When Should a Person Take Social Security Benefits?
Applying for Social Security benefits can be daunting for different reasons: Maybe you're uncertain about the best time to collect retirement benefits, or you don't know whether your medical condition is severe enough to qualify you for benefits. Maybe you were dependent on a deceased spouse or parent and are having trouble paying bills, or you're elderly and in need of health care. If any of these situations apply to you, you may qualify for one or more of the Social Security benefit programs.
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Eligibility
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The first place to start with any of the Social Security benefits is the SSA's Benefit Eligibility Screening Test (BEST), which can be found on the SSA website. This tool screens for retirement, survivor's insurance, disability insurance and Medicare eligibility. To use the tool, you'll need your personal information, income information, work history and possibly medical history as well. Remember that this is merely a suggestion of which benefits you may be qualified for---it does not automatically guarantee you will receive them.
Types
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The SSA provides five main kinds of benefits: Retirement benefits, survivor's insurance, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI) and Medicare. Retirement benefits are paid to retirees of at least 62 years of age, survivor's insurance is for the surviving widows/widowers or children of workers. SSDI and SSI help the disabled, low-income and elderly with living and medical expenses, and Medicare is the federal health-insurance program exclusively for the elderly.
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Requirements
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The SSA urges you to apply for benefits as soon as you may need them, regardless of whether you have all your required documentation. Often the SSA will help you obtain the documents you need, but the more information you have on hand, the faster your approval process will be. Generally, you will need your Social Security number, citizenship documentation, work and income history, spouse's information and medical history.
Timing
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The only SSA benefit that doesn't have an age requirement is Social Security Disability Insurance (SSDI); all others have certain restrictions on your age. For survivor's benefits, you must be 60, or 50 if disabled. For Medicare, you must be 65 and for retirement, you must be at least 62 to receive benefits, although many people wait until full retirement age to apply. Full retirement age varies from age 65 to 67 depending on the year you were born.
Expert Insight
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The SSA suggests you think long and hard about when to collect Social Security benefits, especially retirement, since you will receive a reduced benefit if you collect early (at 62). If you choose to collect early, you must be prepared to have to work part time because of the reduced benefit. Alternately, if you wait to receive benefits until after full retirement age, you will be retro-paid for every month you didn't collect benefits, up to age 70. The downside of this option is that you may have to work longer to make ends meet. Regardless of when you actually retire, the SSA recommends applying for Medicaid at age 65 to avoid high premiums that often come with age.
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References
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