Understanding Social Security Benefits

What Every Retiree Should Know

Updated: September 2026
Written by: Golden Living Today Editorial Team
Sources reviewed: September 2026

Social Security provides a valuable source of income for millions of retirees, disabled individuals, and surviving family members. Understanding how Social Security works can help you make informed decisions about when to claim benefits and how to maximize your retirement income.

🏛️ Government Benefits Disclaimer: Golden Living Today is an independent informational website and is not affiliated with, endorsed by, or sponsored by the Social Security Administration, Medicare, Medicaid, or any other government agency. Program rules, eligibility requirements, benefits, and costs may change. Always verify current information through the appropriate official government agency.

💰 Financial Disclaimer: The information provided in this article is for general educational and informational purposes only and should not be considered financial, investment, tax, or retirement planning advice. Individual financial situations vary. Consider consulting a qualified financial or tax professional before making decisions about your finances.

What Is Social Security?

Social Security is a federal program that provides monthly income to eligible retirees, individuals with disabilities, and certain family members. Benefits are funded primarily through payroll taxes collected during a person’s working years.

Who Qualifies for Benefits?

Most workers earn Social Security credits by working and paying Social Security taxes. Generally, you need 40 credits—about 10 years of work—to qualify for retirement benefits.

Credits determine whether you qualify for retirement benefits, but your monthly benefit amount is based primarily on your earnings history and the age at which you begin receiving benefits.

How Your Social Security Benefit Is Calculated

Your retirement benefit is based largely on your lifetime earnings and the age at which you begin receiving benefits.

Social Security generally uses your highest 35 years of earnings when calculating your retirement benefit. If you have fewer than 35 years of earnings, years without earnings may be counted as zeros.

You can view a personalized estimate of your future retirement benefits through your my Social Security account.

When Can You Start Collecting?

Many people can begin receiving Social Security retirement benefits as early as age 62. However, claiming benefits before reaching full retirement age typically results in a permanently reduced monthly benefit.

Full Retirement Age Explained

Your Full Retirement Age (FRA) is the age at which you can receive your full, unreduced retirement benefit. FRA depends on your year of birth and ranges from age 66 to 67 for people born in 1943 or later.

For anyone born in 1960 or later, Full Retirement Age is 67.

Claiming before your FRA generally reduces your monthly benefit, while delaying benefits beyond FRA can increase your monthly payment up to age 70.

Early vs. Delayed Benefits

Claiming benefits early provides income sooner but reduces monthly payments.

Delaying benefits beyond your FRA can increase your monthly benefit until age 70.

There is no additional increase for delaying retirement benefits beyond age 70.

The best claiming age depends on factors such as your financial needs, health, expected longevity, work plans, other retirement income, and family circumstances.

Delaying Social Security does not necessarily mean you should delay Medicare. Medicare enrollment rules are separate, so review your Medicare eligibility around age 65.

Benefits for Spouses, Divorced Spouses, and Survivors

A spouse may qualify for Social Security benefits based on a husband’s or wife’s work record. At Full Retirement Age, a spouse benefit may be worth up to 50% of the worker’s full retirement benefit.

If you qualify for both your own retirement benefit and a spouse benefit, Social Security generally pays your own benefit first and then adds any additional spouse benefit needed to bring your total payment to the higher eligible amount.

Some divorced spouses may also qualify for benefits based on a former spouse’s work record. Generally, you must be at least age 62, currently unmarried, and have been married to your former spouse for at least 10 years. Other eligibility requirements may also apply.

Surviving spouses may qualify for survivor benefits beginning as early as age 60, or age 50 if disabled. The amount depends on factors such as age and the deceased spouse’s benefit record.

Because spouse, divorced-spouse, and survivor rules can be complicated, contact Social Security or review your options carefully before deciding when to claim.

🌿Important update: The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) have been repealed. Social Security no longer applies these reductions to benefits payable for January 2024 and later.

