Security. While the process may seem simple, careful preparation is key to ensuring everything goes smoothly.
Step 1: Confirm your decision to apply
Before moving forward, it’s essential to be confident in your decision to apply for Social Security. This choice will have long-term financial implications, so it’s important to weigh your options carefully.
Step 2: Verify eligibility
To be eligible for Social Security benefits, you need to be at least 61 years and 9 months old. Additionally, you must have worked for at least ten years in jobs that qualify for Social Security credits. If you meet these criteria, you’re on the right path.
In fact, nearly 96% of American workers are eligible for Social Security, meaning most people qualify after years of work.
Step 3: Gather your documents
The next step in the process of applying for Social Security is gathering the necessary documentation. While this step is straightforward, it can take some time. You will need:
- Proof of your birthdate and place of birth.
- Your Social Security number.
- If you are not a U.S. citizen, your permanent resident card number.
- Names and details about your spouse, including their Social Security number and birthdate.
- Information on previous marriages, including ex-spouses’ details (if applicable).
- Details about dependent children, including birthdates and any disabilities.
- Employment details, including current and past employers.
- If you’re self-employed, your business type and income details.
- If you wish to have your benefits deposited directly into your bank account, your bank account number and routing details.
Once you have all your documents in order, you will be ready to apply for Social Security.
Step 4: Complete your application
With your documents ready, you can now proceed to complete the application. There are several ways to apply for Social Security:
- Online: The fastest method, it should take around 15 minutes.
- By phone: Call 1-800-772-1213 for assistance.
- In person: Visit your local Social Security office (appointment required).
Step 5: Monitor your application
After you’ve submitted your application, the Social Security Administration will process it. They may contact you for further information or clarification. You can also track the status of your application online.
When is the best time to apply for social security?
Though the application process is simple, the timing of when to apply for Social Security can significantly affect your retirement income. The decision on when to start receiving benefits is not one-size-fits-all. Here’s what you need to consider.
Early application (Age 62)
You can begin applying for Social Security as early as age 62. However, taking benefits at this age is considered “early” by the Social Security Administration. While it can provide immediate financial relief, there are drawbacks.
Each month you begin taking benefits before your Full Retirement Age (FRA) will result in a reduction of your monthly payment. For example, if your FRA is 67 and you start at 62, your monthly benefit could be reduced by up to 30%.
Full retirement age
Your FRA depends on the year you were born and falls between ages 66 and 67. At this point, you will be entitled to your full monthly benefit amount, without any reductions.
If you’re unsure of your FRA, you can consult the Social Security website or your Social Security statement for more information.
Delaying benefits for increased monthly payments
If you delay applying for Social Security beyond your FRA, you will receive a higher benefit when you finally start collecting.
For every year you wait after your FRA, your benefits can increase by about 8%. This can make a significant difference in the long run, especially if you live well into your 80s or beyond.
Calculating the optimal time to start
The decision on when to apply for Social Security can be a challenge. Fortunately, tools like the Social Security Explorer (available through the Boldin Retirement Planner) can help you compare your potential benefits at different ages. However, there are some general rules to guide your decision.
If you need the income immediately, or if you have health concerns that may shorten your life expectancy, taking benefits at 62 might be the right choice for you.
This is also an option for individuals who do not expect to live much longer than the average life expectancy.
Take benefits at full retirement age
If you anticipate living a longer life but want to maximize your Social Security benefits, it may make sense to start at your Full Retirement Age. This is typically the best option for those who expect to live well into their 80s, ensuring that they collect the maximum benefit over time.
Wait until age 70
For those who are confident in their health and anticipate living into their 80s or 90s, delaying benefits until age 70 is often the most beneficial choice. The increase in benefits you receive by waiting is significant and can provide a larger, more secure income in your later years.
If you have dependent children, you may be eligible for additional Social Security benefits. Children under 18 or those under 19 and still in full-time secondary school may be eligible for benefits based on your earnings.
In this case, you may want to consider applying for Social Security earlier to take advantage of these benefits for your family.
The process to apply for Social Security is simple, but the decision about when to start benefits is complex and highly personal. It requires careful consideration of your financial needs, health, life expectancy, and family circumstances.
