What is my benefit and when should I claim? The Primary Insurance Amount (PIA) is the monthly benefit you'll receive if you apply for Social Security at full retirement age (FRA) and is calculated on your highest 35 years of earnings. Claiming benefits before FRA-age 67 for those born after 1960 - will result in a reduction of your benefit while deferring until 70 will result in an annual increase to your benefit.
You can claim spousal benefits equal to 50% of your spouses PIA-reduced if claimed before FRA - as long as you are at least 62 and your spouse has already filed for benefits. Spousal benefits can also be claimed on an ex-spouse if you were married at least 10 years, are currently unmarried, and the ex-spouse is at least age 62. Claiming a spousal benefit (married or divorced) does not affect the benefit your spouse would receive.
Benefits may be withheld or taxed depending on your earned income. If in 2019 you earn more than $17,640, and you receive social security benefits before your FRA year, you will need to repay $1 for every $2 over that amount. Also, up to 85% of your benefits could be taxed if you have income above certain limits.
In addition to understanding the basics of social security benefits you should also consider yours and your spouse's life expectancy, health, and retirement income needs and sources before deciding when to claim benefits. For help determining the best social security claiming strategy for you, contact Financial Investment Team today.
Investment advisory services offered through Financial Investment Team, Inc., an investment advisor registered with the U.S. SEC. Securities offered through Peak Brokerage Services, LLC. Member FINRA/SIPC. Financial Investment Team, Inc. is a separate and independent entity from Peak Brokerage Services, LLC.
California Insurance Licenses OG28007, OE79360
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