When Should You Sign Up for Social Security?

Deciding when to begin receiving Social Security retirement benefits is a significant financial consideration for many individuals. This choice can profoundly impact one’s financial security throughout retirement. Understanding the various factors involved and how they interact is essential for making an informed decision that aligns with personal circumstances and retirement goals.

Determining Your Full Retirement Age

Your full retirement age (FRA) is the specific age at which you are eligible to receive 100% of your Social Security primary insurance amount (PIA). The Social Security Administration (SSA) determines this age based on your birth year.

The FRA varies depending on your birth year. For individuals born in 1943 through 1954, the FRA is 66. For those born in 1960 or later, the FRA is 67. If you were born between 1955 and 1959, your FRA falls between 66 and 67, increasing by a few months for each subsequent birth year. For example, the FRA for someone born in 1958 is 66 and eight months.

| Year of Birth | Full Retirement Age |
| :———— | :—————— |
| 1937 or earlier | 65 years |
| 1938 | 65 years, 2 months |
| 1939 | 65 years, 4 months |
| 1940 | 65 years, 6 months |
| 1941 | 65 years, 8 months |
| 1942 | 65 years, 10 months |
| 1943-1954 | 66 years |
| 1955 | 66 years, 2 months |
| 1956 | 66 years, 4 months |
| 1957 | 66 years, 6 months |
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960 and later| 67 years |

Benefit Adjustments Based on Claiming Age

The age at which you begin receiving Social Security benefits directly affects the monthly amount you will receive. You can start benefits as early as age 62, but claiming before your full retirement age results in a permanent reduction of your monthly payment. For instance, if your FRA is 67 and you claim at age 62, your monthly benefit could be reduced by as much as 30%.

Conversely, delaying the start of your benefits beyond your full retirement age can increase your monthly payment. This increase comes in the form of delayed retirement credits (DRCs). These credits accrue for each month you postpone claiming benefits, up until age 70. For those born in 1943 or later, delayed retirement credits increase your monthly benefit by 8% per year, meaning waiting until age 70 can result in a 24% higher monthly benefit. Benefits do not increase after age 70.

Claiming your benefits precisely at your full retirement age means you receive 100% of your primary insurance amount, without any reductions or delayed retirement credits. This represents the base amount determined by your earnings record. The decision to claim early, at FRA, or to delay is a trade-off between receiving benefits sooner, receiving your full earned amount, or maximizing your monthly payment later in life.

Personalizing Your Claiming Strategy

Beyond the mechanical adjustments to benefits, several personal circumstances can influence the optimal claiming strategy. Your health and family longevity history are important considerations. If you anticipate a shorter lifespan due to health issues, claiming benefits earlier might provide a greater total payout over your lifetime, even with the reduced monthly amount. Conversely, if you expect to live a long life, delaying benefits to maximize your monthly payment could offer greater financial security in your later years.

Your current financial needs and other income sources also play a significant role. If you have sufficient savings, pensions, or other retirement income to cover your expenses, you might consider delaying Social Security benefits to allow them to grow. However, if you face immediate financial needs or lack other substantial income streams, claiming benefits earlier, even at a reduced rate, could be necessary to maintain your standard of living.

Working while receiving Social Security benefits before your full retirement age can impact your payments due to the earnings test. In 2025, if you are younger than your FRA, $1 in benefits will be withheld for every $2 you earn above $23,400. In the calendar year you reach your FRA, the limit is higher, at $62,160 in 2025, with $1 withheld for every $3 earned above this limit until the month you reach your FRA. Once you reach your full retirement age, the earnings test no longer applies, and there is no limit on how much you can earn without affecting your Social Security benefits. Any benefits withheld due to the earnings test are not permanently lost; they are added back to your monthly payments once you reach your FRA.

Spousal and survivor benefits add another layer of complexity. A spouse may receive up to 50% of their partner’s primary insurance amount, reduced if claimed before their own FRA. For couples, the higher-earning spouse often delays claiming to maximize the potential survivor benefit. Survivor benefits allow eligible family members to receive payments based on the deceased worker’s earnings record. A surviving spouse can receive 100% of the deceased spouse’s benefit if claimed at their own FRA or later, but the amount is reduced if claimed earlier.

Finally, the taxation of Social Security benefits is an important consideration. Your benefits may be subject to federal income tax depending on your “combined income,” which includes your adjusted gross income, tax-exempt interest, and half of your Social Security benefits. For individual filers, if combined income is between $25,000 and $34,000, up to 50% of benefits may be taxable; above $34,000, up to 85% may be taxable. For married couples filing jointly, if combined income is between $32,000 and $44,000, up to 50% may be taxable; above $44,000, up to 85% may be taxable. Understanding these income thresholds helps in planning your overall retirement income strategy.

The Application Process

Once you decide on the optimal time to begin receiving Social Security retirement benefits, the next step involves the application process. It is advisable to apply for benefits several months before you wish payments to begin, typically three months in advance. This allows ample time for the Social Security Administration (SSA) to process your application, as it can take six weeks or more for benefits to start.

To complete your application, you will need to gather specific information and documents. These include:
Your Social Security card or a record of your Social Security number.
Your original birth certificate or a certified copy, and proof of U.S. citizenship or lawful alien status if you were not born in the U.S.
Your W-2 forms from the previous year or your self-employment tax return if you are self-employed.
Details about your current or former spouse(s), including their Social Security numbers, dates of birth, and marriage/divorce information, if applicable.
Your bank’s routing number and account number for direct deposit.

You have several options for submitting your application. The fastest method is to apply online through the SSA’s website at ssa.gov. You can also apply by phone or in person at a local Social Security office. After applying, you can check the status of your application online through your “my Social Security” account. The SSA will notify you of their decision.