Think You’ll Claim Social Security in 2024? Do These Things Now.

There are some key items you’ll need to tackle first.

Given that we’re already about a week into November, it’s not too soon to be making different plans for 2024. And one of those plans on your part may be to sign up for Social Security. Before you do, though, make sure to tackle these important tasks.

1. Figure out your full retirement age

Full retirement age, or FRA, is when you’re entitled to your complete monthly Social Security benefit based on your personal earnings history. FRA hinges on your year of birth, and you can use this table to see what yours is.

YEAR OF BIRTH	FULL RETIREMENT AGE
1943-1954	66
1955	66 and 2 months
1956	66 and 4 months
1957	66 and 6 months
1958	66 and 8 months
1959	66 and 10 months
1960 or later	67

DATA SOURCE: SOCIAL SECURITY ADMINISTRATION. You should know that you’re allowed to sign up for Social Security well ahead of FRA. In fact, you can start to receive benefits as early as age 62. But you should also know that filing for Social Security ahead of FRA will mean having to accept a reduced monthly payout for life. Incidentally, due to an impending funding shortfall, Social Security may be forced to slash benefits universally in about 10 years’ time unless lawmakers manage to find a way to avoid that scenario. You may not want to reduce your benefits even further by claiming them early. So at the very least, make sure you know your FRA before signing up.

2. Get an estimate of your monthly benefit

You may be expecting a certain monthly payout from Social Security only to actually be in line for a much smaller one. That’s why it’s a good idea to get an estimate of your monthly benefit. You can do so by creating an account on the Social Security Administration’s website and accessing your most recent earnings statement. Let’s say you discover that you’re in line for a much smaller monthly benefit than expected. Even if you’re reaching FRA in time to file, you should know that it’s possible to boost your monthly benefit for life by delaying your Social Security claim past FRA. So if you’re not pleased with the number you see on screen, you can consider postponing your filing beyond 2024, even if your plan is to sign up next year.

3. Decide if you’ll continue to work or not in the new year

Working and collecting Social Security at the same time is allowed. But if you do so before having reached FRA, you’ll risk having some of your Social Security income withheld. So let’s say you intend to claim Social Security next year but you’re only 63. That means you’ll be subject to an earnings-test limit. If your wages in 2023 exceed $22,320 for the year, or $1,860 per month, then you’ll risk having $1 in Social Security held back per $2 of earnings. That money won’t be lost forever — you’ll get it back once you reach FRA. But you won’t get it immediately. So it’s a good idea to figure out if you intend to continue working before claiming Social Security if you won’t be at FRA yet. The idea of collecting Social Security in the near term may be exciting. But before you prepare to file for benefits, make sure to check these essential items off your list.