Social Security: A Guide for Seniors Approaching Retirement

Social Security retirement benefits provide financial support to individuals who have retired and meet specific work history requirements. These benefits replace a portion of pre-retirement income and are managed by the Social Security Administration (SSA). The following guide breaks down the general eligibility requirements, benefit amounts, recent legislative updates, and key considerations for seniors.

Social Security, often referred to simply as “Social Security,” is a government program designed to provide financial support to eligible retirees and their families. These benefits come in the form of monthly payments and are intended to help cover living expenses during retirement. Social Security is funded through payroll taxes, which are collected from workers and their employers throughout a person’s career. These taxes support not only retirees but also:

Individuals with disabilities who are unable to work
Survivors of deceased workers, including spouses and children
Dependents of eligible beneficiaries who meet specific criteria

As individuals work and pay Social Security taxes, they earn credits that count toward future retirement benefits. The number of credits required for eligibility depends on the year of birth, but most people need 40 credits, equivalent to about 10 years of work, to qualify for retirement benefits. Once enough credits are accumulated, retirees can apply for benefits and receive monthly payments for the rest of their lives.

Factors That Influence Benefit Amounts

Several key factors determine the amount a retiree can receive from Social Security:

Age at Retirement: The age at which you begin receiving benefits has a major impact. Claiming benefits before reaching full retirement age results in reduced payments, while delaying benefits past full retirement age can increase monthly payments.
Total Lifetime Earnings: Social Security benefits are calculated based on your average indexed monthly earnings over your working career. Higher lifetime earnings generally lead to higher monthly benefits.
Eligibility for Other Pensions: Receiving benefits from other retirement plans or pensions may influence your Social Security payments. In some cases, benefits can be reduced depending on the type and amount of other income (see the “Pensions” section for more details).

Other considerations, such as cost-of-living adjustments (COLAs) and spousal or survivor benefits, can also affect the total benefit amount a retiree ultimately receives. Keep reading the sections below for more information on both.

Department	Phone Number	Email	Office Locator
Social Security Administration (SSA)	1-800-772-1213	Email SSA	Find SSA Office

Recent Legislation: What Seniors Should Know

The One Big Beautiful Bill (OBBB), enacted in 2025, introduces a series of tax reforms that primarily aim to reduce taxes for working Americans and retirees. Key provisions affecting seniors include a new tax deduction for those aged 65 and older.

Senior Tax Deduction (2025–2028):

$6,000 for individuals
$12,000 for married couples filing jointly

Income Limits:

Begins phasing out for individuals earning over $75,000 and couples earning over $150,000
Fully phased out at $175,000 for single filers or $250,000 for joint filers

This deduction applies regardless of whether a senior takes the standard deduction or itemizes. While it doesn’t exempt Social Security benefits from taxation, lowering taxable income may reduce the portion of benefits subject to federal taxes.

Not everyone qualifies automatically for Social Security retirement benefits. To receive payments, seniors must meet specific age and work history requirements. This section explains the credits you need, the age rules, and how your work and earnings determine when and how much you can receive.

Work Credit Requirements

To qualify for retirement benefits, seniors must earn a minimum of 40 work credits, typically achieved through 10 years of employment. Credits are accumulated by paying Social Security taxes.

Seniors who stop working before reaching 40 credits do not lose previously earned credits.
Up to 4 credits can be earned per year.
In 2025, 1 credit is awarded for every $1,810 of earnings; 4 credits are earned once $7,240 is reached.

Note: Accumulating more than 40 credits does not increase retirement benefit amounts.

Age Requirements and Collecting Benefits

The age at which you choose to start collecting Social Security retirement benefits has a direct impact on the amount you receive. While you can begin as early as 62, waiting until your full retirement age—or even beyond—can increase your monthly payments. This section breaks down how age affects benefits, including early retirement reductions and delayed retirement credits.

Early Retirement

Seniors can start receiving benefits at age 62.
Benefits collected before full retirement age (FRA) are reduced.
FRA varies based on birth year, as shown below:

Birth Year	Full Retirement Age
1943–1954	66
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 or later	67

Benefit Reductions for Early Retirement

Starting benefits before FRA reduces monthly payments by 20–30%, depending on the number of months prior to FRA.
For example, a retiree whose FRA is 66 and begins benefits at 62 may see a reduction of approximately 25%.
Detailed reduction charts are available on the SSA website: https://www.ssa.gov/oact/quickcalc/earlyretire.html .

Delayed Retirement

Seniors who postpone benefits past FRA can increase their payments through delayed retirement credits, up until age 70.
The credit percentage varies by birth year, ranging from 3% to 8% per year of delay.

Birth Year	Annual Credit for Delayed Benefits
1917–1924	3%
1925–1926	3.5%
1927–1928	4%
1929–1930	4.5%
1931–1932	5%
1933–1934	5.5%
1935–1936	6%
1937–1938	6.5%
1939–1940	7%
1941–1942	7.5%
1943 and later	8%

To start receiving Social Security retirement benefits, it’s important to apply about four months before you want payments to begin. For example, if you want benefits to start at age 62, plan to submit your application at 61 years and 8 months.

You can apply in three ways:

Online
By phone
In person

Applying Online

Visit the Social Security website: https://secure.ssa.gov/iClaim/rib
Sign in to your mySocialSecurity account and select “Start a New Application.”
Complete the required information (see the “Documents Needed” section below).
Submit your application. You will receive a confirmation number—keep it for your records.
The SSA will process your application and mail its decision.

