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 do not need to be poor or disabled to receive them — they are based on your work history and the age when you start taking them.

The Social Security Administration (SSA) pays these benefits to workers who have reached their full retirement age, to workers who choose to start earlier at age 62, or to workers who delay past their full retirement age. Your full retirement age depends on the year you were born and ranges from 66 to 67 for most people alive today.

You also do not have to stop working to receive benefits, though if you claim before your full retirement age and earn above a certain amount, your monthly payment will be reduced temporarily. Once you reach your full retirement age, you can earn any amount without a reduction.

Key Takeaways

  • You need 40 work credits (roughly 10 years of work) to receive retirement benefits, and the SSA counts credits based on your annual earnings, not the number of jobs you held.
  • Your monthly benefit amount is based on your highest 35 years of earnings, so working longer can increase your payment if recent years had higher income than earlier ones.
  • You can claim as early as age 62, but your monthly payment will be permanently lower than if you wait until your full retirement age or beyond.
  • The SSA sends you a statement showing your estimated benefits at different ages, and you can view it online at ssa.gov or request a paper copy by mail.
  • Married people, divorced people, and surviving family members may also receive benefits based on your work record, even if they did not work enough years themselves.

How work credits and earnings history determine your benefit amount

The SSA measures your work history in work credits, not years of employment. In 2024, you earn one credit for every $1,730 you earn (this amount changes each year), and you can earn up to four credits per year. This means you need roughly $6,920 in annual earnings to get the maximum four credits for a year.

To receive retirement benefits at all, you need 40 work credits total. For most people, this means about 10 years of work, but the years do not have to be recent or consecutive. If you worked for five years in your twenties and then again for five years in your fifties, both periods count toward your 40 credits.

Your actual monthly benefit amount is calculated from your highest 35 years of earnings. The SSA adjusts older earnings for inflation so they are comparable to recent years, then averages them. If you worked fewer than 35 years, the SSA counts the missing years as zero, which lowers your average. This is why working longer — especially if your recent earnings are higher than your earlier ones — can increase your monthly payment.

Claiming age and how it affects your monthly payment

You can claim retirement benefits as early as age 62, but the earlier you claim, the smaller your monthly payment will be for the rest of your life. If your full retirement age is 67 and you claim at 62, your monthly benefit is roughly 30 percent lower than if you waited until 67. If you claim at 70, your benefit is roughly 24 percent higher than at 67.

The SSA calls this the Primary Insurance Amount (PIA) — the payment you receive at your full retirement age. Claiming early reduces it permanently; claiming late increases it permanently. There is no "break-even" age that makes one choice objectively better than another, because it depends on how long you live and what you need the money for now.

If you claim before your full retirement age and continue working, the SSA will reduce your benefit by $1 for every $2 you earn above a yearly limit (in 2024, that limit is $23,400, but it changes annually). Once you reach your full retirement age, this earnings limit no longer applies, and you receive your full benefit no matter how much you work.

How to check your earnings record and request a benefit estimate

The SSA maintains a record of all your reported earnings under your Social Security number. You can view this record and see an estimate of your retirement benefits by creating an account at ssa.gov and signing into "my Social Security." You will see your earnings history year by year, any years the SSA has no record for, and estimated monthly benefits if you claim at 62, at your full retirement age, or at 70.

If you do not use the online portal, you can request a paper statement by calling the SSA at 1-800-772-1213 (TTY 1-800-325-0778) or by visiting a local Social Security office. The SSA will mail you a statement showing your earnings record and benefit estimates. This usually takes two to four weeks.

Check your earnings record for errors, especially if you changed your name, worked under a different name, or had an employer who did not report your wages correctly. If you find an error, you can report it to the SSA with documentation (such as old tax returns or W-2 forms). Correcting errors can significantly increase your benefit, so it is worth doing before you claim.

