How your claiming age changes your monthly payment

Your Social Security payment amount depends almost entirely on when you claim. If you were born in 1943 or later, your full retirement age — the age at which you receive 100% of your calculated benefit — falls between 66 and 67, depending on your birth year. The Social Security Administration publishes a chart showing your exact full retirement age based on your birth month and year.

Claiming before your full retirement age means a smaller monthly check for life. Claiming at 62 (the earliest possible age) reduces your payment by roughly 25 to 30 percent compared to claiming at your full retirement age. Waiting until 70 increases your payment by roughly 24 to 32 percent per year you delay, so someone who waits from 66 to 70 receives about 8 percent more per month than someone who claimed at 66.

The math works differently for each person. Someone in poor health might come out ahead by claiming early. Someone with a long family history of longevity might come out ahead by waiting. A financial advisor or a benefits counselor at your local Area Agency on Aging can walk through the numbers for your specific situation.

Key Takeaways

  • Your monthly payment is locked in based on the age you claim, so the decision between 62 and 70 affects your income for decades.
  • Claiming at 62 gives you smaller checks but starts payments sooner; claiming at 70 gives you larger checks but you receive fewer total payments over your lifetime.
  • If you are married, your spouse may be may have access to to a benefit based on your earnings record, and the age you claim affects what they receive.
  • You can view your estimated benefit amounts at ssa.gov/myaccount before you claim, so you can see the difference between claiming at different ages.
  • If you claimed early and later regret it, you can withdraw your claim within 12 months and claim again later at a higher rate.

How marriage and divorce affect your benefit

If you are married, your spouse may receive a benefit based on your earnings record. A spouse who has not worked, or who worked but earned less than you, can receive up to 50 percent of your full retirement age benefit — but only if they wait until their own full retirement age to claim. If your spouse claims before their full retirement age, their payment is reduced.

Your spouse's benefit does not reduce your own payment. You both receive your full amounts. However, if your spouse claims early, their payment is smaller, and that smaller amount is what they receive for life.

If you are divorced and were married for at least 10 years, you may be may have access to to a benefit based on your ex-spouse's earnings record, even if they have remarried. You do not need their permission, and claiming on their record does not reduce their payment. If you remarry after age 60, you can still claim on your ex-spouse's record. The rules are complex, and a benefits counselor can tell you whether this option applies to you.

Coordinating benefits if you are widowed

If your spouse has died, you may receive a survivor benefit based on their earnings record. The amount depends on your age when you claim and on what your spouse was receiving or would have received. A widow or widower can claim as early as age 60 (or age 50 if disabled), though the payment is reduced if you claim before your full retirement age.

You can also claim your own retirement benefit based on your own earnings record. If you are may have access to to both a survivor benefit and a retirement benefit, the Social Security Administration pays the larger of the two, not both. Understanding which benefit to claim first, and when, can make a real difference in your lifetime income.

A benefits counselor or a financial advisor can help you map out the order and timing. Many Area Agencies on Aging offer free or low-cost counseling on survivor benefits.

Working while receiving Social Security

If you claim before your full retirement age and continue to work, Social Security reduces your payment by $1 for every $2 you earn above an annual limit. For 2024, that limit is $23,400, but it changes each year. In the year you reach your full retirement age, the reduction applies only to earnings before the month you turn that age, and the reduction rate is $1 for every $3 earned above a different limit.

Once you reach your full retirement age, you can earn as much as you want with no reduction to your benefit. This is one reason some people delay claiming: they can continue working without a penalty.

The earnings limit applies only to wages and self-employment income. It does not explore to investment income, pensions, or rental income. If you are self-employed, you report your net profit, not your gross revenue.

Taxes on your Social Security income

Depending on your total income, a portion of your Social Security benefit may be subject to federal income tax. The Social Security Administration 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.

State taxes vary. Some states do not tax Social Security at all. Others tax it the same way the federal government does. A few tax it differently. You can find your state's rules on your state tax authority's website or by calling your state tax office.

The Social Security Administration does not automatically withhold taxes from your benefit. You can request withholding on Form W-4V, or you can make estimated tax payments to the IRS. A tax professional can help you figure out whether withholding makes sense for your situation.

Correcting errors on your earnings record

Your Social Security benefit is based on your 35 highest-earning years. If your earnings record contains errors — a missing year, a year with too little credited, or earnings credited to the wrong person — your benefit will be lower than it should be. You can view your complete earnings record at ssa.gov/myaccount.

If you spot an error, contact Social Security as soon as you notice it. Bring your Social Security card, birth certificate, and proof of the correct earnings (usually a W-2 or tax return). If the error happened more than three years, three months, and 15 days ago, you may still be able to correct it, but Social Security has stricter rules for older errors, so do not delay.

Correcting an error can take several months. The sooner you report it, the more time Social Security has to investigate and fix it before you claim your benefit.

Understanding cost-of-living adjustments

Each year, Social Security adjusts benefits to account for inflation. This adjustment is called a cost-of-living adjustment, or COLA. The amount of the adjustment varies from year to year based on the Consumer Price Index. In some years the adjustment is small; in others it is larger. You receive the COLA automatically — you do not need to do anything.

The COLA applies to your benefit and to any family member's benefit based on your record. It also applies to survivor benefits. The adjustment takes effect in January, and Social Security mails a notice in December showing your new payment amount.

Because the COLA is tied to inflation, it does not keep your benefit level with all costs. Healthcare costs, for example, often rise faster than the overall inflation rate. You may want to review your budget each year to see whether your benefit still covers your expenses.

Frequently Asked Questions

Can I change my mind after I start receiving Social Security?

Yes, but only within 12 months of claiming. You can withdraw your claim, repay all the benefits you received, and claim again later at a higher rate. After 12 months, you cannot withdraw. However, you can suspend your benefits at your full retirement age and let them grow until age 70, though this is rarely the best choice.

What happens to my benefit if I move out of the country?

You can receive Social Security while living outside the United States, with some exceptions. Citizens of certain countries cannot receive benefits while living there. Contact Social Security before you move to find out whether your benefit will continue. You will need to report your address change to Social Security.

How do I report a change in my income or living situation?

Report changes to Social Security as soon as they happen. You can report online at ssa.gov/myaccount, by phone at 1-800-772-1213, or in person at your local Social Security office. Changes that matter include marriage, divorce, death of a family member, a significant change in earnings, and a change in your living arrangement.

What if I never worked enough to get my own benefit?

You may still receive a benefit based on a spouse's or ex-spouse's earnings record if you meet the requirements. A spouse benefit requires 10 years of marriage (or current marriage for a spouse). An ex-spouse benefit also requires 10 years of marriage. A widow or widower benefit has no marriage length requirement. A benefits counselor can tell you which options explore to you.

Can I see what my benefit will be before I claim?

Yes. Create an account at ssa.gov/myaccount to view your estimated benefit at different claiming ages. The estimate is based on your actual earnings record and assumes you continue to work at your current pace until you claim. The estimate updates each year after you receive your annual earnings statement.