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5 REASONS YOU SHOULD TAKE SOCIAL SECURITY AT 62... AND 5 REASONS YOU SHOULD WAIT
Do the reasons to take Social Security early outweigh the disadvantages of waiting? Maybe, but only under certain circumstances.
In 2025, more than four million Baby Boomers were set to turn 65, marking a record demographic shift often called “Peak 65.” This wave will dramatically increase the population over age 80 and intensify the strain on the Social Security system, which depends on contributions from a shrinking pool of current workers.
Although experts agree it’s often better to wait to claim your Social Security benefits, many Americans opt to take their benefits early.
About 45.7% of men and 54.3% of women collected Social Security between the ages of 62 and 69 in 2024, according to the Social Security Administration. Just over 34,000 took Social Security between the ages of 70 and 84, while 6,110 didn’t take it until after they turned 85.
So, what is the best age to file for benefits, and when does it pay to take Social Security benefits early? Should you claim as early as age 62?
Reasons to take Social Security at 62
1. Health issues
and fear you won’t reach full retirement age, you may decide to take your benefits early instead. This may be an easier decision if you’re single and don’t have to worry about the impact on your surviving spouse.
2. You no longer want to work
and 54.2% exposed to environmental hazards. If this is the case with you, it may no longer be well-advised to work, and instead of remaining on the job, you may choose to draw Social Security early.
3. You need cash now
cost-of-living adjustment (COLA) of 2.5%, adding roughly $50 to average monthly benefits, falls short of covering rising costs for essentials like housing, healthcare, and groceries. This can lead some retirees to claim benefits early despite reduced benefits.
Most Americans plan to claim Social Security early, despite the long-term cost. Schroders’ 2025 U.S. Retirement Survey shows that only 10% of non-retirees plan to wait until age 70 to maximize their benefits. The main reasons for early filing are: financial need (39%), the fear that the system will run out of money (38%), and the desire for immediate access to funds (36%). Meanwhile, the cost of retirement is proving to be a surprise, with nearly half of current retirees saying their expenses are higher than expected.
4. You need to cover expenses and get out of debt
You are eligible to collect your full retirement benefit — 100% of the amount you’re entitled to receive based on lifetime earnings — at full retirement age (FRA). Full retirement age varies based on when you were born. The current full retirement age is 67 years old for people turning age 62 in 2025. The FRA increases gradually to age 67 for people born between 1957 and 1960. FRA is 67 for all people born in 1960 and later.
Full-time employees in the U.S. have been working fewer hours per week for the past five years. Still, it’s not hard to believe that in 2024, U.S. employees reported working an average of 42.9 hours per week, according to Gallup. If you have a physically taxing job, it may seem even longer.
With the rising cost of living, you may decide that you need to claim your Social Security benefits early. In the Great Recession of 2008 to 2009, nearly 36% of eligible men and 39% of eligible women started claiming benefits at age 62 for one simple reason — to pay the bills.
Your current living expenses may surpass your Social Security benefit amount, so you decide to take your benefits early because you can’t wait for a larger payout later. Or, you’re drowning in debt, and taking benefits now will help. You may also feel you could do better by collecting your benefits early and investing that money. While that may appear logical, your investment must beat the 6% to 8% guaranteed return on your money that Social Security provides if you retire at full retirement age.
5. You fear benefits will dry up
The world is changing, and you may simply fear that Social Security will run out of money around the time you reach full retirement age. In fact, more than half of Americans who aren’t yet retired lack the confidence they’ll have the same Social Security benefits as current retirees, according Kiplinger News Service/TNS
However, if you’re in poor health
Data from a 2025 study by the OECD Employment Outlook notes that older workers, 50 and up, face challenging working conditions, with 50.3% in physically demanding jobs
Recent 2025 Social Security Administration data shows that about 31% of eligible senior citizens claimed benefits at age 62 in 2024, indicating ongoing financial pressures. The 2025
REASONS FOR SOCIAL SECURITY
CONTINUED FROM PAGE 4
to a recent study from the National Institute for Retirement Security (NIRS).
This fear is real, and even if you understand you’ll receive a larger benefit if you delay claiming Social Security, fear can be a driver in decisions. If this is you, claiming benefits early may be the practical thing to do.
Reasons not to take Social Security early
In contrast to all the reasons to take Social Security early, there are also several reasons to wait.
1. Benefits are permanently reduced
The earliest age you can start taking Social Security retirement benefits is 62. But your Social Security benefits are reduced by 30% if you retire at 62. That means you will receive just 70% of your full retirement benefit every month for the rest of your life.
The good news is: If you claimed your benefit early and have changed your mind, you have a narrow window to stop and restart Social Security benefits.
