What Retired Worker Benefits Are and Who Receives Them

Retired Worker Benefits are monthly payments from Social Security to people who have worked and paid Social Security taxes for a certain number of years. You do not have to be poor to receive them — they are based on your work history and the age you start collecting, not on your income or savings. The amount you receive each month depends on how much you earned during your working years and when you claim.

Social Security keeps a record of your earnings from every job where you paid Social Security tax (the 6.2% deduction from your paycheck). The system calculates your benefit amount using your 35 highest-earning years. If you worked fewer than 35 years, zeros are included in the calculation, which lowers your benefit. You must have earned credits through work to be covered — currently, you need 40 credits to be insured for retirement benefits, which is roughly 10 years of work.

Key Takeaways

  • You need 40 work credits (about 10 years of employment) to receive retirement benefits, and the amount is based on your 35 highest-earning years.
  • You can claim as early as age 62, but your monthly payment will be permanently reduced — the longer you wait, the larger your monthly check.
  • Your full retirement age (when you get 100% of your calculated benefit) ranges from 66 to 67 depending on your birth year.
  • You can view your earnings record and estimated benefit amount on your Social Security account at ssa.gov, which you can create for free.
  • If you are still working, Social Security may reduce your benefit temporarily if you claim before your full retirement age and earn above a certain amount.

How Your Benefit Amount Is Calculated

Social Security uses a formula based on your average indexed monthly earnings (AIME) — essentially your earnings adjusted for inflation, averaged over your 35 highest-earning years. The formula applies a percentage to different income brackets, which means lower earners receive a higher percentage of their past earnings as a benefit, while higher earners receive a lower percentage. This structure is intentional: the program replaces a larger share of income for workers who earned less.

Your Primary Insurance Amount (PIA) is the benefit you would receive at your full retirement age. If you claim earlier, it is reduced by a percentage for each month before full retirement age. If you delay past full retirement age, your benefit increases by about 8% per year until age 70. The difference between claiming at 62 and claiming at 70 can be substantial — a person born in 1960 might receive roughly 70% of their PIA at age 62, but 124% of their PIA at age 70.

Full Retirement Age and When to Claim

Your full retirement age is when Social Security pays you 100% of your calculated benefit. This age is not 65 for everyone — it depends on your birth year. People born between 1943 and 1954 have a full retirement age of 66. For those born between 1955 and 1960, it increases gradually from 66 and 2 months to 66 and 10 months. Anyone born in 1960 or later has a full retirement age of 67.

You can claim as early as age 62, but your benefit will be reduced for life. You can also delay claiming past your full retirement age up to age 70, and your benefit will increase each year you wait. There is no advantage to waiting past 70 — your benefit stops increasing at that point. The decision of when to claim depends on your health, life expectancy, whether you are still working, and your financial needs. Someone in poor health might claim at 62; someone in good health with other income might wait until 70.

Work Credits and Insured Status

Social Security measures your work history in credits, not years. In 2024, you earn one credit for each $1,730 of wages you earn (the amount changes yearly). You can earn a maximum of four credits per year. To be insured for retirement benefits, you need 40 credits total — which typically means 10 years of work, but does not have to be consecutive.

If you worked for a government employer and did not pay Social Security tax, you may have a gap in your record. Self-employed people pay both the employee and employer portions of Social Security tax (15.3% total), but they still earn credits the same way. If you have fewer than 40 credits, you will not receive retirement benefits based on your own work record, though you may be able to receive benefits as a spouse or survivor if a family member is insured.

Earnings Limits If You Claim Before Full Retirement Age

If you claim retirement benefits before reaching your full retirement age and you continue to work, Social Security will reduce your benefit if your earnings exceed a limit. In 2024, the limit is $23,400 per year; for every $2 you earn above that amount, Social Security reduces your benefit by $1. This reduction applies only in years before you reach full retirement age. Once you reach full retirement age, there is no earnings limit — you can earn any amount without a reduction.

The earnings limit applies only to wages and self-employment income, not to investment income, pensions, or other sources. If you are close to the limit, you may want to discuss the timing of your claim with a Social Security representative, because the math can be complex. Some people find it makes sense to delay claiming if they plan to keep working.

Spousal and Survivor Benefits

If you are married, your spouse may be able to receive a benefit based on your work record, even if they did not work or worked very little. A spouse can claim at full retirement age and receive up to 50% of your Primary Insurance Amount. If your spouse claims before full retirement age, the benefit is reduced. A spouse caring for your child under age 16 can claim at any age.

If you pass away, your family members may receive survivor benefits: your widow or widower at full retirement age (or earlier with a reduction), your children under age 19 (or 19 if still in high school), and your dependent parents age 62 or older. The total amount paid to all family members is capped at roughly 150% to 180% of what you would have received, so benefits are divided among survivors.

How to View Your Earnings Record and Estimate Your Benefit

You can create a free account on ssa.gov to view your official earnings record and see an estimate of your retirement benefit at different claiming ages. This account is called a my Social Security account. To create one, you will need your Social Security number, email address, and a way to verify your identity (usually a phone number or address on file with Social Security).

Your earnings record shows what Social Security has on file for each year you worked. If you see an error — a missing year, an employer name that is wrong, or earnings that do not match your tax return — you should report it to Social Security as soon as possible. Corrections can take time, so it is worth checking your record several years before you plan to claim. If you do not have internet access or prefer to speak with someone, you can call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to request a paper statement or discuss your record.

Frequently Asked Questions

Can I change my mind after I start receiving benefits?

Yes, but only within limits. If you claimed within the last 12 months, you can withdraw your claim and repay all benefits you received; this resets your record as if you never claimed. After 12 months, you cannot withdraw. However, you can suspend your benefits at full retirement age or later, which pauses your payments and allows your benefit to grow until age 70. Once you suspend, you cannot restart until you reach 70.

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

If you are a U.S. citizen, you can receive benefits anywhere in the world. If you are not a U.S. citizen, the rules are more complex and depend on your country of residence and immigration status. Some countries have agreements with Social Security that allow non-citizens to receive benefits; others do not. Contact Social Security before you move to confirm your situation.

Do I have to pay taxes on my Social Security benefits?

It depends on your total income. If your combined income (adjusted gross income plus nontaxable interest plus half your Social Security benefits) exceeds certain thresholds, up to 50% or 85% of your benefits may be taxable. Single filers with combined income over $25,000 and married filers over $32,000 may owe taxes. Many retirees owe no tax on benefits; a tax professional can help you figure out your situation.

What if I did not work long enough to earn 40 credits?

You will not receive retirement benefits based on your own work record. However, you may be able to receive spousal benefits if you are married to someone insured for retirement, or survivor benefits if a family member who was insured passes away. You can also continue working to earn more credits if you are still able to do so.

Can I receive retirement benefits and still work full-time?

Yes, but if you claim before full retirement age, your benefit will be reduced if you earn above the annual limit ($23,400 in 2024). Once you reach full retirement age, you can earn any amount without a reduction. Many people work part-time or full-time while receiving benefits, especially if they claimed early and want to minimize the reduction.