Workers deciding to retire or just entering their 60s may wonder whether they should start claiming Social Security benef🍌its and at what age. Here are a few key factors to consider in making that decision.

Note: The Social Security Administration's cost of living benefit increase for 2025 is 2.5%.

Minimum Age

The minimum age to claim benefits is 62. However, the longer that recipients delay claiming Social Security, the more that they 澳洲幸运5官方开奖结果体彩网:increase the size of their monthly benefit.

Claiming before full (or normal) retirement age results in a permanently reduced payout. In 2024, the maximum payout of a worker retiring at full retirement age is $3,822.

What Is Full Retirement Age (FRA)?

The amount of the monthly Social Security benefit depends on how much a worker has earned in their lifetime, the year they were born, and the age at which they claim benefits.

A full monthly benefit is achieved by reaching what Social Security considers to be the 澳洲幸运5官方开奖结果体彩网:full retirement age (FRA). FRA was 65 when Social Security began, but it has been raised to 67 for anyone born in 1960 or later.

Calculating Benefits

Assume an individual's FRA is 66. If they start claiming benefits at age 66 and their full monthly benefit is $2,000, they'll get $2,000 monthly.

If they 澳洲幸运5官方开奖结果体彩网:claim benefits at age 62, 48 months early, their benefit will be reduced to 70% of their full monthly benefit—also called the primary insurance amount. The payment will be 30% less per month, or $1,500.

Those who wait until after age 70 to claim benefits will get an extra 8% per year.The longer retirees wait to claim after age 62, the greater the monthly♐ benefit.

Cost-of-Living Adjustment (COLA)

As mentioned, the reduced benefit that results from claiming at age 62 is permanent. However, it can be adjusted upward with annual 澳洲幸运5官方开奖结果体彩网:cost-of-living adjustments (COLAs). For 2025, the COLA is 2.5%.

To compare the benefits that you may receive at different ages, you can use the 澳洲幸运5官方开奖结果体彩网:Social Sꦯecurity Administration (SSA) Early or Late Retirement Calculator, one of several benefits calculators provided by the SSA.

Spousal Benefits

Spouses who didn’t work at a paid job or didn’t earn𝓰 enough credits to qualify for Social Security on their own are eligible to receive benefits that are꧃ based on their spouse’s record starting at age 62.

Spousal benefits will be reduced if the primary recipient takes Social Security before reaching their FRA. The highest spousal benefit one can receive is half of the benef♑it that their spouse is entitled to at their FRA.

While spouses get a lower benefit if they claim before reaching their own FRA, they will nꩵot get a larger spousal benefit by waiting to cla🀅im after their FRA—say, at age 70.

However, a nonworking or lower-earning spouse may get a larger spousal benefit if the w♎orking spouse has🏅 some late-career, high-earning years that boost their benefits.

Death of Spouse

When one spouse dies, the surviving spouse is entitled to receive the higher of their benefit or their deceased spouse’s benefit. If the higher-earning spouse dies first, the surviving, lower-earning spouse will receive a larger Social Security check for life.

If the surviving spouse hasn’t reached their FRA, they will be entitled to prorated amounts starting at age 60. At their FRA, the surviving spouse is entitled to 100% of the deceased spouse’s benefit or their earned benefit, whichever is higher.

Taxes on Social Security Benefits

Social Security benefits may be partially taxable if a recipient's combined income exceeds certain thresholds.

Recipients pay federal income taxes on their benefits if their combined income (50% of benefit amount plus any other earned income) exceeds $25,000 per year filing individually or $32,000 per year filing jointly. Information on the taxation of Social Security benefits is found in Internal Revenue Service (IRS) Publication 915.

For recipients who work and collect Social Security benefits, all or part of their benefits may be temporarily withheld, depending on their earnings. Beforeꦏ full retirement age, recipients can earn up to $22,320 in 2024. After that, $1 will be deducted from their payment for every $2൩ that exceeds the limit.

Individuals who reach full retirement age in 2024 can earn $59,520. For every $3 they earn over the limit, Social Security benefits will be reduced by $1 for money earned in the months before full retirement age. Once full retirement age is reached, no benefits will be withheld.

Timing and Health Coverage

Health insurance coverage can also play a role in deciding when to claim Social Security benefits. Recipients 65 or older must sign up for Medicare Part A and cannot add funds to their 澳洲幸运5官方开奖结果体彩网:health savings account (HSA).

The SSA also cautions that even those who delay receiving Social Security benefits until over 65 might still need 澳洲幸运5官方开奖结果体彩网:to apply for Medicare benefits within three months of turning 65 to avoid paying higher premiums for life for 澳洲幸运5官方开奖结果体彩网:Medicare Part B and Part D.

The Bottom Line

Individuals do not need to apply for 澳洲幸运5官方开奖结果体彩网:Social Security benefits just because they’🍎re retired. Those who can wait until age 70 will ensure the maximum payment💜 for themselves and lock in the maximum spousal benefit.

Thos💧e considering retiring should calculate the income they will need to determine the best course of action. Other factors should also be considered, including expected longevity and whether a spouse will file 🌌for spousal benefits.

When ready, you can apply for benefits online, by phone, or at a local Social Securiဣty office.