When Can You File for Social Security?

Social Security is one of the most important topics to discuss when planning for your retirement. Trying to decide at what age to file for social security is a decision that can affect your retirement income for the rest of your life. In order to determine the best time to file for your Social Security benefits, it is important to fully understand the benefits Social Security provides.

Social Security Benefit Basics And Key Ages 

Social Security benefits are designed to replace a portion of your income when you either retire, become disabled or pass away. Your Social Security benefits are calculated based on your lifetime earnings. When you retire, the amount you receive also depends on the age at which you choose to start receiving benefits. Below are some of the key ages to know when approaching retirement.

1. Early Retirement Age: 62

The earliest you can start receiving Social Security benefits is at age 62. Filing at this age will result in a reduction of your monthly benefits. This reduction would be about 30% compared to your benefit at your full retirement age (FRA). Since this reduction is permanent, it is important to determine if this smaller benefit will hurt your long term financial picture.

If you are still employed while collecting social security benefits before your full retirement age, your social security benefits may be reduced if your earnings are above the yearly earnings limit.

2. Full Retirement Age (FRA): 66-67

Your full retirement age (FRA) is the age at which you are eligible to receive your full Social Security benefits. Your full retirement age is determined by the year you were born. 

• If you were born between 1943 and 1954, the full retirement age is 66. 

• If you were born between 1955 and 1959, the full retirement age gradually increases from 66 and two months to 66 and ten months.

• If you were born in 1960 or later, the full retirement age is 67. 

Filing at your full retirement age ensures that you receive your full monthly benefit amount without any reductions. 

3. Delayed Retirement Age: Up to 70

If you choose to delay filing for Social Security beyond your FRA, your benefits will increase each month you delay, up until age 70. This increase is known as delayed retirement credits and can result in about an 8% increase per year in benefits. This is a significant increase and is an option to consider for those who can afford to wait.

Other Factors To Consider When Filing

1. Health Factors

Although unpleasant to think about, one of the most critical factors to consider is your life expectancy. If you have a serious health condition or a family history of serious health conditions, you may want to consider filing earlier. If you feel that you are in good health and could have a longer life expectancy, you may want to consider delaying your social security benefits to maximize your social security income for retirement.

2. Financial Situation

Not everyone can afford to delay taking social security while others can. Your financial situation plays an important role in deciding when to file for benefits. It is important to take a look at your current as well as future income, expenses, assets and liabilities to make a determination about your benefits. 

3. Still Working?

If you continue working beyond your early retirement age of 62 while collecting social security, your benefits may be reduced if you earn above a certain threshold. 

For those under their full retirement age, $1 is deducted from your benefits for every $2 you earn above the annual limit. In 2024, that limit is $22,320. 

In the year you reach your full retirement age , $1 is deducted from your benefits for every $3 you earn above a different annual limit. In 2024, that limit is $59,520. The earnings are only counted in the months prior to you reaching full retirement age. 

Once you reach the month of your full retirement age, there is no earnings limit. 

4. Married?

Your decision about when to start your social security benefits can also affect your spouse. In the event of your death, filing early may also have reduced the benefit that your spouse will receive for the rest of their life as well. 

Final Thought About Social Security

Deciding when to file for Social Security is an important decision that requires planning. While you can start receiving social security benefits as early as age 62, waiting until your full retirement age or even delaying until 70 can significantly increase your monthly benefits.

A financial advisor may help you determine a suitable course of action to help you reach your retirement goals. HunterRIDGE Wealth Management is a financial planning and wealth management firm based out of Long Island that specializes in helping their clients navigate the difficult financial decisions when planning for retirement. Click below to schedule your complimentary consultation. 

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For educational purposes only. Not to be relied upon as financial, tax, or legal advice. 

This information was obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness, or fairness. We have relied upon and assumed without independent verification the accuracy of all information available from public sources.