Social Security & Retirement: What You Need to Know Before Claiming

Timing, Benefits, Spousal Strategies & Common Misconceptions

For many retirees, Social Security is a cornerstone of retirement income. But when and how you claim your benefit can significantly impact how much you receive over time—and how well it fits into your overall financial picture.

Before you make a decision, it’s important to understand how the system works, what your options are, and the strategies that can help you get the most from your benefit.

Here’s what you need to know before you file.

1. Timing Is Everything

You can begin receiving Social Security as early as age 62, but that doesn’t mean you should.

Key ages:

• 62: Earliest eligibility (with a reduced benefit)

• Full Retirement Age (FRA): Between 66 and 67, depending on your birth year

• 70: Latest age to delay and receive maximum monthly benefit

Why it matters:

• If you claim early, your benefit is permanently reduced (up to 30%)

• If you delay past FRA, your benefit increases about 8% per year until age 70

➡ Tip: Consider your health, life expectancy, need for income, and whether you plan to keep working when deciding when to claim.

2. Working While Claiming? Know the Rules

If you claim Social Security before your FRA and continue working, your benefits may be temporarily reduced.

In 2025:

• You can earn up to $22,320 before your benefit is affected

• Beyond that, $1 is withheld for every $2 you earn over the limit

• At FRA, the earnings limit disappears—and benefits are recalculated

➡ Tip: If you plan to work in your 60s, be aware of how your income could temporarily reduce your benefit.

3. Understand Spousal Benefits

Social Security offers special provisions for married couples—yet many people miss out on opportunities to boost household income.

Spousal benefit basics:

• A spouse can receive up to 50% of their partner’s benefit

• You must be at least 62 and your spouse must have filed for their benefit

• You’ll receive the higher of your own benefit or the spousal amount, not both

➡ Tip: Even if you’ve never worked or had low earnings, you may still be eligible for a significant benefit based on your spouse’s record.

4. What About Divorced or Widowed Spouses?

Social Security provides benefits for divorced or widowed individuals under certain conditions.

If divorced:

• You must have been married 10 years or more

• You must be unmarried now

• You can claim a spousal benefit based on your ex’s record—even if they’ve remarried

If widowed:

• You may be eligible for survivor benefits as early as age 60 (or 50 if disabled)

• Survivor benefits can be up to 100% of the deceased spouse’s benefit

➡ Tip: These benefits are often overlooked—make sure to explore your eligibility if this applies to you.

5. Common Misconceptions to Avoid

Let’s clear up a few myths that could lead to costly mistakes:

• “I should claim as early as possible to get more checks.”

False: Claiming early locks in a permanently lower monthly benefit—and if you live into your 80s or beyond, you could miss out on tens of thousands in lifetime income.

• “Social Security will run out of money.”

Not quite: Even if changes are made to the system, most experts expect benefits will continue—possibly at slightly reduced levels.

• “I can’t collect Social Security if I keep working.”

False: You can work and collect—but your benefits may be reduced temporarily depending on your age and earnings.

➡ Tip: Base your decision on facts, not fears. A good advisor can help model scenarios for your situation.

6. Coordinate Social Security With Your Overall Plan

Social Security isn’t a standalone decision—it should be part of your broader retirement strategy.

Consider how claiming fits with:

• Your retirement savings withdrawals

• Pension or other income sources

• Tax impact on your income

• Your spouse’s benefit strategy

• Healthcare and Medicare timelines

➡ Tip: Claiming smartly can increase household income, reduce taxes, and extend the life of your portfolio.

Final Thoughts

Deciding when and how to claim Social Security is one of the most important retirement choices you’ll make—and it’s not one-size-fits-all. The right answer depends on your health, finances, goals, and life circumstances.

The good news? With the right guidance, you can make a confident, informed decision that supports your long-term retirement vision.