CRC CRC Social Security & Medicare Benefits

Question 1

At what age can a U.S. worker first claim reduced Social Security retirement benefits?

Accepted Answer

62

Answer

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?

Accepted Answer

67

Answer

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?

Accepted Answer

8%

Answer

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?

Accepted Answer

50%

Answer

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?

Accepted Answer

A reduction in benefits for beneficiaries under FRA who earn above an annual limit

Answer

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.

(CRC) Certified Retirement Counselor Practice Test

(CRC) Certified Retirement Counselor Practice Test

CRC CRC Social Security & Medicare Benefits