you the checks. These five steps will ease your benefit collection
process.
Guess what? Social Security payments aren’t automatic. If you’re nearing
retirement age, you probably have not thought about signing up for Social
Security, but you should know the process isn’t automatic. The Social Security
Administration won’t start paying out your benefits until you file an
application.
Here are some tips on what to do when you apply for Social Security.
1. Decide when you want to receive benefits
This may seem straightforward. You want your money as soon as possible,
right?
Wrong.
You may actually be best off delaying getting your money until the last
possible minute. That’s because each year you delay cashing in on Social
Security, within a range of seven years or so, means more money in each check
you receive.
So if you need money as soon as possible, go ahead and get benefits as soon
as you can. But if you can wait, it’s probably best to do so. A recent study
found that, if you delayed your Social Security cash-in until age 70, you’d
enjoy 41% higher annual income than you would if you started getting the checks
at age 62.
Your life expectancy may also play a role. If, say, both your parents lived
into their 90s, you may want to wait and get the higher amounts later. If you’re
in your early 60s and are in poor health, you may want to get the money as soon
as you can.
2. Call the SSA early
You’ll have a much smoother signup experience if you reserve an appointment
in advance, rather than just showing up and navigating the long lines in the
office.
Call the SSA at (800) 772-1213 about three months in advance of the month in
which you want to file for retirement benefits to schedule an appointment, which
will get you quickly to a representative when you show up.
Another option is to file for benefits online
, which can make the process even quicker and easier.
3. Have your documentation ready
If you don’t have everything ready when you go to your appointment, it won’t
be pretty. According to the SSA Web site, you’ll need:
- Your Social Security number
- Your birth certificate
- W-2 forms or self-employment tax form from the previous year
- Your most recent annual Social Security statement
Also, if applicable, you should take:
- Your bank name, routing number, and account number for direct deposit
- Your military discharge papers if you had military service prior to 1968
- Your spouse’s birth certificate and Social Security number if he or she is
applying for benefits - Your children’s birth certificates and Social Security numbers, if you’re
applying for benefits for them - Proof of U.S. citizenship or lawful alien status if you (or the spouse or
child applying for benefits) were not born in the U.S.
If you’re missing any of these documents, find out how to get copies of them
before you need to apply for benefits. This website from the
Centers for Disease Control and Prevention can help you figure out where to
write to receive copies of vital records, for example.
4. Seek out other resources
Local Senior Citizen Centers or Council on Aging Offices may be able to help
guide you through the process of applying for benefits.
5. Don’t rely on Social Security alone
Hopefully this message isn’t getting to you too late in the game. Social
Security provides a good safety net for older Americans, but it may not provide
real financial comfort.
Do what you can before you retire to save money, so Social Security can act
as a supplement, rather than your only resource.
