Social Security rules are complex. Consequently, many key program benefits are often poorly understood. For the fundamentals, start with 15 things you need to know about Social Security. Though we won’t do a deep dive into each topic, this post seeks to help clarify answers to many common Social Security questions. Let’s dive in.
Key Takeaways
- When to claim: You can start at 62, but waiting boosts your benefit ~7% per year to FRA and ~8% per year until 70 — claiming at 62 permanently trims about 30%.
- Working while collecting: Before FRA, earnings above the 2026 limit ($24,480) temporarily reduce your check; after FRA, there's no earnings penalty.
- Family benefits: Spouses can claim up to 50% of the higher earner's benefit at FRA; surviving spouses get the larger of two checks plus a $255 lump sum; divorced spouses can qualify after a 10-year marriage.
- Rules to know: How your benefit is calculated (top 35 earning years), how COLA adjusts payments each year, and the one-time "do-over" that lets you undo a claim within 12 months.
- Plan for taxes and gaps: Federal taxes hit above $25K single/$32K joint, 8 states also tax benefits, and future changes to the program are possible — treat Social Security as one leg of your income plan.
When can I start receiving Social Security benefits?
You can start claiming Social Security benefits beginning at age 62. However, keep in mind you aren’t entitled to 100% of your Social Security benefits until you hit what’s known as your “full retirement age” (FRA): which is based on your year of birth. For example, if you were born in 1960 or later, your full retirement age is 67.
When should I claim Social Security benefits?
The Cost of Claiming Early
Monthly benefit by claim age (assumes $2,000 full retirement age benefit, FRA 67)
Waiting from 62 to 70 raises monthly income by roughly 77%—for life.
It depends. If you can delay your claim, you should—to avoid leaving a lot of money on the table.
While you can collect benefits as early as age 62, you’ll receive a more robust amount (about 7% higher) each year you wait until reaching your full retirement age. If you wait even longer, the increase rises to approximately 8% each year between your FRA and age 70.
To illustrate, let’s assume your full monthly Social Security benefit is $2,000—the amount you’d receive if you wait until your full retirement age. If you claim benefits at age 62, however, your benefit is approximately 30% lower (or $1,400). As you can see, collecting too early means you could miss out on thousands of dollars a year that can help cover retirement-related expenses such as housing and healthcare. For a more detailed breakdown, check out our more detailed article on the hidden cost of claiming at age 62 vs. 67 vs. 70.
That said, delaying isn’t the right call for everyone. There are legitimate reasons to claim early — health issues, immediate income needs, or spousal strategy among them.
What happens to my Social Security benefits if I die?
Who Qualifies for Survivor Benefits
Four eligibility groups, each with their own rules and benefit calculations.
Group 1
Surviving spouses
When you can claim
As early as age 60 — or 50 if disabled, or any age while caring for the deceased’s child under 16.
Benefit amount
71.5%–100%of deceased’s benefit. Full 100% if you wait until your FRA (age 67).
Group 2
Surviving divorced spouses
When you can claim
If marriage lasted at least 10 years, or you’re caring for the deceased’s child under 16.
Benefit amount
Same as spousesTreated like surviving spouses for benefit calculation purposes.
Group 3
Minor & disabled children
Who qualifies
Under age 18 (or 19 if still in secondary school), unmarried, or any age if disabled before age 22.
Benefit amount
75%of deceased parent’s benefit.
Group 4
Dependent parents
Who qualifies
Parents 62+ who relied on the deceased child for at least half of their financial support.
Benefit amount
75% / 82.5%75% each for two parents; 82.5% for a sole surviving parent.
When one spouse dies before the other, the surviving spouse can receive what’s called a “survivor benefit” that allows him or her to collect a check or the check of the deceased—whichever is higher—regardless of whether the surviving spouse has earned enough credits.
While you already know that benefits are paid to a surviving spouse, what you may not know is that other family members are perhaps also eligible to receive survivor benefits: including your child, stepchild, grandchild, step-grandchild, adopted child, or even a surviving divorced spouse—each under various circumstances.
Furthermore, the Social Security Administration (SSA) will pay an additional one-time lump sum payment of $255 to the surviving spouse provided he/she resided with the deceased at the time of his/her death (if not, that person would need to qualify for benefits based on the deceased’s employment record).
In the absence of an eligible surviving spouse, the lump sum can be paid to the deceased’s child (or children) if—during the month he/she passed—the child was already receiving benefits on the worker’s record or became eligible for benefits upon the worker’s death.
Eligible lump sum recipients must apply for this payment within two years of the date of death—provided they aren’t already receiving benefits.
As someone currently receiving Social Security benefits, would employment affect my benefits at all?
