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Get the facts about retirement benefits and make informed decisions about your options. Learn about eligibility, benefit calculations, when to apply, and strategies to maximize your benefits.
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This video covers all the sections on this page and provides additional insider tips to help you understand your options and make the best decisions for your retirement.
Understanding eligibility requirements for retirement benefits
How to calculate your benefit amount
When to apply for maximum benefits
Working while receiving retirement benefits
Social Security retirement benefits replace part of your income when you retire. The amount you receive is based on your lifetime earnings and the age at which you begin receiving benefits. Understanding how the system works can help you make informed decisions about your retirement.
Social Security retirement benefits are monthly payments provided to eligible workers who have paid into the Social Security system throughout their working years. These benefits are designed to replace a portion of your pre-retirement income.
For 2025, Social Security benefits received a 2.5% cost-of-living adjustment (COLA). Here are some key figures:
Your full retirement age is when you become eligible for your full retirement benefit amount. This age varies based on your birth year.
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If you're receiving disability benefits when you reach full retirement age, your benefits automatically convert to retirement benefits, but the amount stays the same.
Create a retirement budget that accounts for all your expected expenses, including healthcare costs which typically increase as you age. Compare this to your expected income from all sources to identify any gaps you need to address before retiring.
To qualify for Social Security retirement benefits, you need to meet specific work and age requirements. Understanding these requirements can help you determine when you'll be eligible to receive benefits.
To be eligible for retirement benefits, you need to earn credits through work covered by Social Security. In 2025:
Once you've earned the required credits, you're fully insured and eligible for benefits when you reach retirement age.
You can start receiving retirement benefits at different ages, with different impacts on your benefit amount:
Your full retirement age depends on your birth year. For those born in 1960 or later, full retirement age is 67.
Even if you've never worked under Social Security, you may be able to get benefits if you are at least 62 years old and your spouse is receiving retirement or disability benefits. You can receive up to 50% of your spouse's full retirement benefit amount.
Important notes about spousal benefits:
Unlike retirement benefits, spousal benefits don't increase if you wait beyond your full retirement age to claim them. There's no advantage to waiting past your full retirement age if you're only receiving spousal benefits.
Divorced Spouse Benefits
If you are divorced, you may still be able to receive benefits based on your ex-spouse's record if:
Your benefit as a divorced spouse is equal to one-half of your ex-spouse's full retirement amount if you start receiving benefits at your full retirement age.
Widow/Widower Benefits
If your spouse has died, you may be eligible for widow or widower benefits if:
As a widow or widower, you can receive 100% of your deceased spouse's benefit amount if you wait until your full retirement age to claim benefits.
If you are receiving divorced spouse or widow/widower benefits and you remarry after age 60 (50 if disabled), your benefits will not be affected by the new marriage.
The easiest way to check if you've earned enough credits for retirement benefits is to create a my Social Security account online. Your Social Security Statement will show:
You can create an account at www.ssa.gov/myaccount/.
Review your earnings record regularly to make sure all your work is properly credited. Employers sometimes report earnings using incorrect names or Social Security numbers, which could affect your future benefits.
To qualify for Social Security retirement benefits, most people need 40 work credits, often referred to as Quarters of Coverage (QCs). In 2025, you earn one credit for every $1,810 in covered earnings, with a maximum of four credits possible per calendar year. This means earning $7,240 at any point during 2025 secures the maximum four credits for that year. While you might earn the required amount early on, the way these credits are officially assigned matters for eligibility timing. Social Security assigns these credits quarterly.
If your total earnings for the year meet the threshold for four credits, each quarter of that year (January-March, April-June, July-September, October-December) is designated as a Quarter of Coverage. These QCs are officially assigned on the first day of each respective quarter (January 1st, April 1st, July 1st, and October 1st).
Therefore, even if you earn enough for all four credits in the first few months, the credit for the fourth quarter won't be officially assigned until October 1st of that year. Remember, while credits determine eligibility, your actual benefit amount is based on your average lifetime earnings.
Deciding when to start your Social Security retirement benefits is one of the biggest financial choices you'll make. Hit the 'start' button at 62? Wait until your Full Retirement Age? Or hold out until 70 for the biggest check? There's no magic answer, because it depends entirely on you – your health, your work plans, your family situation, and even your gut feeling about the future. Don't sweat it, though! We'll walk you through the key things to consider so you can make the choice that feels right for your retirement journey.
