What Social Security retirement benefits are and when you can claim them
Social Security retirement benefits are monthly payments from the federal government, funded through payroll taxes you and your employer have paid over your working years. The amount you receive depends on your earnings history and the age at which you claim.
You can claim retirement benefits as early as age 62, but your monthly payment will be smaller than if you wait. If you wait until your full retirement age — which ranges from 66 to 67 depending on your birth year — you receive your full benefit amount. If you delay claiming until age 70, your monthly payment increases by about 8 percent for each year you wait past your full retirement age.
To receive any retirement benefits, you must have worked and paid Social Security taxes for at least 10 years (40 quarters). You do not need to be retired from work to claim benefits, though your earnings before full retirement age can reduce your monthly payment temporarily.
Key Takeaways
- You can claim Social Security retirement benefits at 62, but waiting until your full retirement age or age 70 results in a larger monthly payment.
- Your benefit amount is based on your 35 highest-earning years of work, adjusted for inflation.
- You must have worked and paid Social Security taxes for at least 10 years to receive any retirement benefits.
- If you work before reaching your full retirement age, some of your benefits may be temporarily withheld, though this does not reduce your future payments.
- You can view your earnings record and estimated benefit amounts on your Social Security account at ssa.gov.
How your benefit amount is calculated
The Social Security Administration uses your 35 highest-earning years to calculate your benefit. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your average. Your earnings are adjusted for inflation using a national wage index, so older earnings are brought up to reflect what they would be worth in current dollars.
Once your average monthly earnings are calculated, a formula is applied that gives you a higher percentage of your lower earnings and a lower percentage of your higher earnings. This formula is designed to replace a larger share of income for workers who earned less.
You can view your actual earnings record and see an estimate of your retirement benefit by creating an account at ssa.gov. The Social Security Administration also mails a statement to workers age 60 and older who do not yet have an online account, though you can request one at any time.
Claiming at 62 versus waiting until full retirement age or 70
Claiming at 62 gives you the smallest monthly payment but lets you start receiving money sooner. The reduction is permanent — even after you reach full retirement age, your payment stays at the reduced amount. For someone born in 1960 or later, claiming at 62 means your benefit is about 30 percent lower than your full retirement age benefit.
Claiming at your full retirement age — 66 for people born between 1943 and 1954, and 67 for those born in 1960 or later — gives you your full benefit amount. People born between 1955 and 1959 have a full retirement age between 66 and 67.
Delaying past your full retirement age increases your benefit by about 8 percent per year until age 70. After 70, your benefit does not increase further, so there is no financial advantage to waiting beyond that age. The choice between these ages depends on your health, life expectancy, family history, and how soon you need the income.
How work affects your benefits before full retirement age
If you claim benefits before reaching your full retirement age and continue working, the Social Security Administration withholds some of your benefits based on your earnings. For 2024, benefits are reduced by $1 for every $2 you earn above $23,400 in the year you claim. In the year you reach full retirement age, the limit is higher and applies only to earnings before the month you turn that age.
This earnings test is temporary. Once you reach your full retirement age, your benefits are no longer reduced regardless of how much you earn. The months during which benefits were withheld are not lost — the Social Security Administration recalculates your benefit at full retirement age to account for the months you did not receive payments, which increases your monthly amount going forward.
Self-employment income, investment income, and pensions do not count toward these earnings limits. Only wages from employment and net self-employment income are considered.
Taxes on your Social Security benefits
Depending on your total income, you may owe federal income tax on part of your Social Security benefits. The Social Security Administration uses a formula based on your "combined income," which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.
If your combined income is below $25,000 (or $32,000 if you are married filing jointly), you owe no tax on your benefits. Above those thresholds, up to 50 percent of your benefits may be taxable, and above higher thresholds, up to 85 percent may be taxable. Each state handles taxation of Social Security benefits differently — some states do not tax benefits at all, while others tax them the same way the federal government does.
The Social Security Administration does not automatically withhold taxes from your benefits, so you may need to make estimated tax payments or request withholding from your benefit check.
Spousal and survivor benefits tied to your retirement record
If you are married, your spouse may be able to claim a benefit based on your earnings record, even if they did not work or worked very little. A spouse can claim up to 50 percent of your full retirement age benefit if they have reached their own full retirement age, or a reduced amount if they claim earlier. This is separate from any benefit your spouse earned through their own work history.
If you are divorced and were married for at least 10 years, you may be able to claim on your ex-spouse's record under the same rules, even if they have not yet claimed benefits themselves. You do not need your ex-spouse's permission.
If you pass away, your surviving spouse, children under 19 (or 19 if still in high school), and dependent parents may receive survivor benefits based on your earnings record. These benefits are paid from the same Social Security trust fund as retirement benefits.
How to claim your retirement benefits
You can claim Social Security retirement benefits online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. You will need documents such as your birth certificate, proof of citizenship or legal residency, and a government-issued photo ID. If you are married and claiming spousal benefits, you will also need your marriage certificate.
The Social Security Administration recommends claiming about four months before you want your benefits to start. Processing typically takes two to three weeks, though it can take longer if documents are missing or if the agency needs to verify information.
Once you claim, your benefits are deposited directly into your bank account each month. You can change your bank account information or update other details through your online account or by contacting the Social Security Administration directly.
Frequently Asked Questions
What happens to my Social Security if I keep working after I claim benefits?
If you have not reached your full retirement age, your benefits are reduced by $1 for every $2 you earn above the annual limit. Once you reach full retirement age, you can earn any amount without losing benefits. The months your benefits were withheld increase your payment amount when you reach full retirement age.
Can I change my mind after I claim benefits?
Yes, but only within specific limits. If you claim and then change your mind within 12 months, you can withdraw your claim, repay all benefits received, and claim again later at a higher amount. After 12 months, you cannot withdraw, but you can suspend your benefits at full retirement age and let them grow until age 70.
How much will I receive in retirement benefits?
Your benefit depends on your earnings history and the age you claim. You can view your personalized estimate by creating an account at ssa.gov. The average retirement benefit in 2024 is around $1,900 per month, but individual amounts vary widely based on work history and claiming age.
Will Social Security be there when I retire?
Social Security is funded by current workers' payroll taxes and is legally required to pay benefits. The trust fund is projected to have enough reserves to pay full benefits through 2034. After that, incoming tax revenue would cover about 80 percent of scheduled benefits unless Congress changes the program.
Do I need to report my income to Social Security after I claim?
If you claim before full retirement age and work, you should report your earnings to Social Security so they can adjust your benefits correctly. You can report earnings online, by phone, or by mail. Failure to report can result in overpayment that you will need to repay.