Quiz:
How Much Do You Know About Social Security Retirement Benefits?
Social
Security is an important source of retirement income for millions of Americans,
but how much do you know about this program? Test your knowledge, and learn
more about your retirement benefits, by answering the following questions.
Questions
1.
Do you have to be retired to collect Social Security retirement benefits?
a.
Yes
b.
No
2.
How much is the average monthly Social Security benefit for a retired worker?
a.
$1,360
b.
$1,493
c.
$1,585
d.
$1,723
3.
For each year you wait past your full retirement age to collect Social
Security, how much will your retirement benefit increase?
a.
5%
b.
6%
c.
7%
d.
8%
4.
How far in advance should you apply for Social Security retirement benefits?
a.
One month before you want your benefits to start.
b.
Two months before you want your benefits to start.
c.
Three months before you want your benefits to start.
5.
Is it possible for your retirement benefit to increase once you start receiving
Social Security?
a.
Yes
b.
No
Answers
1.
b. You don't need to stop working in order to claim Social Security retirement
benefits. However, if you plan to continue working and you have not yet reached
full retirement age (66 to 67, depending on your year of birth), your Social
Security retirement benefit may be reduced if you earn more than a certain
annual amount. In 2017, $1 in benefits will be deducted for every $2 you earn
above $16,920. In the calendar year in which you reach your full retirement
age, a higher limit applies. In 2017, $1 in benefits will be deducted for every
$3 you earn above $44,880. Once you reach full retirement age, your earnings
will not affect your Social Security benefit.
2.
a. Your benefit will depend on your earnings history and other factors, but
according to the Social Security Administration, the average estimated monthly
Social Security benefit for a retired worker (as of January 2017) is $1,360.1
3.
d. Starting at full retirement age, you will earn delayed retirement credits
that will increase your benefit by 8% per year up to age 70. For example, if
your full retirement age is 66, you can earn credits for a maximum of four
years. At age 70, your benefit will then be 32% higher than it would have been
at full retirement age.
4.
c. According to the Social Security Administration, you should ideally apply
three months before you want your benefits to start. You can generally apply
online.
5. a.
There are several reasons why your benefit might increase after you begin
receiving it. First, you'll generally receive annual cost-of-living adjustments
(COLAs). Second, your benefit is recalculated every year to account for new
earnings, so it might increase if you continue working. Your benefit might also
be adjusted if you qualify for a higher spousal benefit once your spouse files
for Social Security.
For
more information, visit the Social Security Administration website, ssa.gov.