2. Smaller cost-of-living adjustments
By taking your Social Security benefit early, you will receive a smaller monthly benefit than if you wait until your full retirement age. You will also get less from future Social Security cost-of-living adjustments (COLA).
For instance, the earnings limit for people who have not reached their “full retirement age” in 2025 is $23,400. On the other hand, the earnings limit for people reaching full retirement age in 2025 is $62,160.
3. Penalty for working
The money you earn from a job before reaching full retirement age can affect your Social Security benefits. In 2025, Social Security deducts $1 from benefits for each $2 earned over $23,400. If you reach your full retirement age during the year, Social Security deducts $1 from benefits for each $3 earned over $62,160 until your
full retirement age. Although you will get your money back after you reach full retirement age, you won’t have as much to spend in the meantime.
4. Maximizing spousal benefits
If you’re married, you may want to consider how claiming Social Security early will affect your spousal benefits. First, when you file for retirement benefits, your spouse is typically eligible for a benefit based on your earnings, which can be half of your primary benefit amount — depending on your age at retirement. So, if your spouse begins receiving benefits before “normal (or full) retirement age,” they will receive a reduced benefit.
5. Diversifying your income
If you have other retirement accounts, like a 401(k) or IRA, and delay taking Social Security, you allow these accounts to be the primary source of income in the early years of retirement. Your Social Security will grow — your benefit increases each you you delay, up to 8% per year when you postpone beyond your FRA — and you’ll have more flexibility in how you manage your overall retirement savings.
What taking benefits at 62 might mean
When it comes to Social Security, there are pros and cons to taking your benefits early. Taking benefits early can help you cover expenses now, particularly if you’re not in the best of health. However, Social Security is not meant to replace the income you earn from a job. In fact, Social Security benefits typically only amount to about 40% of your average earnings, and if you file early, you’ll be permanently locked into a lower benefit.
One last thing. Before making any final decisions about taking your Social Security benefits early or postponing them, consider consulting with a financial adviser who can help you determine the best option for your financial needs.
THE 10 MOST COSTLY SOCIAL SECURITY MISTAKES TO AVOID
Kiplinger News Service/TNS
For millions of Americans, Social Security provides a vital, inflation-adjusted income base that lasts throughout retirement. Yet, navigating the system’s complex rules is notoriously difficult, and a single, uninformed decision can cost you — and your spouse — tens or even hundreds of thousands of dollars over a lifetime.
Understanding common Social Security errors — from permanently reducing benefits by claiming too early to overlooking spousal strategies and hidden taxes — is the crucial first step toward maximizing your guaranteed lifetime income.
Here is a breakdown of the 10 critical missteps you must avoid to secure the retirement benefits you’ve earned.
1. Filing early and permanently reducing your benefit
Potential Cost: Collecting benefits as soon as possible, which for many people happens at age 62, will permanently reduce your monthly payment. For someone with a full retirement age (FRA) of 67, claiming at 62 results
in a permanent reduction of up to 30%. This decision can cost you tens of thousands of dollars over a long retirement. Unless you absolutely need the income, delaying your claim is a significant way to maximize lifetime benefits.
2. Miscalculating your Full Retirement Age (FRA)
Your full retirement age (FRA) is the point at which you can collect 100% of your earned Social Security benefit. Your FRA is not age 65 for everyone. If you were born:
• In 1960 or later, your FRA is age 67
• In 1959, your FRA is age 66 and 10 months
• In 1957, your FRA is age 66 and six months
• In 1956, your FRA is age 66 and four month
• In 1955, your FRA is 66 and two months
Between 1943 and 1954, your full retirement age (FRA) is age 66.
Potential Cost: Mistakenly assuming your FRA is 65 can lead to an unexpected, permanent reduction in your monthly check. You can also
check your exact FRA at SSA.gov before making any decisions.
3.
Failing to capitalize on delayed retirement credits
Potential Cost: The Social Security Administration (SSA) rewards patience. For every year you delay claiming benefits between your FRA and age 70, your benefit is boosted by an 8% increase, through delayed retirement credits. If 70 is too long to wait, consider waiting a month — you’ll get an extra 2/3 of 1% for each month you delay after your reach your full retirement age.
These credits stop accumulating at age 70, making that the maximum age to file. If you have other resources like savings, investments, or a pension, using them to bridge the gap until age 70 can dramatically increase your lifetime Social Security benefits.
4. Overlooking spousal and survivor benefits
Social Security is not just based on your own work history. If you are married (for at least a year), divorced (after having been married at least 10 years), or widowed, you may be
eligible to receive benefits on your spouse’s or former spouse’s record. A spouse is generally entitled to up to 50% of the higher earner’s FRA benefit.
