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Understanding Social Security Retirement Benefits and When You Can Receive Them

Social Security retirement benefits are monthly payments provided by the federal government to people who have worked and paid Social Security taxes during their working years. These payments begin at different ages depending on when you choose to start receiving them. The Social Security Administration (SSA) uses something called your "full retirement age" (FRA) as a reference point. Your full retirement age depends on your birth year.

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If you were born between 1943 and 1954, your full retirement age is 66. If you were born between 1955 and 1959, it ranges from 66 and 2 months to 66 and 10 months. If you were born in 1960 or later, your full retirement age is 67. These age benchmarks matter because they affect how much money you receive each month.

You can start receiving retirement benefits as early as age 62, though the monthly amount will be smaller than if you wait until your full retirement age or beyond. You can also wait until age 70 to start benefits, which increases your monthly payment amount. The difference between starting at 62 versus 70 is significant—someone who starts at 62 might receive about 30% less per month than someone who waits until their full retirement age, while someone who waits until 70 might receive about 24% to 32% more per month than at their full retirement age.

According to the Social Security Administration, approximately 47 million people received retirement, disability, or survivor benefits in December 2023. About 65% of beneficiaries were retired workers. Understanding when you can start benefits helps you plan your retirement finances.

Practical takeaway: Knowing your birth year and calculating your full retirement age is the first step in understanding your Social Security options. You can find your full retirement age by visiting the SSA website or speaking with a Social Security representative.

The Three Main Ages for Starting Social Security Retirement Benefits

Social Security offers three primary windows when you can start receiving retirement benefits: early at 62, at your full retirement age, or delayed at 70. Each option has different financial consequences that affect your lifetime earnings from Social Security.

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Starting at age 62 is the earliest possible age for most people. If you choose this path, your monthly benefit will be reduced by about 25% to 30% depending on your birth year and full retirement age. For example, if your full retirement age benefit would be $1,500 per month, starting at 62 might give you around $1,050 to $1,125 per month instead. However, you begin receiving payments six to eight years earlier than if you waited. The advantage of this choice is that you get payments sooner if you need income right away or if your health circumstances make it uncertain whether you'll live to older ages.

Waiting until your full retirement age means you receive the benefit amount that Social Security calculated based on your work history. No reduction applies, and no increase applies either—this is considered the standard or "normal" benefit amount. If you were born in 1960 or later, your full retirement age is 67, which means you would wait about five years longer than if you started at 62.

Delaying until age 70 increases your monthly benefit significantly. For each year you wait past your full retirement age, your benefit grows by about 8% per year. Over eight years of waiting from age 62 to 70, the difference is substantial. Using the earlier example of a $1,500 full retirement age benefit, waiting until 70 might result in approximately $1,980 per month. The trade-off is that you must wait longer to receive any payments.

Research from the SSA shows that the break-even point—when total lifetime benefits are equal—typically occurs around age 80 to 82 for someone comparing age 62 versus full retirement age, and around age 80 to 82 again when comparing full retirement age versus age 70. This means that if you live longer than these ages, waiting to start benefits usually results in higher total lifetime income.

Practical takeaway: Consider your health, family longevity patterns, current financial needs, and life expectancy when deciding between starting at 62, your full retirement age, or age 70. Each option involves trade-offs between receiving payments sooner versus receiving larger payments later.

How Work History and Earnings Affect Your Benefit Amount

Your Social Security retirement benefit amount is not the same for everyone. It is calculated based on your individual work history and earnings record. The SSA uses a formula that takes your highest 35 years of earnings (adjusted for inflation) and calculates an average. The more you earned during your working years, the higher your benefit will be.

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Social Security only counts earnings on which you paid Social Security taxes. Typically, this includes wages from employment and net earnings from self-employment. It does not include investment income, rental income, or other types of earnings that do not have Social Security taxes withheld. The maximum amount of earnings counted each year changes annually. In 2024, the maximum earnings subject to Social Security tax is $168,600, though this amount adjusts each year based on national wage trends.

If you have fewer than 35 years of work history, the SSA counts zeros for the missing years. This reduces your average and lowers your benefit amount. For example, if you only worked 30 years, five years of zero earnings are included in the 35-year calculation. This is why people who take extended time out of the workforce for caregiving, education, or other reasons may receive lower benefits.

The benefit calculation uses a formula with three "bend points" that apply different percentages to different portions of your average earnings. This formula is designed so that lower-income workers receive a larger percentage of their average earnings as a benefit, while higher-income workers receive a smaller percentage. A worker who earned $30,000 per year on average might receive about 40% of that amount as a monthly benefit, while a worker who earned $100,000 per year might receive about 32% as a monthly benefit. This creates a progressive system where lower-income retirees get proportionally more support.

You can view your earnings record and see an estimate of your benefits by creating an account on the SSA's website at ssa.gov. The agency provides a tool called "my Social Security" where you can see your work history as SSA has it recorded. It is important to check this occasionally to ensure the information is correct, as errors in earnings records can affect your benefit amount.

Practical takeaway: Review your Social Security earnings record several times during your working years to catch any errors. Higher lifetime earnings result in higher benefits, so understanding how your work history contributes to your benefit amount helps inform retirement planning decisions.

Filing Decisions When You Have Spouse or Former Spouse Benefits

If you are married or were previously married, you may have additional filing options beyond your own retirement benefits. Under certain circumstances, you may be able to receive benefits based on your spouse's or former spouse's work record. These spousal benefits can sometimes provide more total income than relying only on your own work record.

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Current spouses may be able to receive benefits of up to 50% of the working spouse's full retirement age benefit amount, though this also depends on when they start benefits. If a spouse waits until their own full retirement age to apply for spousal benefits, they can receive the full 50%. However, if they start before their full retirement age, the benefit is reduced. These rules applied historically to people born before January 2, 1954, with some restrictions. For people born on or after that date, current law places limitations on accessing spousal benefits without also starting their own retirement benefits.

Former spouses may also be able to receive benefits on their ex-spouse's record under certain conditions: the marriage must have lasted at least 10 years, the person must be at least 62 years old, and they must be unmarried. The amount of benefit may be up to 50% of the ex-spouse's primary insurance amount (their benefit at full retirement age), though it is reduced if started before the former spouse's full retirement age. An important feature of this rule is that you can receive benefits on a former spouse's record even if that person has not yet started their own Social Security benefits, provided you have been divorced for at least two years and meet the other requirements.

Survivor benefits also matter in household planning. If you pass away, your spouse, minor children, and dependent parents may be able to receive benefits based on your