What You Get When You Claim Social Security at 65 or Later

Social Security retirement benefits are monthly payments from the federal government based on your work history. You become may be able to access to claim at age 62, but the amount you receive depends on when you claim and how much you earned during your working years. If you wait until 65 or later, your monthly payment will be larger than if you claimed at 62.

The payment amount is calculated from your highest 35 years of earnings. The Social Security Administration (SSA) has a formula that converts your lifetime earnings into a monthly dollar amount. This amount stays the same each month, though it increases slightly each year to match inflation — this is called a cost-of-living adjustment, or COLA.

You do not have to stop working to claim benefits, but if you claim before your full retirement age and earn above a certain amount, your benefits will be reduced. Once you reach your full retirement age (which varies by birth year, typically between 66 and 67), there is no earnings limit.

Key Takeaways

  • Your monthly benefit amount depends on your highest 35 years of earnings and the age you claim — waiting until 65 or later gives you a larger monthly payment than claiming at 62.
  • You must have worked and paid Social Security taxes for at least 10 years (40 quarters) to receive your own retirement benefits.
  • You can claim benefits starting at 62, but your full retirement age (when you get the full amount you earned) is between 66 and 67 depending on your birth year.
  • If you were married for at least 10 years, you may be able to claim benefits based on your ex-spouse's work record even if you did not work that long yourself.
  • You will receive a notice in the mail before your 65th birthday showing your estimated benefit amount at different claim ages.

How Much You Earned Determines Your Payment

The SSA tracks your earnings record from the moment you start working. Each year you work and pay Social Security taxes (the 6.2% deduction from your paycheck), that year's earnings are recorded. The SSA uses your 35 highest-earning years to calculate your benefit.

If you worked fewer than 35 years, the SSA counts the missing years as zero, which lowers your benefit. If you worked more than 35 years, only your top 35 count. This means working longer can increase your benefit if your recent earnings are higher than your oldest years on record.

The SSA converts your lifetime earnings into a monthly amount using a formula that replaces a percentage of your average earnings. The exact percentage depends on your birth year and when you claim. Someone who earned $60,000 per year for 35 years will receive a different monthly amount than someone who earned $40,000 per year, but the difference is not dollar-for-dollar because the formula is progressive — it replaces a higher percentage of lower earnings.

Your Full Retirement Age and Claiming Age Options

Your full retirement age is when you can receive 100% of the benefit amount you earned. This age is not 65 for everyone — it depends on your birth year. If you were born between 1943 and 1954, your full retirement age is 66. If you were born between 1955 and 1960, it is between 66 and 67. If you were born in 1960 or later, it is 67.

You can claim as early as 62, but claiming before your full retirement age means a permanent reduction in your monthly payment. The reduction is roughly 6% to 7% per year you claim early. If your full retirement age is 67 and you claim at 62, your benefit is reduced by about 30%.

You can also delay claiming past your full retirement age. For each year you wait between your full retirement age and 70, your monthly benefit increases by about 8%. If your full retirement age is 67 and you wait until 70, your benefit is about 24% higher than it would be at 67. After age 70, there is no additional increase for waiting longer.

Work History Requirements and Spousal Benefits

To receive Social Security retirement benefits on your own work record, you must have worked and paid Social Security taxes for at least 10 years. The SSA counts this as 40 quarters of coverage — roughly one quarter per year of work, though you can earn all four quarters in a single year if you earn enough.

If you did not work 10 years but were married for at least 10 years, you may be able to claim spousal benefits based on your ex-spouse's or current spouse's work record. A spouse can receive up to 50% of the worker's full retirement age benefit amount. If you are divorced, your ex-spouse does not need to have claimed benefits yet for you to claim on their record, as long as you have been divorced for at least two years.

If you are widowed, you can claim survivor benefits at any age if you have a child under 16 in your care, or at 60 if you do not. Survivor benefits are typically higher than spousal benefits — a widow or widower at full retirement age can receive 100% of what the deceased worker would have received.

How to Claim and What Documents You Need

You can claim Social Security retirement benefits by visiting your local Social Security office, calling 1-800-772-1213, or going online to ssa.gov. The SSA recommends claiming three months before you want your benefits to start, though you can claim retroactively for up to six months in some cases.

You will need to provide proof of age (a birth certificate), proof of citizenship or legal residency (a passport or naturalization papers), and proof of income (recent tax returns or W-2 forms). If you are claiming spousal or survivor benefits, you will also need to provide proof of the relationship — a marriage certificate or divorce decree.

The SSA will verify your work history using the records they already have on file. You do not need to bring pay stubs or employment letters unless there is a discrepancy in your record. If you find an error in your earnings record, you should report it to the SSA as soon as possible — you have three years, three months, and 15 days from the end of the year the earnings were reported to correct them.

How Earnings Affect Your Benefits Before Full Retirement Age

If you claim before your full retirement age and continue working, the SSA will reduce your benefits if your earnings exceed a certain limit. For 2024, if you have not yet reached your full retirement age, your benefits are reduced by $1 for every $2 you earn above $23,400 per year. The limit changes each year.

This earnings test applies only to wages from work — it does not include investment income, pensions, or other retirement income. Once you reach your full retirement age, there is no limit on how much you can earn without affecting your benefits.

The reduction is temporary. Once you reach your full retirement age, the SSA recalculates your benefit to account for the months your benefits were withheld, which increases your monthly payment going forward. This is one reason some people choose to delay claiming until their full retirement age if they plan to keep working.

Cost-of-Living Adjustments and Taxes on Benefits

Each year, Social Security benefits increase by a percentage that matches inflation. This is the cost-of-living adjustment, or COLA. The COLA is announced in October and takes effect in January. In recent years, COLA has ranged from 0% to over 8%, depending on inflation rates.

Social Security benefits may be subject to federal income tax if your total income exceeds certain thresholds. If you are single and your combined income (adjusted gross income plus half your Social Security benefits) exceeds $25,000, up to 50% of your benefits may be taxable. If it exceeds $34,000, up to 85% may be taxable. If you are married filing jointly, the thresholds are $32,000 and $44,000.

Some states also tax Social Security benefits, though most do not. You can request that the SSA withhold federal income tax from your benefits if you expect to owe taxes, which can help you avoid a large tax bill at the end of the year.

Frequently Asked Questions

What is the difference between my full retirement age and my earliest claiming age?

Your earliest claiming age is 62 for everyone. Your full retirement age depends on your birth year and ranges from 66 to 67. Claiming at 62 instead of your full retirement age reduces your monthly benefit by roughly 25% to 30% permanently. The reduction is larger the younger your full retirement age is.

Can I change my mind after I claim benefits?

Yes, but only within limits. If you claimed within the last 12 months, you can withdraw your claim and reapply later at a higher amount. You must repay all benefits you received. After 12 months, you cannot withdraw, but you can suspend your benefits at your full retirement age and let them grow until 70, though this is rarely done.

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

You can receive Social Security benefits while living in most countries. However, if you are not a U.S. citizen, there are restrictions — you generally must have lived in the U.S. for at least five years. Contact the SSA before you move to confirm your situation.

Do I need to report my income to Social Security each year?

If you claimed before your full retirement age and are still working, you must report your earnings to the SSA. You can do this online, by phone, or by mail. If you reach your full retirement age during the year, you only need to report earnings for the months before you reached that age.

How long does it take to receive my first payment after I claim?

The SSA typically processes claims within two to three weeks. Your first payment usually arrives one month after your claim is approved. If you claim online or by phone, the process may be faster than claiming in person at an office.