A widow or widower can receive up to 100% of the deceased spouse’s benefit.
Potential Cost: There are no delayed retirement credits on survivor benefits, but there are various strategies for claiming one benefit (like survivor benefits) while allowing your own worker benefit to grow until age 70. Not exploring these options can leave money on the table.
5. Not understanding how remarriage affects divorced spouse or survivor benefits
This mistake is complex and specific to those who are divorced or widowed. This is an instance where a simple oversight can cause a massive, permanent loss of benefits. The mistake? Remarrying at the wrong age or without understanding the specific Social Security rules that apply to your status.
SOCIAL SECURITY MISTAKES
For Divorced Spouses (10-year marriage rule): If you remarry, you generally lose your eligibility to claim benefits based on a former spouse’s record. You would need that subsequent marriage to end, by death, divorce, or annulment, to become eligible for the former spouse’s benefit again.
For Widows/Widowers claiming survivor benefits: This rule is age-dependent and extremely critical.
Remarrying before age 60 generally causes you to forfeit your survivor benefits based on the deceased spouse’s record.
Remarrying at or after age 60 allows you to keep the higher survivor benefit.
The Cost: Failing to understand these precise age rules when considering remarriage can cost you 100% of a valuable spouse/survivor benefit you were counting on, making it a critical financial misstep.
6. Getting caught off guard by the earnings penalty while working
Stress, headache and burnout with a business woman suffering from anxiety while working in her office. Compliance, mental health and migraine with a senior female employee feel frustrated at work
If you claim Social Security benefits before your FRA and continue to work, you may be subject to the earnings test (also called the retirement earnings limit).
For those under FRA all of 2025, the
SSA withholds $1 for every $2 earned above a limit of $23,400.
For those reaching FRA in 2025, the limit is $62,160 for the months before your birthday, and the reduction is $1 for every $3 earned above that limit.
Potential Cost: The temporary benefit reduction can be an unwelcome surprise if you are not prepared. However, once you reach your FRA, the earnings limit disappears, and the SSA recalculates your benefit to give you credit for the amount that was withheld.
7.
Not correcting errors in your earnings history
Your earnings record is built throughout your lifetime and serves as the basis for how much you or your dependents would receive when you apply for benefits.
Potential Cost: Your Social Security benefit is based on your 35 highest-earning years. Any year you didn’t work counts as a zero, which reduces your average. Mistakes in your earnings record — due to a forgotten name change, an employer error or an incorrect Social Security number — can lower your future payments. It’s important to review your earning records and correct any errors as soon as possible.
8. Ignoring your actual life expectancy
Some people claim benefits early because they doubt they will live long. Others delay too long without considering their health. A man reaching age
65 today can expect to live an average of 18 more years, and a woman more than 20 years, according to the National Council on Aging.
Potential Cost: If longevity runs in your family, delaying benefits to age 70 to maximize your monthly check can be a huge advantage. However, if your health is poor, claiming earlier may be a sensible choice. The key is to make an informed decision based on your financial situation and health, not a guess.
9. Being blindsided by taxes on benefits
Strategically timing withdrawals from traditional retirement accounts, such as 401(k)s and IRAs, versus Roth accounts can help manage your combined income and reduce the tax bite on your Social Security benefits.
Potential Cost: Up to 85% of your Social Security benefits could be subject to federal income tax, depending on your income. The IRS uses a figure called “combined income” (your Adjusted Gross Income (AGI) + nontaxable interest + one-half of your Social Security benefit) to determine taxability:
• If your filing status is single and the combined income threshold is below $25,000, the maximum taxable benefit is 0%
• Single status, combined income threshold of $25,000-$34,000, maximum taxable benefit is up to 50%
• Single status, combined income threshold of above $34,000, max
taxable benefit up to 85%
• Joint filers, below $32,000, 0%
• Joint filers, $32,000-$44,000, up to 50%
• Joint filers, above $44,000, up to 85%
10. Treating social security as your entire retirement plan Retirement experts commonly suggest you’ll need 70% or more of your pre-retirement income to maintain your lifestyle. If you were earning $70,000, Social Security might only provide $28,000, leaving a significant gap. A successful retirement requires a plan that integrates Social Security with savings, investments, and other income sources.
Potential Cost: Social Security was designed to be a foundation, not the whole floor. On average, it replaces only about 40% of the income of a medium earner before retirement. For a high earner, the replacement rate is closer to 28%.
Knowing these rules will pay in the long run
The unfortunate truth is that many retirees file for benefits at the wrong time, often due to widespread misconceptions or simply an incomplete understanding of their options. The difference between a well-timed claim and a costly mistake can be the margin between financial comfort and struggling to make ends meet in your later years.
