Social Security retirement explained: What you need to know before retiring

Planning for retirement is one of the most important steps toward financial stability. And for many people, Social Security is a key part of that plan. But how does Social Security retirement really work? When should you claim it? And how can you make sure you’re getting the most from it?

In this article, we explain everything you need to know about Social Security retirement: how it works, when to claim, how much you can expect, and smart ways to boost your benefit.

What is Social Security retirement and how does it work?

Social Security is a federal program that provides monthly payments to people who have retired, based on the amount they earned and contributed during their working years. Most people qualify after working and paying Social Security taxes for at least 10 years (or 40 quarters).

Your monthly benefit is calculated based on your highest 35 years of earnings. The Social Security Administration (SSA) uses this to determine your average indexed monthly earnings (AIME), which then affects your final benefit amount.

You can check your estimated benefit by creating an account on the SSA website and viewing your personal earnings history.

When should you start claiming Social Security?

You can start receiving Social Security retirement benefits as early as age 62. However, claiming early means your monthly payments will be permanently reduced. Your full retirement age (FRA) depends on your birth year—usually around age 66 or 67.

If you delay claiming benefits beyond your FRA, your monthly payment increases each year you wait, up to age 70. After that, there’s no financial advantage to waiting longer.

Here’s a simplified comparison:

Claiming Social Security by age

As you can see, the difference can be significant over time. Claiming at 62 might make sense if you need the money now or have health concerns. But if you can wait, your monthly check will be noticeably larger.

Pros and cons of claiming early vs. waiting

There’s no one-size-fits-all answer for when to claim Social Security retirement. It depends on your financial situation, health, and other income sources.

Pros of claiming early:

You’ll start getting money sooner, which can help if you stop working before age 67 or don’t have other savings. For some, even a smaller benefit is better than none.

Cons of claiming early:

Your monthly benefit is permanently lower. Over time, this adds up—especially if you live into your 80s or 90s.

Pros of waiting:

Delaying past your full retirement age increases your monthly payments. This can help you maintain your standard of living later in life, especially if inflation rises or you face unexpected medical costs.

Cons of waiting:

You’ll need to cover your expenses in the meantime, either by working longer or relying on other income sources. And if you don’t live long enough, you may not fully benefit from the higher payments.

The key is to balance what you need now versus what you might need later.

How to apply for Social Security retirement benefits

When you decide it’s time to claim your benefits, the process is simple but should be done in advance. You can apply:

• Online at SSA.gov
• By phone at 1-800-772-1213
• In person at a local Social Security office (with appointment)

You should apply about three months before you want your payments to start. You’ll need your Social Security number, birth certificate, W-2 forms or self-employment tax returns, and possibly your bank account info for direct deposit.

Once approved, payments typically begin the month after your chosen start date.

Tips to make the most of your Social Security benefits

Maximizing your Social Security benefits doesn’t start when you retire—it starts years before. One of the most important steps is to check your earnings record regularly through your online SSA account. Errors in your reported income can lower your future benefits, so it’s important to correct any mistakes as soon as possible.

Another key strategy is to work for at least 35 years if you can. Social Security calculates your benefit using your highest 35 years of earnings. If you worked fewer years, the calculation will include zeros, which can bring down your monthly payment.

Increasing your earnings over time can also boost your benefit. While there is a cap on how much income is subject to Social Security taxes, higher income within those limits will raise the average used in your benefit calculation.

If you’re married, coordinating your filing strategy with your spouse can also make a big difference. For example, one spouse may decide to claim early while the other waits to receive a higher amount later. This can be helpful in managing household income over the long term.

It’s also wise to avoid common financial mistakes that can affect your retirement security. These include underestimating expenses, relying only on Social Security, or taking benefits too early without a backup plan. If you’re unsure where to start, check out this useful guide on mistakes that first-time investors should avoid.

Finally, remember that Social Security is just one part of your retirement. Having other income sources—like a 401(k), IRA, or savings—can give you more flexibility and peace of mind. Planning early, staying informed, and using all available tools will help you make better decisions about your retirement income.

Reliable resources and calculators

To help with your planning, there are several trustworthy tools available:

• SSA: Official source for your earnings record, benefit estimates, and to apply online.
• AARP Social Security Calculator: Easy-to-use tool to estimate your monthly benefit based on when you plan to retire.
• My Social Security account: Create an account to view your personalized retirement dashboard.

Using these tools, you can run scenarios to see how your benefit changes based on age, income, or filing strategy.

Social Security retirement is a core part of financial planning in the United States. Whether you’re approaching retirement or just starting to think about the future, understanding how the system works can help you make smarter decisions.

Choosing when to claim is one of the biggest decisions you’ll make—and it’s personal. The right age depends on your health, finances, and goals. But with good information and planning, you can make a choice that supports the retirement you want.

Don’t wait until the last minute. Review your earnings record, explore your options, and plan ahead. A little preparation now can give you more peace of mind later.