There are approximately 2,728 rules from the Social Security handbook governing just its benefits. As a Social Security beneficiary, you do not need to know all of it, but it’s better to know some of the most important rules, just in case.
As a Social Security beneficiary, did you know that the Social Security handbook had 2,728 rules governing just the benefits? If not, here are some rules that you need to know.
According to Go Banking Rates, PBS author and economics professor, Laurence Kotlikoff calculated last year that the Social Security handbook had 2,728 rules that a Social Security beneficiary needs to follow.
There is no pressure for you, a Social Security beneficiary, to learn all of the rules. But there are some rules that you might need to know, just in case. As a Social Security beneficiary, breaking some rules though, may get you penalized. According to Social Security, the penalties are nonpayment of benefits, as well as ineligibility for cash benefits.
As a Social Security beneficiary, you need to know that these penalties vary according to rules. See Below:
- Six consecutive months the first time SSA penalizes you;
- 12 consecutive months the second time SSA penalizes you;
- 24 consecutive months the third time SSA penalizes you.
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Although breaking other rules do not necessarily result in penalties, it can still lead to smaller monthly payments.
According to Yahoo!Finance, one of Social Security’s most important rules, governs when a Social Security beneficiary would collect their retirement benefits. A Social Security beneficiary can claim their retirement benefit at the age of 62. However, they cannot collect all the money they are due until their full retirement age, which is either 66 or 67.
Another rule to know as a Social Security beneficiary, is that your retirement benefits are based on the average indexed monthly earnings for up to 35 years. If a Social Security beneficiary worked the full 35 years then they can maximize their Social Security check. If someone worked less than 35 years, then your benefits won’t be as much.
The SSA lets you withdraw your original application for your retirement benefits only once. You must do so within 2 months of the date you first claimed your benefits. If you try to withdraw your original application after you have received your benefits for more than one year, then you are considered breaking the law and will be denied the withdrawal. With this option, according to AARP, you can accrue delayed retirement credits which will increase your monthly retirement benefit, whenever you will start collecting again.