SOCIAL SECURITY WISDOM FROM A FINANCIAL ADVISER RECEIVING BENEFITS HIMSELF
By Johnny Rosier Kiplinger News Service/TNS
Social Security remains a significant source of income for many retirees, and yet, I’m reminded regularly just how little most people understand about the benefits they have coming to them.
Month after month, the educational workshops I hold are packed with people trying to learn more, and I sympathize with their struggle.
I’m actually drawing Social Security benefits myself. I have Medicare, and I’m a widower. Plus, I’m in my 50th year of working in the financial services industry.
So, I know how challenging it can be to keep up with the many rules and rule changes and look past the myths and misconceptions.
My recommendation, of course, is to work with a knowledgeable financial adviser who can lead you through the process while taking into account every personal factor that could affect your family’s future.
Attending one workshop (or reading a few online articles) simply isn’t enough to get through all the ands, ifs and buts that go into claiming your
Social Security benefits — especially if you’re married.
Wondering where to start? Here’s a look at five things soon-to-be retirees should know about filing for Social Security — but often don’t:
1. You can file when you turn 62, but your payments will be permanently reduced
To be eligible to receive 100% of your earned benefits, you must reach what the Social Security Administration (SSA) refers to as your full retirement age (FRA), which currently ranges from 66 to 67, depending on your birth year.
Additionally, if you put off filing until you’re past your FRA, you’ll get a delayed retirement credit every year (until you turn 70) that will boost the amount of your benefit.
For many people, that extra money is well worth the wait. But there are multiple factors to consider here.
If you’re healthy and you and your spouse expect to live a long life in retirement, one or both of you may want to delay filing as long as possible. That way, you can keep growing your benefit. But if you need the money now, or if your health isn’t great, you might choose to file earlier.
You can get an estimate of what your payments might look like at different ages by signing up for a “my Social Security account” at www.ssa. gov/myaccount.
Our firm and many others also have planning software that can help you determine which filing age makes sense for you.
2. Marital status matters — even if you’re an ex
Most people underestimate how critical it is to coordinate their filing decisions with their spouse — because it will not only affect the income
both can count on in retirement but also what the widowed spouse will receive.
Many couples don’t realize that if they’re both receiving Social Security benefits when one spouse dies, the lower of their two Social Security payments will go away almost immediately.
There are actually several rules that can affect the benefit a widow or widower receives, including their age when their spouse passes, if they have a disability and/or if they’re caring for a child from the marriage who is younger than 16 or has a disability that began before he or she turned 22.
There are also rules that allow divorced spouses to file for a spousal or survivor’s benefit on an ex’s Social Security record — if they were married for at least 10 years. But again, when and how much you receive can vary if you qualify for this benefit.
Because so many couples get divorced these days — and may even remarry and divorce again — this is a topic I get many questions about.
To ensure that you get the highest payment possible, share the details of all your marriages with your financial adviser — and with the SSA when you file. (And by the way, your ex won’t know you filed on their record unless you tell them.)
3. You can keep working after you file, but you may be subject to an earnings test
Social Security recipients can keep working, but if you choose to do so and you exceed the SSA’s age-based earnings threshold, some of your benefit may be temporarily withheld from you. Here’s how it works:
For individuals younger than their FRA, the annual earnings limit for 2025 is $23,400. If you exceed this threshold, the SSA will withhold $1 for
every $2 you earn over that amount.
If you will reach your FRA in 2025, the earnings limit for the months before your birthday will be $62,160, and $1 will be deducted from your benefits for every $3 you earn over that amount.
Once you actually attain your FRA, the earnings limit goes away. It’s also important to note that the SSA will recalculate and increase your monthly payment at this time to make up for the funds withheld earlier.
4. Yes, a portion of your benefits may be taxed
Until it came up during the 2024 presidential election, many soon-to-be retirees were unaware that their Social Security benefits could be taxed. Most people I talk with still don’t understand how this tax works.
The IRS will look at your “provisional” or combined income to determine if you must pay federal income taxes on a percentage of your benefits. (Provisional income is calculated by adding your adjusted gross income for the year, any tax-free interest you received and 50% of your Social Security benefits.)
If you’re filing as an individual and your provisional income is between $25,000 and $34,000, or if you’re filing a joint return and have provisional income of between $32,000 and $44,000, you may have to pay federal income taxes on up to 50% of your benefits. Also note that you might have to pay income taxes on up to 85% of your benefits if your provisional income is higher than those amounts.
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SOCIAL SECURITY WISDOM
In 2024, President Trump proposed eliminating federal taxes on Social Security benefits, but that policy has not been enacted so far. The One Big Beautiful Bill that Congress passed did provide significant tax relief for many older taxpayers, however.
