What Social Security retirement benefits are and who receives them

Social Security retirement benefits are monthly payments from the federal government to people who have worked and paid Social Security taxes for a certain number of years. You become a retiree may be able to access to receive these payments once you reach a specific age — that age depends on when you were born. Most people born in 1960 or later have a full retirement age of 67, though you can claim as early as 62 or as late as 70.

The amount you receive each month is based on your earnings history. The Social Security Administration (SSA) looks at your highest 35 years of earnings, adjusts them for inflation, and calculates a benefit amount. If you worked fewer than 35 years, they count zeros for the missing years, which lowers your benefit. You must have earned at least 40 credits — roughly 10 years of work — to be may have access to to retirement benefits at all.

Your spouse, ex-spouse, and adult children may also receive benefits based on your work record, even if they never worked themselves. A spouse can receive up to 50 percent of your full retirement benefit, and unmarried children under 19 (or 19 if still in high school) can receive up to 75 percent of your benefit each.

Key Takeaways

  • You must have worked at least 10 years and paid Social Security taxes to receive retirement benefits, and the amount depends on your highest 35 years of earnings.
  • Your full retirement age is 67 if you were born in 1960 or later, but you can claim as early as 62 or delay until 70 — claiming early reduces your monthly payment permanently.
  • If you claim at 62, your benefit is roughly 30 percent lower than if you wait until 67, and about 50 percent lower than if you wait until 70.
  • Your spouse, ex-spouse, and minor children may receive benefits based on your work record without having worked themselves.
  • You can work while receiving benefits after full retirement age without any reduction, but earnings before that age reduce your benefit temporarily.

When you can claim and how claiming age affects your payment

The earliest you can claim Social Security retirement benefits is age 62. However, claiming before your full retirement age means your monthly payment is permanently reduced. If your full retirement age is 67 and you claim at 62, you receive roughly 70 percent of what you would get at 67. That reduction stays in place for the rest of your life — it does not increase back to the full amount once you turn 67.

If you wait until your full retirement age (67 for most people born after 1960), you receive 100 percent of your calculated benefit. If you delay claiming past your full retirement age, your benefit grows by about 8 percent per year until age 70. Someone who waits until 70 receives roughly 24 percent more per month than someone who claims at 67.

The choice between claiming early, at full retirement age, or late depends on your health, life expectancy, and financial needs. Someone in poor health may come out ahead by claiming at 62, because they collect more total payments over a shorter lifetime. Someone in good health who expects to live into their 80s or 90s may receive more total money by waiting until 70, even though the monthly payment is higher but collected for fewer years.

How your earnings affect benefits before and after full retirement age

If you claim Social Security before your full retirement age and continue to work, your benefits are reduced based on your earnings. For 2024, the SSA reduces your benefit by $1 for every $2 you earn above $23,400 per year. This reduction applies only in the year you claim and in years before you reach full retirement age. Once you reach full retirement age, you can earn any amount without any reduction to your benefit.

The earnings limit applies only to wages and self-employment income — it does not include investment income, pensions, or other retirement payments. If you are self-employed, you report your net earnings from self-employment on your tax return, and that figure is what counts toward the limit.

In the year you reach full retirement age, the reduction changes. For earnings in months before you reach full retirement age, the SSA reduces your benefit by $1 for every $3 you earn above $62,400 (the 2024 limit). Once the month you reach full retirement age arrives, no reduction applies, regardless of earnings.

How to claim Social Security retirement benefits

You can claim Social Security retirement benefits online through the SSA website at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. You do not have to wait until you turn 62 to start the process — you can create an account and begin the claim up to four months before you want benefits to start.

When you claim, you will need to provide proof of age (a birth certificate or passport), proof of citizenship or legal residency (a passport or naturalization papers), and your W-2 forms or tax returns from the past two years. If you are married and your spouse plans to claim on your record, they will need to provide the same documents. If you are claiming as a divorced spouse, you will need your divorce decree and proof of the marriage.

After you submit your claim, the SSA typically makes a decision within 2 to 3 weeks. You will receive a letter in the mail explaining whether your claim was approved and when your first payment will arrive. Most people receive their first payment within one to two months of approval.