When to Start Benefits CalculatorYou can begin as early as age 62, but your monthly check will be permanently smaller. Waiting until your "Full Retirement Age" (FRA) – usually 66 or 67 – gets you your standard benefit. If you delay past your FRA, your benefit grows by about 8% each year thanks to "delayed retirement credits," maxing out at age 70. This means a bigger check for life and potentially higher survivor benefits for your spouse, but you have to wait longer to start.
Planning to work?
You can still get benefits, but if you're under FRA and earn over the yearly limit (the "Annual Earnings Test"), some benefits might be temporarily withheld. Don't worry, they adjust your benefit later once you hit FRA. After FRA, you can earn as much as you want with no benefit reduction.
Your health and expected lifespan matter, too. If you anticipate a long retirement, delaying for a bigger check offers more lifetime income security. If health is a concern, starting earlier might be better. Also, consider your overall financial picture – do you need the income now, or can other savings bridge the gap if you delay?
Your decision also affects potential spousal and survivor benefits. Coordinating with your spouse can be a smart move. Finally, remember that some of your benefits might be taxed depending on your total income. While people worry about Social Security's future, planning based on current rules is usually the best approach.
It's a personal decision with no single right answer.
Your full retirement age is when you become eligible for your full retirement benefit amount. This age varies based on your birth year.
Starting at the earliest age, 62, means your benefit is permanently reduced. If your FRA is 67, starting at 62 reduces your monthly check by about 30%. If your FRA is 66, the reduction is about 25%. It's a significant cut, but you start receiving payments several years earlier.
For every year you delay starting benefits past your FRA, Social Security adds "delayed retirement credits" – essentially a bonus. This bonus is about 8% per year. So, if your FRA is 67 and you wait until 70, your monthly benefit will be about 24% higher than your FRA amount (8% x 3 years). That's the maximum possible benefit you can get, and it lasts for life!
You have a couple of options, but they have rules! Within the first 12 months of starting benefits, you can withdraw your application. You'll have to repay all the benefits you and your family received, but it's like hitting the reset button, allowing you to reapply later. After that first year (or if you're past FRA), you can voluntarily suspend your benefits. They stop paying you, but your benefit continues to earn delayed retirement credits (up to age 70). You can restart them whenever you choose.
It's all about the Annual Earnings Test (AET). If you're under your FRA for the whole year and earn more than the annual limit (SSA announces this limit each year – for 2025, it's $23,400), they'll withhold $1 in benefits for every $2 you earn above that limit. In the year you reach FRA, a much higher limit applies ($62,160 for 2025), and they only withhold $1 for every $3 earned above it, counting only earnings before the month you reach FRA. It sounds complicated, but think of it as a temporary reduction if you're working significantly while claiming early.
Good question! It's not gone forever. Once you reach your FRA, Social Security recalculates your benefit amount, giving you credit for those months when benefits were withheld due to earnings. This means your monthly check will increase slightly going forward to account for the withheld amount.
Nope! Once you hit your FRA, the earnings limit disappears completely. You can work as much as you want, earn as much as you want, and your Social Security retirement benefit will not be reduced or withheld at all. Keep earning!
Your decision about when to start your Social Security retirement benefits affects potential spousal and survivor benefits for your spouse differently.
Spousal Benefits:
If your spouse is eligible for spousal benefits on your record, the maximum amount they can receive is based on 50% of your Primary Insurance Amount (PIA) – the benefit you're entitled to at your Full Retirement Age (FRA).
Survivor Benefits:
Your timing does significantly impact potential survivor benefits if you pass away first. Your spouse's survivor benefit is generally based on the actual benefit amount you were receiving.
In Summary: Your early retirement doesn't lower the base calculation for spousal benefits (tied to your PIA), but it can directly lower the potential survivor benefit (tied to your actual benefit amount).
Yes, potentially. If you were married for at least 10 years, are currently unmarried, and are age 62 or older, you might be eligible for benefits based on your ex-spouse's record (even if they've remarried). The amount is generally up to 50% of their FRA benefit. Your decision about when to claim your own benefit doesn't usually affect your ability to claim on an ex-spouse's record later, or vice versa, as long as you meet the criteria.