Effective for 2025 through 2028, eligible taxpayers (based on income and marital status) who are 65 or older may claim an additional deduction of $6,000 on their income tax.
Still, if you plan to withdraw money from a tax-deferred retirement plan while you’re also collecting Social Security, it’s likely you could end up paying taxes on your benefit. Taxes also could become an issue if you decide to keep working after you and/or your spouse claim your benefits.
Bracket management is a must. Whether you qualify for the new tax break or not, tax-mitigating strategies should be part of your retirement plan.
5. You can get a filing do-over (with limitations)
If you change your mind after you file for your benefits, you can withdraw your application and reapply later. However, this is a one-time-only opportunity, and you must withdraw within 12 months.
You’ll also have to repay any Social Security benefits you received.
Bonus tip: You don’t have to go it alone
Clearly, there are many moving parts here. But you don’t have to walk alone through this process. You can start by gathering information from the SSA website.
When you’re ready, be sure to work with a retirement specialist who’s well-versed and up to date on the rules. Don’t lose out on getting the full benefits you’ve earned because you didn’t know any better — and you didn’t ask.
13 ANSWERS TO PRESSING SOCIAL SECURITY QUESTIONS
By Sandra Block Kiplinger News Service/TNS
Claiming Social Security benefits can be complicated. Retirees have to figure out the optimal time to apply, estimate the impact of other income on their monthly payments, and determine the best way to take advantage of spousal and survivor benefits, among other things.
In this article, we answer some common questions about how the system works.
Social Security strategies for claiming benefits
We often hear about strategies couples can use to get the most from their combined benefits when one spouse has higher lifetime earnings from work. But what’s the best approach if a dual-income couple has a similar earnings history and will be eligible for roughly the same benefit?
The decision to file for benefits shouldn’t be made in a vacuum, says Martha Shedden, president of the National Association of Registered Social Security Analysts. If the couple has sufficient income from other sources, such as a pension or retirement savings plans, they should wait until they’re both 70 to file for benefits, Shedden says. “That’s going to be the best-case scenario because they’re maximizing benefits for them as a couple,” she says.
If both partners can wait until age 70 to file, they’ll both benefit from delayed-retirement credits, which increase benefits by 8% a year between full retirement age and age 70. (Full retirement age is 66 for those who were born between 1943 and 1954; it gradually increases to 67 for those born in 1960 or later.)
In instances in which one spouse is the higher earner, it makes sense for that spouse to postpone benefits as long as possible. Consider having the lower-earning spouse file for benefits at full retirement age, or even as early
as 62 if necessary. Use the lower-earning spouse’s benefits, along with income from other sources, to pay expenses while the higher earner’s benefits — which will get the biggest boost from delayed-retirement credits — continue to grow until the higher earner turns 70.
How early can you claim survivor benefits after your spouse dies?
Surviving spouses who were married for at least nine months before their spouse’s death are entitled to survivor benefits at age 60, or age 50 if they’re disabled (or at any age if they have a dependent child who is younger than 16 or who became disabled before age 22).
However, if you claim survivor benefits at age 60, you’ll be entitled to only about 71.5% of your late spouse’s benefits, compared with 100% of your late spouse’s benefits if you wait until you reach full retirement age. If your benefits will be less than the survivor benefits, a better strategy is to file for your benefits at age 62 and switch to
survivor benefits when you reach full retirement age, which is when those benefits reach their maximum.
Conversely, if your benefit will be larger, you could claim survivor benefits as early as age 60 and allow your benefits — which are eligible for delayed credits — to grow until you reach age 70, at which point you could switch to your benefits. Survivor benefits don’t increase after you reach your full retirement age, so this is the most effective way to take advantage of delayed-retirement credits.
I’m divorced. Can I file for benefits based on my exspouse’s earnings record?
You may be eligible for spousal benefits if you were married at least 10 years, you’re currently single, and you’re at least 62 years old.
Whether you qualify to receive these benefits depends on the amount of your retirement benefit (if any) and the amount of the ex-spousal benefit at the time you file. Spousal (and ex-spousal) benefits are a maximum of 50% of the spouse’s full benefit — in
other words, the amount received at full retirement age.
If you’ve been divorced for at least two years, you don’t need to wait until your ex has started to collect retirement benefits, and you don’t have to notify them that you’re collecting spousal benefits based on their record. Filing for ex-spousal benefits won’t affect the amount of benefits your ex is eligible to receive, nor will it affect the amount of benefits your ex’s current spouse will receive if your ex remarried. If you’ve been married more than once and meet the other eligibility criteria, you can choose which ex to base your ex-spousal earnings on.
If your ex dies, you may also qualify for survivor benefits, which are even more valuable. In that case, you’re eligible to claim as much as the entire amount of your late ex’s benefits.
