retirees rely on Social Security as a primary income source. But understanding how to claim your benefits—and when—can make a significant difference in how much you receive each month. 🧾 Here’s how to get the most out of your Social Security in your 60s and beyond.
⏳ Should You Start Collecting Early or Wait?
You can start receiving Social Security as early as age 62, but doing so comes with a permanent reduction in your monthly benefit — up to 30% lower than if you wait until full retirement age (FRA), which is typically 66 or 67 depending on your birth year.
If you hold off until age 70, your monthly benefit increases by about 8% per year after FRA. That’s a substantial boost for those who anticipate a longer life expectancy.
💡 Tip: If you're in good health and expect to live beyond 80, waiting to claim could result in significantly more income over time.
💼 Still Working? Know the Impact
Starting benefits while still earning income can affect your payments. If you begin collecting before reaching FRA and earn over a certain threshold, Social Security may temporarily withhold a portion of your benefits.
📌 In 2025, the earnings limit is $22,320. If your income exceeds this, $1 is deducted for every $2 you earn above the limit. The good news? Once you reach FRA, there’s no earnings cap, and any withheld benefits are gradually paid back over time.
🧑🤝🧑 Understanding Spousal & Survivor Benefits
You may be entitled to additional income through your spouse—even if you never worked or earned much on your own.
✅ Eligible Scenarios:
- Spousal Benefit: You can claim up to 50% of your spouse’s benefit if you’re at least 62 and your spouse has already claimed.
- Survivor Benefit: Widows or widowers can start receiving benefits as early as age 60, or 50 if disabled.
- Divorced Spouse: If your marriage lasted 10+ years and you haven’t remarried, you may qualify for a benefit based on your ex-spouse’s record.
These benefits don’t reduce what your current or former spouse receives.
💰 Will Your Benefits Be Taxed?
Yes, Social Security income may be subject to federal taxes depending on your total income.
📊 2025 Taxable Income Guidelines:
- Single filers: If combined income exceeds $25,000, up to 85% of benefits may be taxable.
- Married couples (filing jointly): If income exceeds $32,000, taxes may apply.
Combined income includes:
- Your adjusted gross income
- Nontaxable interest
- Half of your Social Security benefits
🧾 A financial advisor or tax preparer can help you time withdrawals from 401(k)s or IRAs to reduce taxable income.
📌 Don’t View Social Security in Isolation
Your benefit decisions should be part of a larger retirement plan. Social Security works best when coordinated with pensions, savings, and investment accounts.
A retirement strategy might include:
- Delaying withdrawals from IRAs
- Drawing from taxable accounts first
- Reducing income in high-tax years
Proper planning can help your savings last longer and provide more flexibility.
🧠 Quick Recap: What to Remember
| Age to Claim | Monthly Benefit | Best For |
|---|---|---|
| 62 | ~70% of full benefit | Early retirement or health issues |
| 66–67 | Full benefit | Average life expectancy |
| 70 | ~132% of full benefit | Healthy individuals expecting longevity |
📍 The right age for you depends on your health, income needs, and family longevity history.
🌅 Final Thoughts
Social Security may feel like a simple government program, but the decisions around it carry lifelong consequences. By learning the rules and exploring your options early, you can maximize your income and approach retirement with confidence.
📞 Tip: A certified financial planner can help you coordinate claiming strategies with other retirement assets for the best possible outcome.