2026 Social Security Earnings Limits
| Your situation | 2026 earnings limit | Benefit withholding |
|---|---|---|
| Under FRA all year | $24,480 | $1 withheld for every $2 earned above the limit |
| The year you reach FRA (months before your birthday) | $65,160 | $1 withheld for every $3 earned above the limit |
| After reaching FRA | No limit | Benefits not reduced regardless of earnings |
FRA = Full Retirement Age (67 for those born after 1960). Source: Social Security Administration, 2026 cost-of-living adjustment publication.
You can work and collect Social Security benefits at the same time. However, keep in mind that if you work prior to your full retirement age, the dollar amount of your monthly Social Security check is sometimes temporarily reduced if you earn more than the yearly earnings limit set by the Social Security Administration (SSA).
Based on 2026 limits, the SSA will deduct $1 from your Social Security benefit payments for every $2 you earn above the annual earnings limit if you remain below your full retirement age for the entire year. In this scenario, the current limit is $24,480. Therefore, if you earn $29,480 annually, Social Security will withhold $2,500 of your benefits (as you’re $5,000 above the earnings limit).
If you work during the year you reach full retirement age, meanwhile, Social Security will deduct $1 for every $3 you earn above the limit. The 2026 limit is $65,160 in this scenario and only includes earnings before the month you reach your full retirement age. Therefore, if you earn $70,000 from January through October and don’t reach full retirement age until November, $1,613 is withheld.
Finally, if you remain employed even after reaching full retirement age, your earnings no longer reduce your benefits no matter how much you earn.
Remember that withholding means the Social Security Administration will actually stop sending you a check until they recoup the amount owed. For example, if you owe $3,500 and your monthly Social Security check is $1,000, you won’t receive a check for four months—with the balance owed to you ($500) refunded at a later date.
Can I collect Social Security benefits on my ex-spouse's record?
How much of your ex-spouse’s Social Security can you get?
Up to 50% of your ex’s full-retirement-age benefit if you claim at your own FRA — provided you were married at least 10 years, are 62 or older, and are currently unmarried. Claiming before your FRA permanently reduces it (as low as 32.5% at 62). It never reduces your ex’s benefit, and your ex is never notified.
Not every divorcee will qualify to receive his or her Social Security benefits based on an ex-spouse’s record. In order to qualify to receive benefits accordingly, the following conditions must be met:
You must be 62 years of age or older.
You must have been married for 10+ years.
You must be divorced for at least two years (this waiting period applies only if your ex-spouse is eligible for but hasn't yet started collecting their benefits).
You must be unmarried.
Your ex-spouse is entitled to Social Security benefits.
The Social Security benefits you’re entitled to based on your own work record must be less than the divorced spouse’s benefit.
These requirements help ensure the marriage was substantial enough to warrant a claim after divorce; a short-term marriage that ends in divorce may fall short of these prerequisites.
If you qualify, you’re entitled to receive up to 50% of your ex-spouse’s retirement benefit if you filed a claim upon reaching full retirement age—while doing so before your full retirement age will result in a permanent benefit reduction. It’s also important to know that the scope of benefits received will not impact those of your ex-spouse and his or her current spouse (if applicable).
How are my Social Security benefits calculated?
The easiest way to determine your current benefit is to log in to the SSA website and learn the exact amount of your monthly benefit based on various retirement ages.
However, keep in mind that this number changes every year based on a variety of factors—none more crucial than your reported earned income over your working life (with your benefit based on the 35-year period during which you earned the most money).
Can I receive Social Security benefits if I am disabled?
Yes, but you’ll need to meet the definition of disability under the Social Security Act to do so. For clarity, this means you’re unable to work due to a severe medical condition that has lasted—or is expected to last—at least one year (or result in death). Your medical condition(s) must also prevent you from performing work you did in the past and adjusting to other types of work as well.
What’s the difference between SSDI and SSI?
Social Security Disability Insurance (SSDI) is an earned benefit that supports individuals who are disabled with a qualifying work history—either through their own employment or a family member (spouse/parent). To qualify, applicants must have physical and mental impairments severe enough to prevent them from successfully performing their normal occupation (or substantial paying work) and are expected to last at least 12 months (or end in death).
Supplemental Social Security Income (SSI), meanwhile, is a safety net program that provides basic financial assistance to those with disabilities (regardless of age) who have limited income and financial resources spanning savings, investments, vehicles, properties, etc.
How do I apply for Social Security benefits?
When you decide to collect your monthly Social Security benefits, you must apply with the SSA either online, in-person, or over the phone by calling 1-800-772-1213.
How do I replace a lost or stolen Social Security card?
Those who need a replacement card can apply for one on the SSA website, call 800-772-1213, or visit a local Social Security office.
What is the maximum Social Security benefit I can receive?
In 2026, the maximum monthly benefit is $5,181. However, qualifying for this amount isn’t always so easy. For example, you’ll need to delay claiming Social Security until the age of 70 and work at least 35 years. The income you’ve earned must also reach or exceed the wage cap (the income threshold whereby you stop paying Social Security taxes on every dollar you earn beyond that amount) for 35 years. In 2026, the wage cap is $184,500.