How will remarriage affect my eligibility for Social Security survivor benefits?
If you remarry before reaching age
SOCIAL SECURITY QUESTIONS
50, you won’t be eligible for disability or survivor benefits based on your deceased former spouse’s work record unless your second marriage ends by divorce or annulment. If you remarry between the ages of 50 and 59, you may qualify for survivor benefits if you’re disabled and unable to work, but otherwise, you’re ineligible for survivor benefits. If you remarry at age 60 or older, you’re eligible for survivor benefits based on your deceased spouse’s record or your new spouse’s record (once you have been married one year), whichever provides the larger benefit.
Working while on Social Security
I filed for Social Security at age 62 but have gone back to work. Can I put my benefits on hold?
If you’re collecting benefits and earn income from a job before you reach full retirement age, Social Security may hold back some of your benefits through what’s known as the earnings test. In 2025, Social Security will withhold $1 of benefits for every $2 you earn above $23,400. If you reach full retirement age in 2025, you can earn up to $62,160 without benefits being held back; after that, Social Security will withhold $1 for every $3 you earn over the exempt amount. Earnings in or after the month you reach full retirement age don’t count toward the earnings test.
You may be able to avoid the earnings test — and boost the amount of your monthly payments — by asking Social Security to withdraw or suspend your benefits. If you filed for benefits within the past 12 months, you can request a withdrawal of benefits and repay the amount you’ve received. By waiting until full retirement age (or later, up to age 70) to restart the clock, you’ll increase the amount of your monthly benefit. You can do this only once.
After the 12-month window, you can’t request a do-over. However, once you reach full retirement age, you can ask Social Security to suspend your benefits until up to age 70. This will enable you to earn delayed-retire-
ment credits of 8% a year, which will increase the amount of your monthly payment when you resume benefits.
I retired midyear, before reaching full retirement age, and filed for Social Security benefits. Will I be penalized because the income I received before I retired exceeded the limit for the earnings test?
Not necessarily, even if you earned more than the annual limit before you stopped working. Midyear retirees who haven’t reached full retirement age are eligible for a monthly test that can be used for only one year, usually the first year of retirement. Those who are eligible for the monthly earnings test can receive 100% of their benefits for any full month the agency considers them retired, regardless of total annual earnings.
In 2025, if you haven’t reached full retirement age (when the earnings test goes away), Social Security considers you retired if you don’t earn more than $1,950 per month. Here’s an example: Suppose you earn $50,000 through September, when you retire from your full-time job at age 63. From October through December, you work part-time (or not at all) and earn less than $1,950 per month. In that case, you’ll receive full Social Security benefits for those months, even though you earned more than $23,400 for the year.
If I work past full retirement age, do I have to worry about the earnings test?
No. Beginning with the month you reach full retirement age, income from a job will no longer reduce your benefits, no matter how much you earn. However, earning income from work could increase the likelihood that you’ll pay taxes on up to 85% of your benefits.
Maximizing your Social Security benefits
How can I increase the amount of my monthly payment?
First, some background: The maximum Social Security check for 2025 is $5,108 per month, up from $4,873 in 2024, but most beneficiaries will receive less than that. In 2025, the
average monthly payment is $1,976. Your monthly benefit is based on your 35 highest-earning years. (To qualify for a benefit at all, you need the equivalent of 10 years of full-time work.) That means if you work for only 28 years, Social Security will use your 28 years of earnings plus seven zeros to calculate your benefit. If you work more than 35 years, Social Security will consider your 35 highest-earning years to calculate your benefit.
Working longer could increase your monthly benefit, particularly if you’re in your highest-earning years and/or took time off to care for children or elderly parents. And even after you stop working, you can increase your monthly payment by delaying benefits. You’re eligible to take benefits as early as age 62, but claiming before your full retirement age reduces your benefit. If your full retirement age is 67 and you claim at 62, for example, your benefits are reduced by 30%. If you wait beyond your full retirement age, you’ll get a delayed-retirement credit for each year until you turn 70.
Social Security boost for public employees
As a state government worker, I was subject to reduced Social Security benefits. How will recent changes in the law affect me?
In early January, former President Biden signed into law a bipartisan bill that repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), federal policies that reduced Social Security benefits for certain workers who receive a public pension. The change will extend full benefits to nearly 3 million retirees. Teachers, firefighters and police officers are among those commonly impacted by the WEP and GPO. The new law, called the Social Security Fairness Act, affects Social Security payments made after December 2023.
