Frequently Asked Questions From a Planner’s Perspective

Can I work while receiving Social Security benefits?

Yes, but there are rules. If you claim benefits before your Full Retirement Age (FRA), you are subject to an annual earnings test. If you earn over the yearly limit, the SSA will withhold $1 in benefits for every $2 you earn above that threshold. In the year you reach FRA, the limit is much higher, and the withholding is $1 for every $3 earned. The month you hit your FRA, the earnings test disappears completely. From that point on, you can earn any amount of money without your benefits being reduced.

What is the absolute best month to start my Social Security benefits?

This is a classic “insider” question. Social Security pays benefits in the month *following* the month for which they are due. For example, your benefit for the month of April is paid in May. This means if you want your first payment to be for your 66th birthday month, you should state on your application that you want your benefits to begin in that month. You are not eligible for benefits for the months before you turn 62. So if your birthday is mid-month, you must wait until the following month to be eligible for your first check.

My income dropped significantly this year after I retired. Can I do anything about my high Medicare premiums?

Absolutely. This is the IRMAA issue we discussed. Your premiums are based on old tax data. You must contact the Social Security Administration and file Form SSA-44 to report a life-changing event like retirement. Provide documentation of your income reduction. If approved, they will recalculate your premium based on your current, lower income, which can lead to immediate and substantial savings.

How do spousal and survivor benefits really work? Is there a strategy?

Spousal benefits allow a lower-earning spouse to receive up to 50% of the higher-earning spouse’s full retirement benefit. Survivor benefits are even more critical. When one spouse passes away, the survivor is entitled to receive the larger of the two Social Security benefits. The key strategy here involves the higher earner. By delaying their claim until age 70, they are not only maximizing their own retirement check but also maximizing the potential survivor benefit for their spouse. This single decision can provide decades of enhanced financial security for the surviving partner.

I think I qualify for low-income programs, but I’m overwhelmed. Where do I even start?

This is a very common feeling. The best place to start is the federal government’s official benefits website, Benefits.gov. It has a confidential screening tool to help you identify programs you may be eligible for. Another outstanding resource is your local Area Agency on Aging. They offer free, personalized assistance and can guide you through the application processes for federal, state, and local programs in your specific area.