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Social Security Fact Sheet

KEY TERMS:

  • FRA: Full Retirement Age – The age at which a person may first become entitled to full or unreduced retirement benefits.

  • PIA: Primary Insurance Amount – The benefit a person would receive if he or she elects to begin receiving retirement benefits at his or her FRA.

  • Spousal Retirement Benefit – A spouse receives one-half of the worker’s PIA, unless the spouse begins collecting benefits before his or her FRA.

  • DRC: Delayed Retirement Credits – Social security benefits are increased by a certain percentage if an individual delays retirement beyond his or her FRA.

  • Provisional Income – The level of income that is used to determine whether a taxpayer is liable for tax on his or her Social Security benefits.

PERCENT RECEIVED

Percent of Primary Insurance Amount (PIA) received at each age of eligibility. If a worker or spouse begins collecting benefits before his or her Full Retirement Age (FRA), the benefit amount is reduced. Workers can earn Delayed Retirement Credits (DRC) for waiting until after their FRA to receive benefits.

For Primary Earners with FRA of 66

Age 66 67 68 69 70
% of PIA 100% 108% 116% 124% 132%

For Primary Earners with FRA of 67

Age 62 63 64 65 66 67 68 69 70
% of PIA 70% 75% 80% 86.7% 93.3% 100% 108% 116% 124%

For Spouses with FRA of 66

Age 66
% of PIA Received 50%

For Spouses with FRA of 67

Age 62 63 64 65 66 67
% of PIA Received 32.5% 35% 37.5% 41.7% 45.8% 50%

TAXATION OF BENEFITS

Provisional Income


  0% 50% 85%
Single <$25,000 $25,001 - $34,000 >$34,000
Married <$32,000 $32,001 - $44,000 >$44,000

Provisional income is your Adjusted Gross Income + Tax-Exempt Interest + 50% of your Annual Social Security

REDUCTION OF BENEFITS

Earnings Test

Prior to FRA $1 reduction in benefits for every $2 of earned income over $18,960 threshold.
Year of FRA $1 reduction of benefits for every $3 of earned income over $50,520 threshold.
FRA $0 reduction


FULL RETIREMENT AGE


Year of Birth FRA
1943-1954 66
1955 66 & 2 months
1956 66 & 4 months
1957 66 & 6 months
1958 66 & 8 months
1959 66 & 10 months
1960 or later 67

Note that if you qualify for benefits as a Survivor, your full retirement age may be slightly different. Visit the Social Security website or call the Stifel Wealth Planning Department for more information.


Maximum Taxable Earnings $142,800

Maximum possible monthly benefit for those reaching their Full Retirement Age in 2021 is $3,148.

Stifel does not offer legal or tax advice. You should consult with your legal and tax advisors regarding your particular situation.

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