Earlier this year, the Social Security Administration made a one-time retroactive payment for benefits going back to January 2024 to retirees who were affected by the WEP and GPO. And starting in April, most affected benefi-
ciaries began receiving their increased monthly benefit. You should have received a notice in the mail explaining the change in your benefits. In cases that are too complex to be processed automatically, it may take more time to process the change in benefits and the retroactive payment, the Social Security Administration says.
The amount that payments are increasing will vary greatly, Social Security says. Some beneficiaries will see only a modest change, while others will receive more than an additional $1,000 a month.
What if I never filed for benefits because I assumed they would be wiped out by the WEP?
You may need to file for benefits at www.ssa.gov/apply. Other Social Security policies still apply, such as a reduction in benefits if you file before you reach full retirement age or are working and subject to the earnings test.
Social Security help for caregivers
If an elderly relative has given me power of attorney for finances, do I have the right to manage Social Security benefits for them?
No, but the Social Security Administration allows caregivers and others to act as a representative payee for a beneficiary. Through this program, you can protect an elderly relative (or other family member) from scams or mismanagement that could affect their benefits. A representative payee has the authority to receive a beneficiary’s payments and use them on the beneficiary’s behalf.
To apply to be a representative payee, make an appointment at a Social Security branch office. You’ll need to complete Form SSA-11-BK (Request to be Selected As Payee) and provide documents to verify your identity.
If you’re a Social Security beneficiary and want to protect your benefits in the event you become incapacitated, you can designate up to three people
SOCIAL SECURITY QUESTIONS
to act as your representative payee. You can use your my-SocialSecurity online account to make the advance designation, and you can update it at any time. Social Security will ask for your designees’ names, telephone numbers, and, if you choose to provide it, their relationship to you.
Social Security benefits for expats
I’m planning to move to another country. How will that affect my Social Security benefits?
Living abroad won’t affect your Social Security benefits, with a few exceptions (Social Security won’t send payments to Cuba or North Korea, for example). If you plan to be outside the U.S. for 30 days or more, provide Social Security with the name of the country or countries you plan to visit and the date you expect to leave the U.S. Social Security will send you instructions on how to receive your benefits while you’re away.
Every one to two years, the SSA sends a questionnaire to individuals who are receiving Social Security benefits outside of the U.S. If you don’t complete and return this form, Social Security may suspend your benefits.
Social Security solvency concerns
I’m worried that Social Security will run out of money in a few years. With that in mind, doesn’t it make sense to file for benefits as early as possible?
Without congressional action, the Social Security Old-Age and Survivors Insurance Trust Fund, which funds retiree benefits, is scheduled to be depleted by 2033; the Old-Age, Survivors, and Disability Insurance program, which also accounts for disability benefits, is projected to run out of money in 2035.
Lawmakers, aware that Social Security is overwhelmingly popular with their constituents, have pledged
to shore up the fund before that date. But even if that doesn’t happen, Social Security won’t disappear. Instead, benefits will be cut by about 17%.
With that in mind, it may make sense to delay claiming your benefits as long as possible, says Shedden, president of the National Association of Registered Social Security Analysts. “If there’s a future cut, you’ll get it from a larger benefit instead of a smaller one,” she says.
Get help from a Social Security expert
If you need guidance as you figure out how to maximize your benefits, a Registered Social Security Analyst (RSSA) can help you estimate the amount of benefits you’re in line to receive, identify strategies to increase your monthly payment (such as by waiting until at least your full retirement age to claim benefits), project how much of your benefits will be taxable, and give you a comprehen-
sive picture of all the benefits Social Security provides, including disability and survivor benefits.
Martha Shedden, president and cofounder of the National Association of Registered Social Security Analysts (NARSSA), created the certification in 2017 after she was unable to find the type of detailed information she needed. To obtain the certification, individuals must complete a five-part educational program through NARSSA, pass the RSSA Competency Final Exam, and meet specific professional requirements. Those who receive the certification are also equipped with a software program called Roadmap, which gives clients a personalized picture of their benefit outlook.
You can find an RSSA through the National Association of Registered Social Security Analysts’ website or by asking for referrals from a financial adviser or other trusted professional. They can see you in person or meet virtually
2026 SOCIAL SECURITY COLA IS 2.8%: WHAT YOU NEED TO KNOW
Associated Press
to be based on the Consumer Price Index for Americans aged 62 or older (CPI-E), but they have so far failed. Proponents of using this price index say it reflects the costs incurred by older adults more accurately than the broader CPI-W. Medical expenses, an increasing burden on older adults, are weighted more heavily in the CPI-E than in the CPI-W.
In reality, the COLA is applied not only to retirement benefits, but to disability and survivor benefits. So, a COLA that is geared toward older beneficiaries wouldn’t necessarily address their needs.
SSA cannot pay you benefits if you don’t have enough credits.