Applying by Phone

Call 1-800-772-1213 (Monday–Friday, 8 AM–7 PM).
For those who are deaf or hard of hearing, call 1-800-325-0778.

Applying In Person

Visit your local SSA office. Find an office here: https://secure.ssa.gov/ICON/main.jsp
It’s recommended to schedule an appointment in advance.

Information and Documents Needed to Apply

When applying, you’ll need personal information to verify your application, including:

Social Security Number (SSN)
Employers’ names and employment dates for the past two years
Self-employment income details, if applicable
Bank information for direct deposit
Marriage and divorce information
Military service history
Information on eligible family members

Documents that are often required:

Original or certified birth certificate (issued before age 5)
If unavailable, two alternative documents such as school records, vaccination records, census records, or hospital admission records
Proof of U.S. citizenship
Previous year’s tax return
Military service papers (if applicable)

How Much You Can Receive in Retirement Benefits

The amount you receive from Social Security in retirement is based primarily on your lifetime earnings. The Social Security Administration (SSA) looks at all your work history where you paid Social Security taxes and adjusts your earnings to reflect changes in wage levels over the years. This ensures that benefits keep pace with overall economic growth.

To calculate your benefits, the SSA averages your 35 highest-earning years. This average is then used to determine your primary insurance amount (PIA)—the monthly payment you would receive if you begin benefits at your full retirement age (FRA). If you start collecting benefits before FRA, your monthly payments will be reduced; if you delay past FRA, your payments may increase due to delayed retirement credits.

Using the SSA Online Benefit Calculator

The SSA provides an easy-to-use online retirement estimator to give you a personalized estimate of your future benefits. To use the calculator, you will need:

Full name
Social Security Number (SSN)
Date and place of birth
Mother’s maiden name

The tool uses your earnings record to generate an estimate of your retirement benefits at different ages, helping you plan when to start collecting Social Security to maximize your income.

Important Considerations:

Estimates are based on current law and your reported earnings. Future changes in law, taxes, or your earnings history can affect your actual benefits.
Cost-of-living adjustments (COLA) can increase your benefits over time to help offset inflation.
- See the next section for more information.
The calculator does not account for certain situations, such as benefits for spouses, ex-spouses, or children.

Cost of Living Adjustments (COLA)

Social Security benefits are designed to provide a stable source of income throughout retirement. To help maintain the purchasing power of these benefits, the Social Security Administration (SSA) reviews the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) each year. When prices rise due to inflation, the SSA may apply a Cost of Living Adjustment (COLA) to increase monthly payments.

COLA ensures that Social Security keeps pace with the rising cost of goods and services, such as housing, food, utilities, and healthcare. Without these adjustments, retirees’ benefits could lose value over time, making it harder to cover everyday expenses.

How COLA is Calculated: The SSA compares the average CPI-W from the third quarter of the current year to the same period in the previous year. If prices have increased, a corresponding percentage is added to Social Security benefits.
Impact on Benefits: Even small percentage increases can make a meaningful difference over time, helping seniors keep up with inflation and maintain their standard of living.

For 2025, beneficiaries can expect to receive a 2.5% increase in their Social Security benefits. For example, a retiree who previously received $2,000 per month would see their payment rise to $2,050, helping offset higher costs of living.

For retirees reaching full retirement age in 2025, the maximum benefit is $4,018 per month. However, only about 6% of Americans qualify for the maximum benefit, as it requires consistently high earnings over 35 years. In fact, if you retire and start collecting benefits at age 62 in 2025, your maximum benefit would be $2,831.

Retirement Benefits for Spouses, Ex-Spouses, and Children

In addition to providing income for retirees, Social Security can also provide benefits to certain family members based on your work record. These payments are separate from your own benefits and do not reduce the amount you receive.

Benefits for Spouses

Current spouses may qualify for Social Security benefits based on your record. The general rules are:

Your spouse must be at least 62 years old to receive retirement benefits.
An exception exists for spouses caring for a child who is eligible for benefits: in this case, the spouse can qualify at any age.
If the spouse is eligible for their own Social Security retirement benefits, they will receive those first. If your benefit is higher, they will receive an additional amount so their total benefit equals the higher of the two.

This allows couples to maximize household income while ensuring each spouse receives a fair share.

Benefits for Ex-Spouses

Divorced individuals may also be eligible for benefits based on an ex-spouse’s work record. To qualify, the ex-spouse must meet all of the following requirements:

The marriage lasted at least 10 years
They are 62 years or older
They have not remarried
They are not entitled to a higher benefit from their own work record or another Social Security record

Important Note: If an ex-spouse receives a pension from a government or foreign job, their benefits based on your record may be reduced unless certain conditions are met. These rules are designed to prevent duplicate payments while still ensuring fair access to benefits.

Benefits for Children

Social Security can also provide benefits to eligible children, including:

Biological children
Adopted children
Stepchildren
Dependent grandchildren

To qualify, children must be unmarried. They must also be under 18 years old, or between 18–19 if they are a full-time student. Children with disabilities that started before the age of 22 may continue to receive benefits even after turning 18.

Conclusion

Social Security retirement benefits are a vital source of income for seniors and their families, helping replace a portion of pre-retirement earnings and providing financial stability throughout retirement. Understanding eligibility, how benefits are calculated, and the options for spouses, ex-spouses, and children can help you make informed decisions about when and how to start collecting benefits.

By planning, using tools like the SSA’s online benefit calculator, and staying informed about cost-of-living adjustments and legislative changes, you can maximize your retirement income and better prepare for a secure financial future.

By Admin – October 2025