Medicare and other benefits that come with Social Security

When you claim Social Security retirement benefits, you become may have access to to Medicare — the federal health insurance program for people 65 and older. You are automatically enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance) when you turn 65, even if you have not yet claimed Social Security. However, if you claim Social Security before 65, your Medicare enrollment happens at the same time.

Medicare Part A covers hospital stays, skilled nursing care, and hospice. Part B covers doctor visits, outpatient care, and preventive services. Both have deductibles and copayments. You can also choose to enroll in a Medicare Advantage plan (Part C), which is an alternative way to receive Parts A and B coverage through a private insurance company, or add prescription drug coverage (Part D).

If you are still working when you turn 65, you may be able to delay Medicare enrollment without penalty if your employer offers health insurance and you are covered under it. However, once you leave that job or lose that coverage, you have a limited window to enroll in Medicare without paying a late enrollment penalty.

Taxes on Social Security benefits

Depending on your total income, a portion of your Social Security benefits may be subject to federal income tax. The SSA 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 exceeds certain thresholds, you may owe tax on up to 85 percent of your benefits.

For 2024, if you file as single and your combined income is between $25,000 and $34,000, you may owe tax on up to 50 percent of your benefits. If your combined income exceeds $34,000, you may owe tax on up to 85 percent. For married couples filing jointly, the thresholds are $32,000 and $44,000. These thresholds have not changed since 1984, so more retirees are affected each year as incomes rise.

Some states do not tax Social Security benefits at all. Other states tax benefits the same way the federal government does, or use their own thresholds. Check your state's tax rules or speak with a tax professional to understand your specific situation.

What happens to your benefits if you work after claiming

If you claim Social Security before your full retirement age and return to work, your benefit is reduced based on your earnings, as described above. However, the SSA keeps track of the months in which you did not receive a full benefit due to earnings, and it recalculates your benefit amount once you reach full retirement age to account for those months. This recalculation is called a "deemed filing adjustment," and it typically results in a slightly higher benefit at full retirement age.

If you claim at your full retirement age or later, you can work and earn any amount without any reduction to your benefit. Your benefit amount does not change based on continued work after full retirement age, unless you have not yet reached 70 and are still earning enough to add a new high-earning year to your record. In that case, the SSA may recalculate your benefit upward if one of your recent earnings years replaces a lower-earning year in your top 35.

Frequently Asked Questions

Can I change my mind after I claim Social Security?

Yes, but only within limits. If you claimed within the past 12 months, you can withdraw your claim and reapply later — however, you must repay all benefits you received. If more than 12 months have passed, you cannot withdraw your claim, but you can suspend your benefits once you reach full retirement age and let them grow until age 70.

What if I was married more than once — can I claim on more than one ex-spouse's record?

No. If you are divorced and have been unmarried for at least two years, you can claim on an ex-spouse's record if that marriage lasted at least 10 years. However, you can claim on only one ex-spouse's record, even if you were married to multiple people for 10 years or longer. You should claim on whichever record gives you the highest benefit.

Do I lose my Social Security if I move out of the United States?

You can receive Social Security benefits while living in most countries. However, if you are not a U.S. citizen, there are restrictions — you must have lived in the U.S. for at least five years and be in a country where the SSA can send payments. Some countries have no agreement with the SSA, and citizens of those countries cannot receive benefits while living there. Contact the SSA before you move to confirm your situation.

What is the difference between Social Security retirement and Social Security Disability Insurance?

Social Security Disability Insurance (SSDI) is for people under full retirement age who have a medical condition expected to last at least 12 months and prevent them from working. Retirement benefits are for people who have reached claiming age and have worked the required number of years. The benefit amounts and rules are different, and you cannot claim both at the same time.

Can my spouse claim benefits on my record if they never worked?

Yes. A spouse who has never worked can claim up to 50 percent of your full retirement benefit once they reach age 62 (or full retirement age if they want the full 50 percent). They do not need a work history of their own. However, if they claim before their full retirement age, their benefit is reduced, just as yours would be.