As a FERS participant approaching retirement, you’re probably focused on growing your Thrift Savings Plan (TSP) nest egg. But let’s not forget that your FERS annuity and Social Security Retirement benefits are permanent sources of income you can count on in retirement. When it comes to your pension, you likely know the facts. But how high is your Social Security IQ?
Do You Know How Your Social Security Benefit Calculated?
Your benefit is based on your highest 35 years of indexed earnings and the age you are when you file for benefits. If you’re considering working a few years longer to get the FERS 10% Bonus, those extra years may also help increase your Social Security benefit.
Born In 1960 Or Later? Your Full Retirement Age (FRA) Is 67
If you were born in 1960 or later, you’ll have to wait until you turn age 67 to be eligible for 100% of your Social Security benefit. If you were born prior to 1960, check this chart for your FRA.
Did You Know You Can File For Social Security As Early As Age 62?
You can file for your benefits starting at 62 but you’ll be subject to penalties that permanently reduce your benefit when you file before your FRA. To find out how much your benefit will be reduced, use this chart.
Did You Know You Can Increase Your Benefit If You Delay Filing?
When you delay filing beyond your FRA, you earn credits that increase your benefit by 8% per year up until age 70. For example, if you were born in 1960 and your FRA is age 67, you’ll receive 124% of your earned benefit when you delay to age 70. Learn more here.
“Even if an ex-spouse files for a spousal benefit on your work record, it will not affect your benefit at all.”
Can You Claim A Spousal Benefit If You’re Divorced?
Short answer: yes. There are a few requirements you need to meet to qualify. Your marriage must have lasted more than 10 years, you haven’t remarried, and you need to be at least 62 years old. Even if an ex-spouse files for a spousal benefit on your work record, it will not affect your benefit at all.
Did Know You Have 12 Months To Ask For A Do-Over?
If you change your mind within 12 months of filing for your Social Security benefits, you can withdraw your application for a one-time do-over. Of course, you’ll have to pay back any benefits you’ve already received.
Now that you have the facts, touch base with an FRC® trained advisor who understands how Social Security works with your other federal benefits.
