How Social Security benefits work

Social Security sends you a monthly payment based on your work history and age. The amount depends on how much you earned during your working years and when you start taking payments. If you worked for at least 10 years and paid Social Security taxes, you have built up credits toward a benefit.

You do not have to do anything to "earn" the benefit once you have worked those years — the credits stay with you. But you do have to take a step to start receiving payments. The age you choose to start, your life circumstances, and your health situation all affect how much you receive each month and for how long.

Key Takeaways

  • Social Security retirement benefits start as early as age 62, but waiting until 67 or 70 increases your monthly payment significantly.
  • Your benefit amount is based on your highest 35 years of earnings, so working longer can raise the amount you receive.
  • Spouses and ex-spouses may receive payments based on your work record, even if they did not work enough years themselves.
  • You can work part-time after you start receiving benefits, though earnings before your full retirement age may reduce your monthly payment.
  • The Social Security Administration can tell you your estimated benefit amount before you decide when to start.

Retirement benefits at different ages

You can start receiving retirement benefits as early as age 62. If you do, your monthly payment will be smaller than if you wait. For every year you delay past age 62, your benefit grows — this continues until age 70, after which it does not increase further.

Your full retirement age depends on the year you were born. If you were born between 1943 and 1954, your full retirement age is 66. If you were born in 1960 or later, it is 67. At your full retirement age, you receive 100 percent of your benefit amount. Before that age, you receive less. After that age, you receive more — about 8 percent more for each year you wait, up to age 70.

The choice between starting early and waiting is personal. Some people need the money sooner. Others live longer and receive more total money by waiting. The Social Security Administration publishes a "break-even" calculator on their website that shows when waiting pays off based on your age and health.

Survivor and family benefits

If you die, your family members may receive monthly payments based on your work record. Your spouse at any age can receive a benefit if they are caring for your child under age 16. Your spouse at age 60 or older can receive a reduced benefit, or at your full retirement age can receive 100 percent of what you would have received.

Your children under age 19 (or up to age 23 if still in high school full-time) can each receive a benefit. Your ex-spouse can receive a benefit if you were married for at least 10 years, even if you have remarried, as long as they are at least 62 years old or caring for your child under 16.

The total amount paid to your family is capped at about 150 to 180 percent of your benefit amount, depending on how many family members receive payments. This means each person's share may be smaller if many family members are receiving benefits.

Disability and illness benefits

If you become unable to work due to a medical condition that is expected to last at least 12 months or result in death, you may receive Social Security Disability Insurance (SSDI). You do not have to reach retirement age to receive this benefit — you can receive it at any age if you meet the medical and work-history requirements.

The amount you receive is based on your earnings record, similar to retirement benefits. Your family members — spouse, ex-spouse, and children — may also receive payments based on your work record while you receive disability benefits.

If you are 65 years old, your disability benefit automatically converts to a retirement benefit at the same monthly amount. There is no separate step you need to take — the Social Security Administration handles the change.

Supplemental Security Income (SSI) for low income

Supplemental Security Income (SSI) is different from Social Security retirement or disability benefits. SSI is a needs-based program for people age 65 or older, or any age if you are blind or disabled, and have very limited income and resources.

To receive SSI, your monthly income must be below a certain amount (which varies by state) and your savings and assets must be under a limit set by the federal government. Unlike Social Security, which is based on work history, SSI is based on financial need. You can receive both Social Security and SSI at the same time if your Social Security payment is small enough.

SSI payments are typically smaller than Social Security retirement benefits. The exact amount depends on your state, your living situation, and your other income. Some states add extra money to the federal SSI payment.

How your benefit amount is calculated

The Social Security Administration looks at your highest 35 years of earnings to calculate your benefit. They adjust older earnings for inflation so that earnings from different decades are compared fairly. If you worked fewer than 35 years, they count zeros for the missing years, which lowers your average.

This is why working longer can increase your benefit — if you work past 35 years, your new earnings replace one of your lowest-earning years. If you took time out of the workforce to raise children or care for a family member, those years count as zeros unless you have other credits that help offset them.

The Social Security Administration publishes your earnings record online through their website. You can create an account, log in, and see exactly what they have on file for you. If you spot an error — a missing year, an employer who did not report your wages — you can request a correction. Errors are more common than many people realize, and fixing them can raise your benefit.

Working while receiving benefits

You can work part-time or full-time after you start receiving Social Security benefits. However, if you have not yet reached your full retirement age and you earn above a certain amount, your benefit payment will be reduced. In 2024, if you earn more than $23,400 per year before your full retirement age, Social Security reduces your benefit by $1 for every $2 you earn above that limit.

Once you reach your full retirement age, you can earn as much as you want with no reduction to your benefit. The earnings limit applies only to the months before you reach full retirement age, not after.

If you are still working and have not yet started Social Security, you may want to check your estimated benefit on the Social Security website. Working additional years can increase your benefit, especially if those years have higher earnings than the years already in your record.

Frequently Asked Questions

What is the difference between Social Security and SSI?

Social Security is based on your work history and taxes you paid. SSI is based on financial need and is available to people with very low income and resources, regardless of work history. You can receive both at the same time if your Social Security payment is small enough to meet SSI income limits.

Can I change my mind after I start receiving benefits?

You can request to stop your benefits and restart them later at a higher amount, but only within specific time limits. If you have been receiving benefits for less than 12 months, you can request a "withdrawal" and repay what you received. After 12 months, you cannot withdraw, but you may be able to suspend your benefits at full retirement age and restart them later at a higher rate.

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

You can receive Social Security benefits while living in most countries. However, some countries have restrictions. If you plan to move abroad, contact the Social Security Administration before you leave to understand how your benefits will be affected and what documentation you may need to provide.

How do I find out what my benefit will be?

Create a free account on the Social Security Administration website to view your estimated benefit amount. You can see estimates for different ages — 62, 67, and 70 — to compare how much you would receive if you started at each age. You can also call Social Security or visit a local office to request this information.

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

Yes. A spouse age 62 or older can receive a benefit based on your work record, even if they have no work history of their own. A spouse of any age can receive a benefit if they are caring for your child under age 16. The benefit is typically 32 to 50 percent of your full retirement age benefit amount, depending on their age and your situation.