Social Security Retirement Benefits: The Basics

Social Security can provide an important part of your retirement income.

How much you receive depends on your work history, earnings, and the age when you start claiming benefits.

You can generally begin retirement benefits at 62. Waiting longer increases your monthly payment, up to age 70.

That makes one question especially important:

When should you start Social Security?

Before answering it, you need to understand how the system works. This guide is part of the wider Retirement section.

What Are Social Security Retirement Benefits?

Social Security retirement benefits are monthly payments based largely on your earnings from work covered by Social Security.

During your working years, employees and employers pay Social Security payroll taxes. Self-employed workers generally pay both the employee and employer portions.

In 2026, employees pay a 6.2 percent Social Security tax on covered earnings up to $184,500. Employers pay another 6.2 percent. The taxable earnings ceiling generally rises over time with national wage levels.

Paying Social Security taxes helps you earn credits and builds your earnings record.

That record eventually helps determine your retirement benefit.

How Do You Qualify for Social Security Retirement Benefits?

Most workers need 40 Social Security credits to qualify for retirement benefits.

You can earn up to four credits each year.

In 2026, you receive one credit for every $1,890 in covered earnings. Earning at least $7,560 during the year gives you the maximum four credits for 2026.

For someone earning four credits each year, reaching 40 credits generally takes about 10 years of work.

Extra credits do not increase your benefit.

Once you qualify, the size of your monthly payment depends mainly on your earnings record and when you claim.

How Does Social Security Calculate Your Benefit?

Social Security looks at your highest 35 years of indexed earnings.

Earlier earnings are adjusted to reflect changes in average wages. SSA then uses your highest 35 years to calculate your average indexed monthly earnings, commonly called AIME.

That figure feeds into a formula used to determine your primary insurance amount, or PIA.

Your PIA is essentially the retirement benefit you would receive at your full retirement age before certain adjustments.

You do not need to calculate this manually.

Your my Social Security account provides personalized estimates based on your actual earnings record.

Why 35 Years Matters

Suppose you worked for only 30 years.

Social Security still uses a 35-year calculation.

The five missing years generally enter the calculation as zeros.

Those zeros can reduce your benefit.

Even after reaching 35 years, continuing to work may increase your future benefit if a new high-earning year replaces one of your lower-earning years.

This is why your benefit can sometimes increase even after a long career.

Earnings Above the Social Security Taxable Maximum

Only earnings up to the annual Social Security taxable maximum count toward the benefit calculation.

For 2026, that limit is:

$184,500

If you earn $250,000 in 2026, the additional earnings above $184,500 generally do not increase your Social Security retirement benefit for that year.

The limit changes over time.

When Can You Start Social Security?

You can generally begin Social Security retirement benefits at:

Age 62

But 62 is considered early retirement for Social Security purposes.

Starting early permanently reduces your monthly benefit compared with waiting until your full retirement age.

Your full retirement age depends on when you were born.

For people born in 1960 or later, full retirement age is:

67

For people born earlier, full retirement age falls between 66 and 67.

What Happens If You Claim at 62?

Suppose your full retirement age is 67.

If you start Social Security at 62, your retirement benefit is generally reduced by about 30 percent compared with your full retirement age amount.

For example, imagine your estimated benefit at age 67 is:

$2,000 per month

A 30 percent reduction would produce an approximate benefit of:

$1,400 per month

The actual calculation is performed monthly, so your exact reduction depends on your birth date and the month you claim.

The reduction generally continues for life.

Why Would Someone Claim Early?

Starting at 62 gives you more years of payments.

That may make sense in some situations.

You might:

• need the income
• stop working earlier than expected
• have health concerns
• have limited other retirement resources
• prefer receiving smaller payments for a longer period

Claiming early is not automatically a mistake.

The tradeoff is a smaller monthly benefit.

What Happens If You Wait Until Full Retirement Age?

At full retirement age, you generally receive 100 percent of your primary insurance amount.