Benefits for spouses, ex-spouses, and family members

If you are married, your spouse may receive a benefit based on your work record even if they did not work enough years to may have access to on their own. A spouse can receive up to 50 percent of your full retirement age benefit if they wait until their own full retirement age to claim. If they claim earlier, the percentage is lower.

If you are divorced and were married for at least 10 years, you may be able to receive benefits on your ex-spouse's record without affecting their benefits or requiring their permission. You must be at least 62 years old and not currently married (with limited exceptions). Your ex-spouse does not have to have claimed benefits yet for you to do so.

Surviving family members — including children under 19 (or 23 if in high school full-time), a surviving spouse at any age if caring for your child under 16, and a surviving spouse age 60 or older — may receive benefits based on your work record if you die. These are separate from your retirement benefits and do not reduce what you receive while living.

What happens to your benefits if you work after claiming

If you claim retirement benefits before your full retirement age and continue working, your benefits will be temporarily reduced based on your earnings. The SSA reduces your benefit by $1 for every $2 you earn above the annual limit. In the year you reach your full retirement age, the limit is higher, and the reduction applies only to earnings before the month you reach that age.

Once you reach your full retirement age, the earnings limit disappears entirely. You can earn any amount without any reduction to your benefit. The SSA will also recalculate your benefit at that point to account for the months your payment was reduced, which may increase your future monthly amount slightly.

If you claimed early and later decide you want a higher benefit, you have limited options. You can request to withdraw your claim within 12 months of claiming and repay all benefits received, which restarts your claim as if you had never filed. After 12 months, you cannot withdraw, but you can suspend your benefits at your full retirement age, which stops payments but allows your benefit to grow until you restart it later.

Medicare and how it connects to Social Security retirement

You become may be able to access for Medicare at age 65, regardless of whether you have claimed Social Security retirement benefits. Medicare is a separate health insurance program, not a retirement benefit. You must sign up for Medicare during your enrollment period, which begins three months before the month you turn 65.

If you claim Social Security retirement benefits before age 65, the SSA will automatically enroll you in Medicare Parts A and B when you turn 65, unless you tell them not to. If you are still working and have health coverage through your employer, you may want to delay Medicare enrollment to avoid paying premiums for coverage you do not need. You can do this by telling the SSA in writing that you want to delay.

If you do not claim Social Security benefits before age 65, you still need to sign up for Medicare separately. You can do this online at medicare.gov, by calling 1-800-MEDICARE, or by visiting a Social Security office.

Frequently Asked Questions

What if I worked in another country — does that count toward my 40 credits?

Work in most countries does not count toward Social Security credits. However, the United States has totalization agreements with about 30 countries that allow work in those countries to count. You would need to contact the SSA directly with information about where and when you worked to learn about your foreign work counts.

Can I change my mind after I start receiving benefits?

Within 12 months of claiming, you can withdraw your claim and repay all benefits received. This restarts your claim from scratch, and your benefit will be higher when you claim again. After 12 months, you cannot withdraw, but you can suspend your benefits at your full retirement age, which stops payments while your benefit grows by roughly 8 percent per year until you restart it.

What if the SSA has no record of some years I worked?

Contact the SSA with documentation of that work, such as old W-2 forms, tax returns, or a letter from your employer. The SSA can add missing earnings to your record if you provide proof. This can increase your benefit significantly, so it is worth investigating if you notice gaps in your earnings history.

Do I have to claim at my full retirement age, or can I choose any age?

You can claim any time between age 62 and 70 (or later). There is no requirement to claim at your full retirement age. Claiming earlier gives you smaller monthly payments but more total payments over time if you live an average lifespan. Claiming later gives you larger monthly payments but fewer total payments.

Will my benefit be reduced if I receive a pension from a job where I did not pay Social Security taxes?

Possibly. If you receive a pension from work where you did not pay Social Security taxes (such as some government jobs), two rules may reduce your Social Security benefit: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The SSA can tell you whether these rules explore to your specific situation.