Are my Social Security benefits liable to tax?
8 States That Tax Social Security (2026)
Rules and income thresholds vary by state—check with a tax professional.
Federal taxes also apply when combined income exceeds $25K (single) or $32K (joint).
Unfortunately, Uncle Sam doesn’t retire when you do. In fact, your Social Security benefits are sometimes taxed at the federal level depending on the earnings listed on your income tax return. If your total income is more than $25,000 (for an individual) or $32,000 (for a married couple filing jointly) in 2026, you must pay taxes on your Social Security income.
As of 2026, some states—8 to be exact—also apply a state tax. These include Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont.
The amount of your benefits subject to tax, at either the federal or state level, varies based on income level. With that said, it’s critical to consider taxes when calculating your cash flow needs during retirement.
How do Social Security spousal benefits work?
While you can qualify for spousal benefits in a variety of ways, the most common scenario is that your spouse has already filed for Social Security benefits, you’ve been married at least 10 years, and are at least 62 years of age: all of which mean you’re eligible.
If you decide to claim a spousal benefit, your benefit amount is based on the age you retire and the amount your spouse qualifies for. Nevertheless, the most you can earn is 50% of your spouse’s total SS benefit, and you’ll need to wait until your full retirement age to receive this entire proportion.
If you file a claim any earlier, your benefit will see a permanent reduction to as little as 32.5% of your spouse’s benefit. More specifically, spousal benefits are reduced by 25/36 of 1% for each month prior to normal retirement age—up to 36 months; if the number of months exceeds 36, the benefit is further reduced by 5/12 of 1% per month (and, just in case you’re wondering, we didn’t make up these formulas!).
What is the Social Security 5-year rule?
While unfortunate, it’s not uncommon for someone to recover from a previous disability, return to work for a while, and then eventually find it necessary to cease working due to his/her disability. The Social Security 5-year rule helps former Social Security Disability Insurance (SSDI) recipients by expediting the process necessary to reinstate their benefits. More specifically, if their income falls beneath the threshold SSA sets as “substantial gainful activities” at any time within five years of a benefits stoppage ($1,690 for non-blind individuals in 2026), they can resume their SSDI benefits without the need to reapply.
What’s a Social Security do-over?
Social Security does provide the chance for a “do-over”: meaning that if you claimed your benefit and then regretted doing so for any reason, you can “withdraw the application” and restart the benefit at a higher amount (based on the age you reapply).
However, know that you can take this mulligan only once—within the first 12 months of claiming benefits—and you’ll need to pay back all benefits you and your family receive.
What is COLA, and how does it work?
The Social Security Administration (SSA) is required by law to prevent inflation from eroding the purchasing power of benefits paid to recipients and therefore makes cost-of-living adjustments (COLA), which are automatic increases in benefit amounts. One way to think of COLA is like a “raise” in your Social Security paycheck (the 2027 COLA is 3.6%).
Cost-of-living adjustments are based on the Consumer Price Index (CPI-W), which tracks retail prices as they affect urban hourly wage earners and clerical workers. The Bureau of Labor Statistics calculates these adjustments on a monthly basis, and the Social Security Administration announces them every October. Recipients typically see their corresponding benefit beginning in January the following year.
Will Social Security still be around when I retire?
You’ve likely seen the headlines. Here’s the current picture: according to the 2026 Social Security Trustees Report, the combined OASI and DI trust funds are projected to be able to pay full scheduled benefits through 2034. After that — absent Congressional action — incoming payroll taxes would still cover roughly 83% of scheduled benefits, meaning benefits wouldn’t disappear but could be reduced if lawmakers don’t act.
Historically, Congress has stepped in before trust fund shortfalls to adjust the program (the last major overhaul was in 1983), and Social Security remains one of the most politically protected benefits in the federal budget. That said, benefits are not contractually guaranteed, and future adjustments — to the retirement age, the payroll tax cap, the benefit formula, or taxation of benefits — are possible.
The practical takeaway: plan on Social Security being part of your retirement income, but not all of it. Building additional streams of income through retirement accounts, taxable investments, and other sources remains more important than ever.
Once I start collecting, can I temporarily suspend benefits?
If you’ve reached full retirement age and are under age 70, Social Security allows you to suspend your retirement benefits. You can reinstate benefit payments at any time until the month you turn 70, however, which is when they’ll automatically kick in once again if you don’t take action otherwise.
By suspending your benefit payments, you’ll earn delayed retirement credits for each month your benefits are suspended: resulting in a higher benefit payment to you (approximately 8% per year).
Have questions about Social Security? Schedule a FREE discovery call with one of our CFP® professionals to get them answered.
Reviewed for accuracy
Paul Muller, AEP®, CFP®
Founder and Relationship Manager at Vision Retirement, with 30+ years in the financial industry.
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Disclosures:
This document is a summary only and is not intended to provide specific advice or recommendations for any individual or business.
