Planning to apply for Social Security benefits soon? Answer these three questions first.

Before you apply for Social Security benefits, there are some questions you should ask yourself to make sure you don’t regret your decision. Getting answers can help you decide if you’re really ready to move forward or if you should wait a little longer to become a Social Security retiree.

Here are the three big questions you should ask yourself before you even consider moving forward with your benefit application.

1. What is your full retirement age?

Unless you know your full retirement age (FRA), you should not file for Social Security benefits. If you don’t know your FRA, there’s no way to know how your decision to claim benefits will affect your finances for the rest of your life. Your full retirement age is based on the year you were born. The table below shows your FRA so you can answer this crucial question.

Data source: Social Security Administration.

Knowing your FRA lets you know whether you’re currently older, younger, or on track. If you plan to claim Social Security benefits exactly at your full retirement age, you’ll receive your Primary Insurance Amount (PIA). Your PIA is based on a portion of the inflation-adjusted average wage you earned during your 35 peak earning years.

If you plan to file at a different age, that choice could leave you with higher or lower monthly Social Security checks. For any month you receive a payment before FRA, benefits are reduced by early filing penalties. Conversely, for any month through age 70 that you wait to receive a check after FRA, your benefits increase because of the delayed retirement credit.

This can have a significant impact. Let’s say your legal retirement age is 67 and your primary insurance amount is $1,800. Here’s how much you’ll receive each month if you apply at different ages:

• 62: $1,260 (Benefits are reduced by 5/9 of 1% per month for the first 36 months before FRA and by 5/12 of 1% for prior months.)
• 67: $1,800 (You receive your primary insurance amount for a claim against your FRA.)
• 70: $2,232 (Benefits are increased by 2/3 of 1% per month until age 70.)

Given that the difference between the highest and lowest potential benefits is $972, it’s easy to see why it’s so important to know the FRA before filing a claim.

2. How much income will the benefits provide?

Next, you need to answer the question of what exactly Social Security will do to help you achieve financial security. You’ll probably need a retirement income equal to or greater than about 70 to 80 percent of the money you earned at your last job. If your income falls too low, you’ll struggle financially and may even need to make lifestyle changes, such as moving to make ends meet.

You should know that Social Security will not pay you anywhere near the amount you need. You will receive about 40% of your pre-retirement income (higher earners receive less because the benefit formula is progressive). You will have to come up with the rest.

To avoid being surprised by how little your benefits are worth, check your Social Security account online to see estimates at different claiming ages. It’s also a good idea to confirm that your earnings statement is accurate, since that’s what your benefits will be based on.

Once you figure out how much you’ll receive from Social Security, compare it to how much you’ll need to spend to cover your basic needs and accomplish what you hope to do in retirement. When you see the shortfall, make sure your savings can cover it.

3. Will you have to pay taxes on benefits?

The last big question is whether you’ll have to give a share to the IRS or your state.

At the federal level, provisional income determines whether you will be taxed on benefits. Your provisional income is half of Social Security, all taxable income, and some nontaxable income, including municipal bonds.

Once your provisional income is $25,000 for a single taxpayer, you’ll have to pay taxes on 50% of your benefits. If your provisional income is over $34,000, you’ll be taxed on 85% of your benefits. For married couples, the threshold is a bit higher, as you’ll have to pay taxes on 50% of your benefits with a provisional income of $32,000 and on 85% of your benefits with a provisional income of $44,000. If you live in one of the few states that tax Social Security, you may also owe taxes to your local government. Check the tax rules if your state is one of them, as many states exempt a portion of your income from taxes, just like the federal government does.

If you owe taxes to the state or federal government, or both, be prepared for the fact that you will ultimately take home less money than you expected due to taxes.

By making sure you know the answers to these questions, you can make the right choice about social security and are less likely to have regrets.