For someone born in 1960 or later, that happens at 67.

You can also work after reaching full retirement age without having Social Security retirement benefits reduced under the retirement earnings test.

You can still choose to delay claiming.

Delaying Social Security After Full Retirement Age

Your benefit can continue increasing if you delay Social Security beyond full retirement age.

For people born in 1943 or later, delayed retirement credits generally increase retirement benefits by 8 percent per year, or two-thirds of 1 percent per month, until age 70.

Suppose you were born in 1960 or later.

Your full retirement age is 67.

If your age-67 benefit is:

$2,000 per month

Waiting until 70 could raise the benefit to roughly:

$2,480 per month

That is 124 percent of the full retirement age amount.

Actual dollar amounts depend on your earnings record and other adjustments.

Benefits Stop Increasing at Age 70

Delayed retirement credits stop at 70.

If you reach 70 and continue waiting, your monthly retirement benefit does not continue earning additional delayed retirement credits.

This creates three important ages to remember:

62: earliest standard retirement claiming age

Full retirement age: generally 66 to 67 depending on birth year

70: age when delayed retirement credits stop

Does Waiting Until 70 Always Make Sense?

No single claiming age works for everyone.

Consider your:

• health and life expectancy
• spouse’s benefits
• retirement spending
• employment plans
• taxes
• other savings and pensions
• need for income now
• desire for a larger guaranteed monthly benefit later

For married couples, the decision can become more complicated because one spouse’s claiming decision may affect future survivor income.

What Is the Break-Even Age?

You will sometimes hear people compare claiming ages using a “break-even age.”

Suppose claiming at 62 provides smaller checks for more years.

Waiting until 70 provides larger checks for fewer years.

At some later age, the cumulative amount received by the person who waited may overtake the cumulative amount received by the early claimant.

That is the break-even point.

It can be useful.

It should not be your only consideration.

The larger monthly benefit from delaying can also provide longevity protection if you live well into your 80s or 90s.

How Much Can Social Security Pay?

There is no single maximum Social Security retirement benefit that applies to everyone.

The amount depends on your earnings history and claiming age.

For someone who earned at or above the Social Security taxable maximum from age 22 onward and starts benefits in 2026, SSA gives these maximum examples:

These figures describe workers with unusually high lifetime covered earnings. They should not be treated as typical benefits.

Your own SSA estimate is far more useful.

Check Your Social Security Estimate

Create or sign in to a my Social Security account.

You can see personalized estimates for claiming at different ages, including 62, full retirement age, and 70.

You can also change assumptions about future earnings and see how they affect your estimated benefit.

Check your earnings record while you are there.

Missing or incorrect earnings could affect your future benefit.

Can You Work While Receiving Social Security?

Yes.

But your age matters.

If you are below full retirement age, earning above certain limits can cause some Social Security benefits to be temporarily withheld.

For 2026, if you remain below full retirement age for the entire year, the earnings limit is:

$24,480

SSA generally withholds $1 of benefits for every $2 you earn above that limit.

The Earnings Limit Changes During the Year You Reach Full Retirement Age

If you reach full retirement age during 2026, a higher limit applies to earnings before the month you reach full retirement age:

$65,160

SSA generally withholds:

$1 for every $3 earned above the limit

Only earnings before the month you reach full retirement age count toward this particular limit.

Once you reach full retirement age, the earnings test disappears.

You can earn any amount from work without Social Security withholding retirement benefits because of your earnings.

Withheld Benefits Are Not Simply Lost

If benefits are withheld because of the retirement earnings test before full retirement age, SSA later recalculates your benefit.

The recalculation gives you credit for months when benefits were withheld due to excess earnings.

That makes the earnings test different from a simple tax or permanent forfeiture.

Investment Income Does Not Count Toward the Earnings Test

The retirement earnings test is based mainly on income from working.

Wages count.

Net earnings from self-employment count.

Income such as pensions, investment gains, interest, and most other non-work income generally does not count toward this particular test.