The SSA also uses the number of credits you’ve earned to determine your eligibility for retirement or disability benefits, Medicare, and your family’s eligibility for survivor benefits.
The Social Security annual cost-ofliving adjustment (COLA) for 2026 is 2.8%, the Social Security Administration (SSA) announced on Oct. 24. This is among the smallest COLA increases since 2020, as expected, and follows a 2.5% increase in 2025.
According to the SSA, the 2.8% increase will translate to an additional $56 for the average retiree, resulting in an average monthly check of $2,071, up from $2,015 in 2025. Married couples will see an average increase of $88, raising their monthly benefit to $3,208 from $3,120 in 2025.
The 2026 COLA was originally scheduled to be released on Oct. 15 and was delayed due to the impact of the government shutdown. Although the shutdown is ongoing, some employees at the Bureau of Labor Statistics (BLS) were recalled to prepare the September Consumer Price Index (CPI), which is essential to computing the 2026 COLA. CPI was also released on October 24.
The 2026 COLA in context
Although the 2.8% COLA is only 0.3% more than the 2.5% increase in 2025, it isn’t far from the historical average.
“With current inflation at 3%, and inflation next year a bit less, the COLA should help seniors mostly keep up,” said David Payne, economist for The Kiplinger Letter.
However, some retirees might find this COLA increase lacking. “A
2.8% increase is modest, especially for retirees whose cost increases may be higher in areas such as health care, housing, or other retirement-specific expenses,” Martha Shedden, co-founder of the National Association of Registered Social Security Analysts (RSSA), said.
The COLA has averaged about 2.6% over the past 20 years. It went as low as 0.0% in 2016 amid declining prices, and as high as 8.7% in 2023 when inflation spiked after COVID disruptions.
How is the COLA calculated?
The Consumer Price Index (CPI-W) for Urban Wage Earners and Clerical Workers is the benchmark the SSA uses to determine the COLA, but that is a recent development. Initially, a new act of Congress was required each time benefits were increased. However, the rapid and persistent inflation in the 1970s was quickly eroding the purchasing power of fixed pensions and Social Security benefits. Congress enacted the COLA provision as part of the 1972 Social Security Amendments, and automatic annual COLAs began in 1975.
The COLA is now determined by the inflation observed in July, August, and September in the CPI-W. The SSA calculates the percentage change between average prices in the third quarter of the current year and the third quarter of the previous year.
Some proposals call for the COLA
Earnings test when you receive benefits while working
Earned income can cost you if you continue to work after claiming Social Security benefits early. In this case, the Social Security earnings test for annual income is applied and reduces your monthly benefit. The SSA temporarily withholds $1 of your benefits for every $2 earned over $24,480 or $2,040 per month for 2026. In a year the worker hits full retirement age, the test is more generous — the worker forfeits $1 in benefits for every $3 in 2026 earnings above $65,160 or $5,430 per month.
Social Security tax wage cap for 2026
Social Security caps the amount of income you pay taxes on and get credit for when benefits are calculated. The new Social Security tax limit is $184,500 in 2026, up $8,400 from $176,100 in 2025. The tax limit is indexed to inflation, so you can anticipate it will rise again in 2027.
In 2025, the tax limit was $176,100, and it rose by $7,500 from $168,600 in 2024.
How much you need to earn to qualify for Social Security credits in 2026
You must earn a minimum of 40 Social Security credits to qualify for retirement benefits, and you are allowed to earn up to four credits per year. The
To earn one credit in 2026, you must have wages and/or self-employment income of $1,890, and you must earn $7,560 to get four full credits. In 2025, you only needed to earn $1,810 to earn a credit, $80 less than what you needed to earn in 2026. This amount increases annually, so it will rise in 2027.
How you can increase your monthly Social Security benefits
One way to ensure a larger monthly Social Security benefit is to delay claiming your benefits until age 70. You receive an extra 2/3 of 1% for each month you delay after your birthday month, and you can further increase your benefit up to 8% for each full year you wait until age 70. If you wait until 70, your monthly benefit is 28% higher than if you started to collect benefits at your full retirement age (FRA).
Collecting benefits before your FRA can lead to a permanent decrease in your benefits. If you were born in 1960 or later, taking benefits at 62 would reduce your check by 30% and spousal benefits would be reduced by 35%. The maximum benefit for a spouse is only 50% of the benefit the worker would receive at FRA. The percentage reduction for the spouse would be applied after the automatic 50% reduction.
You can use your retirement savings to postpone receiving Social Security and create a ‘Social Security bridge’ to help reduce early-claiming penalties and collect a higher monthly income. Whether you have an IRA or 401(k), both offer strategies to help you delay claiming your benefits until your FRA, if not later.
The Social Security Administration building in Washington.
