Are you planning to claim Social Security in 2025? You should know the best age to claim your Social Security, as the age at which you claim it is highly important to maximize the benefit. The article can help you decide on the Social Security claim age and other related matters.
Social Security gets its funds through the payroll taxes, so people usually think they should claim it either way, as it’s their money, so it’s better to claim it at the age of 62, which is the general retirement age.
But it’s been established that claiming Social Security a little later can help in many ways; you can get higher benefits that would last longer. When to claim Social Security is all up to you, so make it big.
When can you claim Social Security in 2025?
To understand when is the best time to claim Social Security, you should know at what age it is claimable:
- Early 62:
- Social Security can be claimed once you reach the age of 62, which is called early retirement; however, there will be a reduction in your Social Security benefit by 30%.
- Full Retirement age:
- The SSA has a full retirement age, where you will receive 100% of your benefit with no reduction. The FRA increases by 2 months per birth year for those born between 1964 – 1981.
- The FRA for the 2025 Social Security benefit is 66 years and 10 months, and it will be raised to 67 in 2026 for people born in or after 1960.
- Delayed Retirement at the age of 70:
- You can wait and claim your Social Security at the age of 70, where you will receive your benefit at a much higher rate.
- At 70 years of age, you will receive your Social Security with an increase of 8% based on your age.
What is the best age to claim Social Security in 2025?
Now that you are aware of the options, when can you claim your Social Security in 2025? Let’s see what the best age is for you to claim Social Security. The best age depends on what’s your situation and how you want your benefit to be, such as:
- If you are someone with a shorter life expectancy, early retirement is best for you, or you have no income or work that can help with your living expenses.
- Now, if you want to balance the benefit or the full retirement benefit, you should claim it at the full retirement age. And if you are working, you can also unlock the other benefits or contribute to the benefit.
- Now, you can wait for the Social Security benefit, or if you have income or are working, you can wait till the age of 70 and maximize your benefit.
The Social Security Administration generally advises to at least wait till the FRA or, best, till 70 to get the most of your benefit and expect the Social Security to last longer, as early retirement can phase out your benefit early.
What are the common mistakes you should avoid?
Many Social Security claimants make the following common mistakes that later cost them their Social Security benefits:
- Wrong Calculation of FRA: Many people miscalculate their full retirement age and end up claiming the benefit before reaching the FRA, which affects their benefit.
- Understand what works for you: Waiting to claim the Social Security benefit till FRA or 70 may not work for everyone because if you have a short life expectancy, it’s unnecessary to claim it late.
- Early Claim: Many people claim the Social Security benefit at the age of 62, which affects their future payout and living expenses. So, if you have a high life expectancy and want your benefit to at least go beyond the age of 82, you should wait to claim the benefit.
- Not considered the spousal benefits: The retirees often ignore the spousal benefits, though they can increase their retirement income. Your spouse can get 50% of your Social Security Primary Insurance Amount when they claim it on FRA.
- Not considering Survivor benefit: If the spouse passed away, the survivor will be eligible for the deceased benefit based on the claiming age, hence it’s important to consider it to ensure your spouse receives the highest benefit.
- Dependent on Social Security: You should not fully depend on Social Security for your living expenses; you must save money and wisely plan your future.
What’s the annual earnings limit while working and receiving Social Security?
The Social Security recipients who work and receive Social Security should understand its effect on their benefits:
- If you claim the benefit before FRA and are still working, the agency will deduct $1 for every $2 you earn over the limit, $23,400.
- If you reach the FRA in 2025, then your benefit payment will be reduced by $1 for every $3 you earn above the limit of $62,160 until the month you attain the FRA age.
The SSA requires the retirees to report their income to the agency and any changes to their earnings. However, one thing you should remember is that if your benefit was withheld because of your earnings, your monthly benefit based on the FRA will increase once you reach the FRA age.
Disclaimer: This content provides general guidance on the best age to claim Social Security benefits. Individual circumstances may vary—consult the SSA for personalized advice.