Yes, significantly. As a widow(er) (or surviving divorced spouse), you might be eligible for survivor benefits based on your deceased spouse's record, potentially as early as age 60 (or 50 if disabled). You also have the option to claim one benefit first (e.g., survivor benefits) and switch to the other benefit later (e.g., your own retirement benefit) if it becomes higher, perhaps after letting it grow with delayed credits until age 70. This flexibility is unique to survivors.
Not necessarily, but the timing is linked, especially around age 65. If you start Social Security before age 65, you'll automatically be enrolled in Medicare Part A (Hospital Insurance) and Part B (Medical Insurance) when you turn 65. If you wait to start Social Security after 65, you'll need to proactively sign up for Medicare around your 65th birthday to avoid potential late enrollment penalties (unless you have qualifying health coverage through current employment). Part A is usually free, but Part B has a monthly premium.
Call Chapter Medicare at 352-841-0632
Maybe. It depends on your "combined income" – that's your Adjusted Gross Income (from your tax return) plus any non-taxable interest, PLUS half of your Social Security benefits for the year. If that total exceeds certain thresholds ($25,000 for single filers, $32,000 for married filing jointly), then up to 50% of your benefits could be taxable. If it exceeds higher thresholds ($34,000 single, $44,000 married), up to 85% could be taxable. Some states also tax benefits, but many don't.
That's a common worry! While the Social Security Trustees report that the trust funds face long-term challenges without changes from Congress, the system isn't projected to "run out" of money completely. Even in the worst-case scenario decades from now, incoming payroll taxes would still cover a large portion (maybe 75-80%) of promised benefits. Most experts expect Congress will make adjustments (like they have many times before) to ensure solvency. Basing your personal timing decision purely on fear of the system collapsing is generally not recommended by financial planners; focus on what's best for your individual circumstances under the current rules.
Applying for Social Security retirement benefits is a straightforward process that can be completed online, by phone, or in person. Understanding the steps and timing can help ensure a smooth transition to retirement.
You should apply for retirement benefits about four months before you want your payments to start. This gives Social Security enough time to process your application.
For example, if you want your first payment to arrive in April, you should apply in December and select March as your benefit start month.
You can apply for retirement benefits through any of these methods:
Most applications can be completed in about 15 minutes online. You don't need to provide documents immediately unless requested.
You don't need to provide original documents or even copies when you first apply online. If Social Security needs to see your documents, they will request them after you submit your application.
You can check the status of your application online through your my Social Security account or by calling the Social Security Administration at 1-800-772-1213.
If family members receive benefits based on your record, their benefits will also be suspended when you suspend yours (except for divorced spouses).
You can work while receiving Social Security retirement benefits, but your earnings may temporarily affect your benefit amount depending on your age and income level.
Estimate how your earnings might affect your Social Security benefits.
If you're younger than full retirement age, there are limits to how much you can earn while receiving full benefits:
These limits are adjusted annually based on changes in national wage levels.
If your earnings exceed the limit, your benefits will be reduced as follows:
Important: These reductions are temporary. Once you reach full retirement age, your benefit will be recalculated to give you credit for months when benefits were reduced or withheld due to excess earnings.
Working while receiving Social Security retirement benefits before your Full Retirement Age (FRA) is possible, but there are limits on how much you can earn before your benefits are temporarily reduced. Understanding these limits can seem complex, but we can break it down.
Two Main Tests: Annual vs. Monthly
Social Security primarily uses an Annual Earnings Test. If you are under your FRA for the entire year, there's a specific limit to your earnings for that whole year (for 2025, this is $23,400). If your earnings go over this annual limit, Social Security will withhold $1 in benefits for every $2 you earn above the limit.
However, there's a Special Rule using a Monthly Earnings Test that often applies only during your first year of receiving benefits. This rule is helpful if you retire mid-year or have months where you earn very little. For 2025, if you earn $1,950 or less in a particular month (and don't perform substantial self-employment services), you will receive your full Social Security benefit for that specific month, regardless of how much you earn over the whole year.
Which Test Applies to You?
It depends on your age and whether it's your first year receiving benefits.
