Social Security
Social Security will be a primary source of income for many Americans in retirement. It is important to evaluate when to start your Social Security benefits.
Steps to Review Your Options
Set up your online account at ssa.gov to view your projected monthly benefit.
Determine your full retirement age, which is based on your birth year.
Review your online Social Security statement and write down your projected amounts.
Considerations for Social Security Planning
Facts and figures
Social Security considers your best 35 years of earnings
You can claim a retirement benefit as early as 62 and as late as 70
In 2024, the average Social Security benefit is about $1,907/month*
You are entitled to a retirement benefit if you’ve earned 40 credits
You may be able to claim on a spouse’s or former spouse’s record
Your benefit is based on earnings, years of service and claiming age
Trying to decide when to start Social Security benefit payments?
For each month that you start Social Security payments prior to your full Social Security Retirement age, your benefit is reduced. If your Social Security full retirement age is 67, beginning a payment at age 62 will reduce your monthly benefit payment by approximately 30%.
For each year you delay starting your Social Security payments past your Full Retirement Age, your benefit is increased 8% plus any cost of living adjustment that may be provided in any given year. You may only delay the start of your Social Security payments up to the age of 70.
If married, you and your spouse are a team for Social Security benefits. Being strategic about when to start or delay benefits may help you and your spouse get the most out of your Social Security payments.
Could taking a distribution from my retirement plan affect the taxation of my Social Security benefit payments?
It's possible. Distributions from pre-tax retirement savings accounts, like a 401(k) or 403(b), are taxable and increase your income at retirement. This could possibly result in taxation of a portion of your Social Security benefits.
The taxation of your Social Security benefit depends on whether you exceed a certain level of total income in retirement. Roth 401(k) or Roth IRA distributions are not includable as income in this calculation under current law. They would not affect income taxes on your Social Security benefits.
For more information, visit ssa.gov.
* Social Security Administration. (October 2023). Fact Sheet: 2024 Social Security Changes. Retrieved from Social Security Changes - COLA Fact Sheet (ssa.gov)