What Social Security Provides When You Turn 62
Social Security gives you a monthly payment once you reach retirement age. The amount depends on how much you earned during your working years and when you start taking it. You can begin receiving payments as early as age 62, but the monthly amount will be smaller than if you wait. If you wait until age 67 or 70, your monthly payment grows larger.
The payment comes directly to your bank account each month for the rest of your life. It does not run out, and it does not depend on how much money you have saved. Social Security is separate from Medicare, which covers health insurance — you handle those two programs independently.
Key Takeaways
- You can start receiving Social Security payments at age 62, but waiting until 67 or 70 increases your monthly amount.
- Your payment is based on your earnings record, not on your savings or current income.
- You must contact Social Security directly to start your payments; they do not contact you automatically.
- Married couples can coordinate when each person starts to maximize household income over time.
- Your payment adjusts each year for inflation, a change called a cost-of-living adjustment.
When You Can Start Taking Payments
Social Security defines your full retirement age based on your birth year. For people born in 1943 through 1954, full retirement age is 66. For people born in 1955 through 1960, it rises gradually from 66 and 2 months to 67. For people born in 1960 or later, full retirement age is 67.
You can claim as early as 62, but your monthly payment will be about 30 percent lower than it would be at full retirement age. If you wait until 70, your payment grows by about 8 percent per year beyond full retirement age. This means a person who waits from 67 to 70 receives roughly 24 percent more per month than they would have at 67.
The choice between claiming early, at full retirement age, or later depends on your health, your savings, and how long you expect to live. There is no single right answer — it is a personal decision based on your situation.
How Your Payment Amount Is Calculated
Social Security looks at your 35 highest-earning years of work. It averages those earnings and adjusts them for inflation to calculate your primary insurance amount — the payment you would receive at full retirement age. If you worked fewer than 35 years, Social Security counts zero-earning years, which lowers your average.
You must have worked at least 10 years (40 quarters) to receive any payment on your own record. A quarter is roughly three months of work in which you earned a minimum amount — the threshold changes each year but is usually around $1,550 per quarter in 2024.
If you were married for at least 10 years and are now divorced, widowed, or still married, you may be able to receive a payment based on your spouse's earnings record instead of your own, if that amount is higher. This is called a spousal benefit.
The Steps to Start Receiving Payments
You must contact Social Security yourself to begin your payments. They do not start automatically when you turn 62 or reach full retirement age. You can explore online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office.
When you explore, have your Social Security number, birth certificate, and proof of citizenship or legal residency ready. If you are explore for a spousal or survivor benefit, you will also need your marriage certificate or divorce decree. Social Security will ask about your work history and your plans for the future.
Processing usually takes two to four weeks. Once approved, your first payment arrives the month after you become may have access to to it. Payments come on the same day each month — usually the second, third, or fourth Wednesday, depending on your birth date.
How Payments Change Over Time
Each January, Social Security increases all payments by a percentage called the cost-of-living adjustment, or COLA. This adjustment reflects inflation and is the same for all beneficiaries that year. In recent years, adjustments have ranged from less than 1 percent to more than 8 percent, depending on inflation.
Your payment may also change if you continue working after you start receiving benefits. If you earn above a certain amount before reaching full retirement age, Social Security temporarily reduces your payment — about $1 for every $2 you earn above the limit. Once you reach full retirement age, this limit no longer applies, and your payment increases to account for the months it was reduced.
If you are married and both of you receive Social Security, each payment is calculated separately based on each person's earnings record. Your spouse's payment does not affect yours.
Taxes on Your Social Security Income
Depending on your total income, part of your Social Security payment may be taxable. The IRS uses a formula based on your combined income — your adjusted gross income plus nontaxable interest plus half your Social Security benefit. If your combined income exceeds certain thresholds, up to 50 percent or 85 percent of your benefit becomes taxable income.
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 benefit. If it exceeds $34,000, up to 85 percent becomes taxable. For married couples filing jointly, the thresholds are $32,000 and $44,000.
Social Security sends you a form called a 1099-SSA each January showing how much you received the previous year. You report this on your tax return. Many people find it helpful to have taxes withheld from their Social Security payment each month rather than paying a large amount at tax time — you can request this through Social Security.
What Happens to Your Benefits If You Work
If you claim Social Security before full retirement age and continue working, your earnings may reduce your payment temporarily. For 2024, if you earn more than $23,400 before reaching full retirement age, Social Security reduces your benefit by $1 for every $2 over that limit.
In the year you reach full retirement age, the limit is higher — $62,160 — and applies only to earnings before the month you reach full retirement age. Once you reach full retirement age, you can earn any amount without affecting your payment.
This earnings test is temporary. It does not permanently lower your benefit. When you reach full retirement age, Social Security recalculates your payment to account for the months it was reduced, and your payment increases accordingly.
Frequently Asked Questions
Can I change my mind after I start receiving Social Security?
Yes, but only within limits. If you are within 12 months of claiming, you can withdraw your process and repay what you received, then reapply later at a higher amount. After 12 months, you cannot withdraw. You can request a one-time increase at age 70 if you claimed early, but the rules are strict and you should contact Social Security directly to explore this option.
What happens to my benefits if I move out of the country?
You can receive Social Security payments while living in most countries. However, some countries have restrictions. Contact Social Security before you move to confirm your payments will continue. You may need to report your location or provide proof that you are still alive.
Do I need to report my income to Social Security each year?
If you are under full retirement age and still working, you should report your earnings to Social Security so they can adjust your payment correctly. You can report online, by phone, or by mail. If you are at full retirement age or older, you do not need to report earnings.
What if I was never married but my ex-spouse claims a spousal benefit on my record?
If you were married for at least 10 years and are now divorced, your ex-spouse can receive a benefit based on your earnings record without affecting your payment. You do not need to agree or even know about it. Your payment remains the same whether or not they claim.
Can my adult child receive benefits on my Social Security record?
Yes, if your child is under 19 (or under 23 if in school full-time) or disabled. Family members can receive up to 50 percent of your full retirement age benefit, but the total paid to your whole family has a limit. Contact Social Security to learn whether your child qualifies and how much they could receive.