Social Security

Last Updated: 10/31/2024

Here's everything I know about Social Security.  Please comment or send me a note if you think something is wrong, misleading or misrepresented.

• Must work at least 10 years to collect
• Go to ssa.gov to see what you're eligible for
• Each year, payout will get a COLA (cost of living) adjustment
• Full Retirement Age (FRA) if born on 1960 or later is 67.
• https://www.socialsecurityintelligence.com/social-security-age-of-retirement/
• You can take as early as 62 at a reduced rate
• https://www.ssa.gov/benefits/retirement/planner/1960.html
• You get 100% at FRA, and 8% more every year after, up to 70
• Spousal benefit - up to half at FRA, see above. Wage earner must have filed, you must be at least 62.
• If divorced at least 2 years, but married at least 10, you can get spousal benefit - even if spouse didn't file.
• If widow - can take as early as 60, will be reduced if taken before FRA, cannot delay if spouse started taking before dying.
• If you work while taking social security, you will be penalized according to earnings test.  No penalty at FRA.
• https://www.ssa.gov/oact/cola/rtea.html
• Social security payments can (will) be taxed, but no social security tax 🙂
• https://www-origin.ssa.gov/.../retirement/planner/taxes.html
• If nothing changes, social security will go insolvent in 2033.
• There is social security insurance which will pay out 80% for the next 80 years in the event it goes insolvent.
• Currently, only first $163k of income is subject to social security tax.
• Current proposal with bi-partisan support to apply social security tax on income greater than 400k.

Disclaimer: I am not a financial advisor, use this information at your own risk.  Please consult with a financial advisor before making any big decisions.