This distinction can matter if you retire from work but continue receiving substantial investment or retirement income.

Social Security Benefits for Spouses

You may qualify for benefits based on your spouse’s work record.

At full retirement age, the maximum standard spousal benefit can equal up to 50 percent of the worker’s full retirement age benefit.

Suppose your spouse’s benefit at full retirement age is:

$3,000 per month

Your maximum spousal benefit at your full retirement age could be up to:

$1,500 per month

That does not mean you receive $1,500 on top of your own $1,200 retirement benefit.

If you qualify for both your own retirement benefit and a spousal benefit, Social Security generally pays an amount equal to the higher benefit rather than simply adding the two together.

Claiming a Spousal Benefit Early

Spousal benefits can generally begin at 62.

Claiming before full retirement age usually reduces the benefit permanently.

For someone whose full retirement age is 67, a spousal benefit begun at 62 can be as low as 32.5 percent of the worker’s primary insurance amount rather than the maximum 50 percent available at full retirement age.

Different rules can apply when caring for a qualifying child.

Delaying a Spousal Benefit Past Full Retirement Age

Regular spousal benefits do not receive the same delayed retirement credits that apply to your own retirement benefit.

Waiting beyond full retirement age generally does not increase the maximum spousal benefit beyond 50 percent of the worker’s full retirement age amount.

That distinction matters when coordinating benefits as a couple.

Survivor Benefits Work Differently

A surviving spouse may qualify for survivor benefits based on the deceased spouse’s work record.

Depending on the survivor’s claiming age and circumstances, a surviving spouse can receive up to 100 percent of the deceased worker’s benefit at survivor full retirement age.

This can make the higher earner’s claiming decision particularly important for married couples.

If the higher earner delays Social Security and builds a larger retirement benefit, that larger amount can potentially increase the survivor benefit later.

Survivor Benefits and Your Own Retirement Benefit

If you qualify for both a survivor benefit and your own retirement benefit, the rules provide some flexibility.

SSA does not simply add both full amounts together.

In some circumstances, you may be able to claim one type of benefit first and switch to another later.

For example, SSA notes that an eligible survivor could potentially receive survivor benefits first and later switch to their own retirement benefit at 70 if the retirement benefit becomes larger.

Because survivor strategies can become complicated, check your specific situation before filing.

What About Divorced Spouses?

Some divorced people may qualify for benefits based on a former spouse’s work record.

Rules include requirements involving the length of the marriage, age, marital status, and other conditions.

A marriage generally needs to have lasted at least 10 years for divorced-spouse benefits to be considered.

If this applies to you, check directly with SSA because divorce and survivor rules can interact in different ways.

Social Security and Cost-of-Living Adjustments

Social Security benefits can increase through annual cost-of-living adjustments, commonly called COLAs.

COLAs are designed to help benefits keep up with inflation.

For 2026, Social Security benefits received a:

2.8 percent COLA

The adjustment is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.

Annual COLAs vary.

Some years produce larger increases. Others produce smaller ones.

Can Social Security Benefits Be Taxed?

Yes.

Depending on your income, part of your Social Security benefit may be subject to federal income tax.

SSA says up to 85 percent of benefits may be taxable if combined income exceeds certain thresholds.

For an individual filer, the relevant threshold cited by SSA begins above:

$25,000 of combined income

For married couples filing jointly:

$32,000

Combined income generally includes:

Adjusted gross income + tax-exempt interest + half of Social Security benefits

“Up to 85 percent taxable” does not mean the government charges an 85 percent tax rate.

It means up to 85 percent of your Social Security benefits may be included in taxable income.

Your actual tax depends on your broader tax situation.

State taxation can also vary.

Social Security and Medicare

Social Security and Medicare are connected, but claiming ages differ.

Medicare eligibility generally begins at 65 for most people.

You may decide to delay Social Security until 67 or 70.

