How Does Social Security Work and When Should You Claim It?
Social Security is the largest source of retirement income for most Americans — but claiming at the wrong age can cost you tens of thousands of dollars.
General information, not professional advice — see terms of use.
Your benefit is calculated from your 35 highest-earning years. Full Retirement Age (FRA) is 67 for anyone born in 1960 or later.
When you can claim:
Age 62 (earliest): Benefit permanently reduced by up to 30% vs. FRA. Choose this if you have serious health problems limiting life expectancy or need income urgently.
Full Retirement Age (67): 100% of your calculated benefit.
Age 70 (maximum): 8% annual increase per year beyond FRA. At 70, you receive 124% of your FRA amount. No benefit to claiming after 70.
Breakeven: If you delay from 62 to 70, you receive larger checks but miss 8 years of payments. The breakeven is typically around age 80. If you're in good health with longevity in your family, delaying to 70 is often the best decision.
Married couples: Complex claiming strategies available. A higher-earning spouse delaying to 70 maximizes the survivor benefit for the lower-earning spouse — often the most important consideration.
Follow-up questions
Can I collect Social Security and still work?
Yes, but if you claim before FRA and earn more than $22,320 (2025), $1 is withheld for every $2 over the limit. At FRA, you can earn any amount with no reduction. Withheld amounts are returned to you through higher monthly benefits starting at FRA.
Is Social Security going broke?
Social Security trust funds are projected to be depleted around 2033. At that point, incoming taxes would cover about 79% of benefits — not zero. Congress has historically acted to shore up Social Security and is expected to do so again, though the form of any fix is uncertain.
What is the maximum Social Security benefit in 2025?
The maximum monthly Social Security benefit at FRA (67) in 2025 is approximately $3,822/month. The maximum at age 70 is approximately $4,873/month. To receive the maximum, you must have earned at or above the maximum taxable earnings limit ($168,600 in 2024) for 35 years.
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This page is general information, not professional advice, and it may not reflect the latest rules where you live. For your own situation, talk to a qualified adviser. Spotted an error? Email per@upperia.se and we will fix it.