Claiming Social Security: 7 questions every retiree should ask

A short guide to understanding how Social Security works.

If you’re like many Americans, Social Security is one of the most important pieces of your retirement planning. You’ve worked hard, paid into the system, and now it’s time to figure out how and when to claim the benefits you've earned. But with so many rules, options, and trade-offs, deciding when to start can feel overwhelming.

Don’t worry — Betterment has you covered. 

This short guide breaks down seven questions to help you make sense of claiming Social Security benefits.

Am I eligible for Social Security benefits?

If you’ve worked and paid into Social Security for at least 10 years, you’re most likely eligible to receive benefits. 

• The Social Security Administration tracks your work history using “credits.” 
• You can earn up to 4 credits per year, and most people qualify for retirement benefits after earning 40 credits.

You can start collecting benefits as early as age 62, but the longer you wait (up to age 70), the bigger your monthly checks will be.

When can I claim Social Security?

You have three main options when it comes to timing:

1. Early retirement (age 62): You can start collecting in your early 60s, but your monthly benefit will be permanently reduced up to 30% less than if you wait until full retirement age.
2. Full retirement age (FRA): This is between the ages of 66 and 67, depending on when you were born. You’ll get 100% of your benefit if you wait until your FRA.
3. Delayed retirement (up to age 70): Social Security benefits increase by a certain percentage each month you delay receiving payments beyond full retirement age. These are called Delayed Retirement Credits. 

Quick Tip: Not sure when your FRA is? If you were born in 1960 or later, it’s age 67.

Should I wait to claim Social Security?

Timing your claim isn’t just about the numbers. It’s about what’s best for your life. Here are a few things to think about:

• Health: If you’re in poor health, it might make sense to claim early.
• Longevity: If you expect to live into your 80s or beyond, waiting could be a worthwhile strategy.
• Other income: Do you have a 401(k), pensions, IRAs, or rental income? You might not need Social Security right away, so waiting could make sense.

Everyone’s situation is unique. It’s important to balance short-term needs with long-term security as you make your decision.

How much will I get from Social Security?

Monthly benefit amounts vary widely from person to person.. The Social Security Administration looks at multiple factors and plugs them into a formula to determine your payment.

What you get depends on:

• Earnings history: What you earned during your 35 highest-earning years of work. 
• Age at claiming: You can claim Social Security benefits as early as age 62, but benefits are permanently reduced if you start before your full retirement age. 
• Delaying benefits: If you delay starting benefits beyond your full retirement age, your benefit will increase by a certain percentage each year until age 70. 
• Other factors: Your marital status and whether you are claiming as a worker, spouse, or survivor also affect your benefit amount.

Want a rough estimate? The Social Security Administration has a benefits estimator you can use to see what your checks might look like.

How does Social Security work if I’m married, divorced, or widowed?

If you're married, divorced, or widowed, there may be additional options to consider:

• Spousal benefits: If your spouse earned significantly more than you, you might be eligible for up to 50% of their benefit, even if you’ve never worked. If a spouse is also eligible for benefits based on their own work record, they will receive the higher of the two amounts.
• Divorced spouses: Divorced individuals can potentially receive Social Security benefits based on their ex-spouse's earnings record, even if they remarry, provided certain conditions are met. For instance, the marriage must have lasted at least 10 years and the divorced spouse must be at least 62 years old.
• Survivor benefits: If your spouse passes away, you may be eligible if you are age 60 or older (age 50–59 if you have a disability), were married for at least nine months before your spouse's death, and didn’t remarry before age 60 (age 50 if you have a disability).
  Learn more about Survivor Benefits.

There are also strategies like one spouse claiming early while the other delays to boost long-term income. 

Will I owe taxes on my Social Security benefits?

Maybe. Social Security benefits can be taxed, depending on your total income. This surprises many people, so it’s worth factoring into your retirement planning. 

The IRS looks at something called provisional income, which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.

Here’s a quick look at the thresholds:

These calculations can be complex, so you may want to speak with a tax professional to better understand your specific situation. 

Can I work and claim Social Security?

If you’re still working and claim your benefits before your full retirement age, there’s an earnings limit that, once reached, will reduce your payment. In 2025, that limit is $23,400. 

• If you go over the limit, the SSA withholds $1 in benefits for every $2 you earn above the limit.
• In the year you reach full retirement age, the Social Security Administration deducts $1 in benefits for every $3 you earn above a different limit.
• Once you reach your full retirement age, that earnings limit goes away, and you’ll get any withheld benefits back over time.

Takeaway: If you're planning to work part-time in your early retirement years, pay attention to how much you're making.

Plan for a brighter retirement

At Betterment, we know planning for Social Security and retirement can be challenging. But that’s why we’re here—to help you build the future you want. We provide financial resources every step of the way. Take advantage of our free educational resources to help you prepare for and navigate retirement.