Home Personal Finance 3 Social Security Moves to Make Before the End of the Year

3 Social Security Moves to Make Before the End of the Year

by TodayDigitNews@gmail.com
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(Molly Bachman)

If you turn 62 or older in 2023, you have the option to sign up for Social Security. But even if you don’t plan to apply for benefits next year, it’s still going to cost you money to work on these important Social Security tasks next month.

1. Know your retirement age

Many end up receiving lower monthly benefits than they were originally eligible for Social security Because they sign up before full retirement age (FRA). In some cases it is intentional.

However, many people don’t know their FRA and accidentally reduce their monthly benefits. that’s a problem.

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Your FRA depends on the year you were born. You can use this table to see what yours looks like.

year of birth

full retirement age




66 years and 2 months


66 and 4 months


66 and 6 months


66 months and 8 months


66 months and 10 months

1960 onwards


Data Source: Social Security Administration. Chart by author.

Note that you don’t necessarily have to claim Social Security with your exact FRA. In some cases it makes sense to file before the FRA. You can also delay submission past the FRA.

For each year you do, up to 70 years old, an 8% increase in monthly rewards. However, it is important to know the FRA so that you can strategically plan your Social Security claims.

2. Check your income statement

Each year, the Social Security Administration (SSA) issues workers an income statement summarizing wages. It’s important to read your income statement carefully, as an underreported salary could result in less monthly Social Security benefits in the future.

If you are over 60, you will receive an income statement by mail.If you are young, you should create an account at SSA website Access there.

The income statement not only summarizes wages for the year, but also includes an estimate of future monthly Social Security benefits. And that’s an important number to know.

Of course, the closer you are to retirement, the more accurate that estimate will be. However, even if you are young and know that your estimates may change based on future earnings, it’s still useful to have a baseline.

3. Start thinking about when to apply

If you’re in your 20s, 30s, or 40s, this is probably a move you can skip. But if you’re within 10 years of retirement, it’s actually a good time to start thinking about Social Security application age. Because that decision determines the monthly income that the program offers.

If you are married, this is the conversation you want to have with your spouse. That way you can tweak and come up with some options that work well together.

At this stage of the year, you may be more focused on holiday shopping than on your household budget. But it is worth taking the time to address these Social Security challenges before 2022 draws to a close. This is especially true if you believe you will be claiming benefits in 2023 or shortly thereafter.

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