Do not assume delaying Social Security means you should automatically delay Medicare.

SSA specifically warns people delaying retirement benefits to review Medicare enrollment around age 65 because late enrollment can result in delayed coverage or higher costs in certain situations.

Employer health coverage can affect the decision, so check your circumstances before 65.

What If You Have a Government Pension?

This area changed significantly in 2025.

The Social Security Fairness Act repealed the Windfall Elimination Provision, commonly called WEP, and the Government Pension Offset, or GPO.

Those provisions previously reduced Social Security benefits for certain people receiving pensions from work that was not covered by Social Security.

Under the new law, WEP and GPO no longer apply to benefits payable for January 2024 and later.

This change affects some teachers, firefighters, police officers, federal employees under older retirement systems, and others with non-covered pensions.

It does not mean every public-sector worker receives higher Social Security benefits.

Your underlying Social Security eligibility and earnings record still matter.

Should Social Security Be Your Entire Retirement Plan?

For most households, Social Security works better as one part of retirement income.

Other sources may include:

• a 401(k)
• IRA savings
• pensions
• taxable investments
• cash reserves
• part-time work
• other household income

Social Security provides lifetime monthly income and inflation adjustments.

But your benefit may not be enough to maintain your desired lifestyle by itself.

Estimate your benefit early enough to see how large the remaining retirement-income gap may be.

A Simple Retirement Income Example

Suppose you expect retirement spending of:

$6,000 per month

Your estimated Social Security benefit is:

$2,500 per month

The initial gap is:

$3,500 per month

or

$42,000 per year

That remaining amount may need to come from retirement accounts, pensions, investments, work, or other income.

If you are married, include both spouses’ expected Social Security benefits and consider what would happen after the first spouse dies.

Retirement planning needs to work for one survivor as well as for the couple.

When Should You Check Your Social Security Record?

Do not wait until retirement.

Review your Social Security earnings record periodically.

Make sure your earnings history appears accurate.

Then compare estimated benefits at:

62

full retirement age

and

70

SSA’s online tools can calculate personalized estimates from your actual work record.

Those estimates give you a much better foundation than using national averages.

Questions to Consider Before Claiming

Before filing for retirement benefits, ask yourself:

1. What is my benefit at 62?
2. What would I receive at full retirement age?
3. What would I receive at 70?
4. Do I expect to keep working?
5. How is my health?
6. What other retirement income do I have?
7. What benefits could my spouse receive?
8. How could my decision affect survivor benefits?
9. What taxes could apply?
10. How will Medicare fit into the timing?

The largest monthly check is not automatically the best choice for every person.

The earliest check is not automatically the best choice either.

Your financial situation decides the context.

The Bottom Line

Social Security retirement benefits are based mainly on your lifetime covered earnings and the age when you begin receiving benefits.

Most workers need 40 credits to qualify.

SSA generally uses your highest 35 years of indexed earnings to calculate your retirement benefit.

You can start as early as 62, but claiming early usually reduces your monthly payment.

Waiting beyond full retirement age can increase your retirement benefit through delayed retirement credits until age 70.

Spousal and survivor benefits add another layer, especially for married couples.

Before deciding when to claim, check your actual Social Security record and compare your personalized estimates at different ages.

Then look at the decision alongside your retirement spending, health, work plans, taxes, investments, and household income.

Social Security is a lifetime decision.

Give the numbers some attention before you file.

Related Tool

Use The Financial Compass Retirement Calculator to estimate how your retirement savings, future contributions, expected spending, and other retirement income could work together.

Related Guides

• How Much Money Do You Need to Retire? A Practical Way to Estimate It
• How a 401(k) Works: Contributions, Employer Match, Taxes and Withdrawals
• 401(k) Employer Match Explained: How Matching Contributions Work
• Traditional IRA vs Roth IRA: Understanding the Difference
• Your Savings Rate and Financial Independence: Why the Percentage Matters
• What Is Inflation and How Does It Affect Your Money?

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