Applying for Social Security

Published August 15, 2017
Here’s what you need to know when applying for your Social Security benefits.

Are you ready to take the plunge and apply for Social Security? Or, are you interested in tracking and predicting what your benefit will be? Here’s what you need to do:

Sign Up for My Social Security

In the name of making Social Security easier to integrate into your day-to-day life, the agency created My Social Security, created a site where individuals can establish an account, follow their earnings and, if they’re still working, get an estimate of their future benefits.

So how do you sign up? Just go here and click on “Create an Account.” You can only create an account for yourself. And in order to sign up, you’ll need to have a valid email address and a U.S.-based mailing address.

Apply for Social Security Benefits

You can sign up online here to apply for benefits. You can also reach the agency by phone at 1-800-772-1213, or 1-800-325-0778 if you’re deaf or hard of hearing. Additionally, you can apply for benefits in person by paying a visit to your local Social Security office. This site will help you find offices based on your zip code.

Have the following documents on hand when you contact Social Security:

  • Your Social Security card
  • Your original birth certificate
  • Proof of U.S. Citizenship or lawful alien status
  • A copy of your U.S. military service documents if you served prior to 1968
  • A copy of your W-2 forms and, if applicable, your self-employment tax return for last year
  • Your banking information to receive your benefits through direct deposit.

Lastly, to apply for spousal benefits, be sure to include your marriage certificate or your divorce decree, if you’re applying as a divorcee.

The Three-Legged Stool

The old retirement adage says that we should use the three-legged stool approach to prepare for retirement:

  1. Social Security – This is the government’s retirement plan for us. As long as you’re working (to earn the credits required addressed above) and paying taxes, you’re earning Social Security credits. When you retire, you’ll start receiving monthly Social Security income that will continue for as long as you’re alive.
  2. Pensions – This is the form employer retirement plans used to take. They provided a steady monthly paycheck no matter what happened in the market and no matter how long you lived. Because Social Security only covers, on average, 40% of one’s retirement expenses, people leaned on pensions for the rest. The problem today is that the second leg of the three-legged stool is wobbly or gone. Instead of offering pensions, employers are providing 401(k)s and matching contributions, which helps with the third stool.
  3. Personal Savings – So that you have access to money outside of, and beyond, monthly Social Security and pension checks, you need to save on your own. This money is generally invested differently to serve two purposes. First, money invested in liquid money market or savings accounts provides a cushion and access to extra cash in case of emergency. Second, money beyond that can be invested in the market for a high potential return. This is the money you’re comfortable losing.

How to Supplement Your Social Security

According to the Social Security Administration, individuals aged 65 and over in the top quartile for income (an average of $78,180) received only 18% of their income from Social Security. So where does the remaining 82% come from?

1. Enroll in the Personal Pension

Your Personal Pension is backed by insurance companies which guarantee that for every dollar you contribute, you will receive a certain amount of income every month starting when you retire. Unlike an income annuity, the Personal Pension allows you to contribute incrementally, in smaller amounts and at a younger age, similar to the way you’d put aside money in your savings account or 401(k).

2. Purchasing an income annuity

Similar to the Personal Pension, income annuities provide a guaranteed lifetime stream of income during your retirement. However, instead of contributing over time, you pay a lump sum upfront to purchase your annuity from an insurance company. Then, the insurance company sends you a series of payments for the rest of your life.

How Can I Start a Personal Pension?

A Personal Pension is a contract between you and top rated insurance companies. By making contributions to your Personal Pension over time, you develop a portfolio of guaranteed income available in retirement. Blueprint Income offers a Personal Pension account with the lowest minimum, $5,000. After opening an account, you can make subsequent contributions of as little as $100, each of which will increase your pension check.

Here you can see what contributing to a Personal Pension will guarantee you in retirement income. After just a few years in retirement, you’ll have recouped your initial investment, and the rest will be profit.

You can continue with the enrollment process on your own or fill out the information to have one of our specialists follow up with you by starting with the Personal Pension Builder, where you’ll be able to set a goal for how to grow your pension over time. Note that all future contributions are optional, but it’s always great to have a goal.

How Can I Purchase an Income Annuity?

At Blueprint Income, we offer annuities from more than 15 top rated insurance companies. Click below to get real-time personalized quotes.

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From there, you’ll get access to our annuity guides and team of specialists to help you analyze your retirement finances and walk you through the application process.

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Lauren Minches

Lauren Minches

Financial Planning Professional

Lauren is an actuary by training with expertise in retirement, finance, and risk. She writes about annuities to make them easier to understand and evaluate. Her goal is to help people create retirements with more time for living and less time thinking about money.