At or After FRA: Good news! There is no limit to how much you can earn.
Under FRA (Not First Year): The standard Annual Earnings Test applies.
Under FRA (First Year): The Special Monthly Rule might apply. If you earn below the monthly limit ($1,950 in 2025) in any given month, you get your full benefit for that month. If you earn over the monthly limit in a month, or if your total annual earnings exceed the annual limit ($23,400 in 2025), the Annual Earnings Test rules will be used to calculate potential benefit reductions based on your total annual earnings.
(Use the Decision Tree: Which Earnings Test Applies? visual to walk through your specific situation.)
Special Case: The Year You Reach FRA
The rules change during the calendar year you reach your Full Retirement Age.
Months BEFORE your FRA month: A much higher earnings limit applies only to the earnings in these months (for 2025, this limit is $62,160). If you exceed this limit using only earnings from these months, $1 in benefits is withheld for every $3 earned above it. There's also a higher monthly limit ($5,180 in 2025) that applies during these pre-FRA months.
Starting with your FRA month and onwards: There is no limit on your earnings.
If you're self-employed, Social Security counts your net earnings (after business expenses), not your gross income. This can make a significant difference in how the earnings limit affects you.
Each year, Social Security will send you a form to report your earnings for the previous year. It's important to complete and return this form promptly to ensure your benefits are calculated correctly.
If you had some low-earning years in your 35-year calculation (including years with zero earnings), working after retirement can be especially beneficial as these higher-earning years will replace the lower ones in your benefit calculation.
Keep track of both your net earnings from self-employment and the hours you work each month. Report your expected earnings and work activity accurately to SSA. Remember, these reductions aren't lost forever; your benefit amount can be recalculated at your FRA to give you credit for months benefits were withheld.
Some people may have to pay federal income taxes on their Social Security benefits. This typically happens only if you have substantial income in addition to your Social Security benefits.
Whether your benefits are taxable depends on your "combined income"
Combined income = Your adjusted gross income + Nontaxable interest + ½ of your Social Security benefits
Note: These thresholds are not indexed for inflation and have remained unchanged since 1984.
If your benefits are taxable, you'll receive documentation for tax filing:
You can request federal tax withholding from your Social Security benefits by completing Form W-4V.
Estimate how much of your Social Security benefits might be subject to federal income tax.
This information provided regarding the taxation is for general informational purposes only and does not constitute tax or legal advice. Dr. Ed is not a tax lawyer or accountant. For advice specific to your situation, please consult with a qualified tax professional or the Internal Revenue Service (IRS).
Understanding how Medicare works with your retirement is essential for healthcare planning. Here's what you need to know about Medicare enrollment, costs, and coverage in 2025.
Or, call Chapter Medicare at 352-841-0632
Most people become eligible for Medicare at age 65, regardless of when they claim Social Security retirement benefits.
Medicare has several parts, each with different costs:
Higher-income beneficiaries pay more for Part B and Part D through income-related monthly adjustment amounts (IRMAA).
Even if you delay Social Security benefits until after age 65, you should still enroll in Medicare during your Initial Enrollment Period to avoid late enrollment penalties.
Medicare Advantage plans are offered by private companies approved by Medicare. They provide all Part A and Part B benefits, and usually include Part D coverage as well. Many plans offer additional benefits not covered by Original Medicare, such as vision, dental, and hearing services.
Find answers to common questions about Social Security retirement benefits.
Call Chapter Medicare at 352-841-0632
Chapter Advisory, LLC (“Chapter”) is a private health insurance agency. In California, Chapter does business as Chapter Insurance Services (Lic. No. 6003691). Chapter is not affiliated with or endorsed by any government entity. While Chapter has a database of every Medicare plan option nationwide and can help you to search among all options, it has contracts with many but not all plans. As a result, Chapter does not offer every plan available in your area. Currently, Chapter represents 50 organizations which offer 18,601 products nationwide. You can contact a licensed Chapter agent to find out the number of products available in your specific area. Please contact Medicare.gov, 1-800-Medicare, or your local State Health Insurance Program (SHIP) to get information on all of your options. Enrollment in a plan may be limited to certain times of the year unless you qualify for a Special Enrollment Period or you are in your Medicare Initial Enrollment Period.
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