CRC CRC Social Security & Medicare Benefits 1 — Questions and Answers
Question 1: At what age can a U.S. worker first claim reduced Social Security retirement benefits?
- 59½
- 60
- 62 (Correct answer)
- 65
Correct answer: 62
Workers can begin claiming Social Security retirement benefits as early as age 62, but doing so results in a permanently reduced benefit compared to waiting until full retirement age.
Question 2: What is the Full Retirement Age (FRA) for someone born in 1960 or later under Social Security rules?
- 65
- 66
- 66 and 10 months
- 67 (Correct answer)
Correct answer: 67
For individuals born in 1960 or later, the Social Security Full Retirement Age is 67, at which point they receive 100% of their calculated primary insurance amount.
Question 3: How much does a Social Security benefit increase for each year a worker delays claiming beyond Full Retirement Age, up to age 70?
- 3%
- 5%
- 8% (Correct answer)
- 10%
Correct answer: 8%
Delayed retirement credits increase Social Security benefits by 8% per year (or 2/3% per month) for each year benefits are deferred beyond FRA, up to age 70.
Question 4: A married individual's Social Security spousal benefit is worth up to what percentage of the worker's primary insurance amount?
- 25%
- 33%
- 50% (Correct answer)
- 75%
Correct answer: 50%
A spouse who has not worked or has a lower benefit is entitled to up to 50% of the working spouse's primary insurance amount at the spouse's full retirement age.
Question 5: What is the Social Security 'earnings test' and who is subject to it?
- A test to determine benefit eligibility based on work history
- A reduction in benefits for beneficiaries under FRA who earn above an annual limit (Correct answer)
- An income means test that reduces benefits for high earners
- An annual review of disability status
Correct answer: A reduction in benefits for beneficiaries under FRA who earn above an annual limit
The earnings test reduces Social Security benefits for recipients who claim before FRA and continue working, with $1 withheld for every $2 earned above the annual threshold.
Question 6: Which Social Security filing strategy allows a divorced spouse to claim benefits based on an ex-spouse's record?
- The marriage must still be active to claim on an ex-spouse's record
- A divorced spouse can claim if the marriage lasted at least 10 years and they are currently unmarried (Correct answer)
- A divorced spouse must wait until the ex-spouse claims first
- Benefits based on an ex-spouse's record are no longer available
Correct answer: A divorced spouse can claim if the marriage lasted at least 10 years and they are currently unmarried
A divorced spouse can claim Social Security benefits on their ex-spouse's record if the marriage lasted at least 10 years, they are currently unmarried, and they are at least age 62.
CRC CRC Social Security & Medicare Benefits 1
At what age can a U.S. worker first claim reduced Social Security retirement benefits?