When creating a retirement plan, it is important to understand your Social Security benefits.

Social Security started as a program of social insurance to help those who were less fortunate. Today, Social security is considered less of a social welfare program and more of a retirement entitlement.

Social Security is part of your retirement plan especially if you are a FERS employee. Generally speaking, the CSRS is a defined benefit plan, financed through joint employer-employee contributions, that provides annuities in the event of the retirement, disability, or death of a covered worker.

FERS Retirement is a three-tiered system including: 

1. Social Security, 
2. a Federal pension, and 
3. a tax-deferred savings plan.

It is important to understand the following:

• How you qualify for Social Security benefits
• How your earnings and age can affect your benefits
• What you should consider in deciding when to apply

Some basic information on Social Security retirement benefits is listed below. It isn’t intended to answer all questions but will help you prepare for retirement.

The minimum age to collect is 62, but….

• There is an earnings test until you reach your “Full Retirement Age” (FRA).
• The longer you wait (up until age 70), the higher your benefit will be.
• If you retire & start receiving Social Security at 62, your payments will be 25% less than if you retired & collected at your “FRA”.
• Age: When recipient begins to draw Social Security at any age before Full retirement Age (FRA).
• Social Security will withhold $1.00 for every $2.00 earned in excess of $17,040.00.
• In addition; Social Security will withhold $1.00 for every $3.00 earned over $45,360.00.*
• Based on the Social Security recipient income only.
• It is recommended that tax preparation compare joint or single filing. Some exemptions to the rule.