Working While Receiving Benefits

You can work while receiving Social Security retirement benefits. However, if you are younger than Full Retirement Age, some benefits may be withheld if your earnings exceed the annual limit.

For 2026:
• If you are under Full Retirement Age for the entire year, the earnings limit is $24,480. Social Security generally withholds $1 in benefits for every $2 earned above the limit.
• During the year you reach Full Retirement Age, the limit is $65,160 for earnings before the month you reach FRA. Social Security generally withholds $1 for every $3 earned above that amount.
• Beginning with the month you reach Full Retirement Age, there is no earnings limit.

For purposes of the earnings limit, Social Security generally counts wages from a job and net earnings from self-employment. Income such as pensions, annuities, investment income, interest, and most other government benefits does not count toward the earnings limit.

Benefits withheld because of the earnings test are not necessarily lost permanently. Social Security may recalculate your monthly benefit after you reach Full Retirement Age to account for months when benefits were withheld.

Are Social Security Benefits Taxable?

Social Security benefits may be subject to federal income tax depending on your filing status and other income. Generally, if you are single and one-half of your Social Security benefits plus other income, including tax-exempt interest exceeds $25,000, part of your benefits may be taxable. For married couples filing jointly, the corresponding amount is $32,000.

For some taxpayers, up to 85% of Social Security benefits may be included in taxable income. This does not mean Social Security is taxed at an 85% tax rate.

🌿 Important tax update: For tax years 2025 through 2028, eligible taxpayers age 65 or older may claim an additional federal deduction of up to $6,000 per person, or up to $12,000 for a married couple filing jointly if both spouses qualify. The deduction begins to phase out at higher income levels. This is separate from the rules used to determine whether Social Security benefits are taxable.

Because tax rules and individual circumstances vary, review current IRS guidance or consult a qualified tax professional.

How to Apply

You can apply:
• Online through the Social Security Administration
• By phone: 1-800-772-1213 (SSA currently lists hours as Monday–Friday, 8 a.m.–7 p.m. local time.)
• At your local Social Security office (SSA recommends calling first if visiting a local office.)
You can apply for retirement benefits up to four months before you want your benefits to begin.

Where to Get Help

For questions about Social Security benefits, eligibility, or applying:
• Visit the Social Security Administration at SSA.gov
• Call 1-800-772-1213, Monday–Friday, 8 a.m.–7 p.m. local time
• Use the SSA Office Locator to find a local Social Security office
• Sign in to your my Social Security account to review your earnings record and personalized benefit estimates
• For individual retirement or tax decisions, consider consulting a qualified financial or tax professional

🌿 Golden Moment

Planning for retirement is one of the greatest gifts you can give yourself. The more you understand your Social Security benefits today, the more confidently you can enjoy tomorrow.

Related Articles

Looking for more information about retirement and healthcare? Explore these related articles:

• Managing Money in Retirement: A Practical Guide

Learn practical ways to create a retirement budget, manage everyday expenses, protect your savings, and prepare for unexpected costs.

• Understanding Medicare: A Beginner’s Guide

Learn how Medicare Parts A, B, C, and D work, when to enroll, and what to consider when choosing healthcare coverage.

• Understanding Medicaid: A Beginner’s Guide

Learn how Medicaid works, who may qualify, what services may be covered, and where to apply for assistance.

📚 Sources & Further Reading

• Social Security Administration — Retirement Benefits

• Social Security Administration — Get a Benefits Estimate

• Social Security Administration — Full Retirement Age and Delayed Retirement

• Social Security Administration — Working While Receiving Benefits

• Social Security Administration — Spouse and Family Benefits

• Social Security Administration — Survivor Benefits

• Social Security Administration — Apply for Retirement Benefits

• Social Security Administration — 2026 Cost-of-Living Adjustment Fact Sheet

• Internal Revenue Service — Social Security Income

• Social Security Administration — Pensions and Work Abroad / WEP and GPO Changes