You’ve decided that 2025 is the year you’re finally going to claim Social Security. Perhaps it’s the year you’re retiring as well. It’s an exciting change, and those monthly benefits can be a big help when it comes to paying your bills. But it’s also important to prepare before you apply.
Doing the following three things can ensure you don’t accidentally shortchange yourself. So take some time in these last few days of 2024 to give them some thought.
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The government bases your Social Security benefits on your income during your working years and your age at sign-up. You qualify for your full benefit, known as your primary insurance amount (PIA), at your full retirement age (FRA). FRA varies by birth year as shown in the table below:
Birth Year
Full Retirement Age (FRA)
1943 to 1954
66
1955
66 and 2 months
1956
66 and 4 months
1957
66 and 6 months
1958
66 and 8 months
1959
66 and 10 months
1960 and later
67
Source: Social Security Administration.
You can claim as early as 62 regardless of your FRA. But doing so reduces your monthly checks. Specifically, you lose 5/9 of 1% per month (6.67% per year) for your first 36 months of early claiming. Those who sign up more than three years early lose another 5/12 of 1% for each month above 36 (5% per year).
Put another way, your checks grow for every month you delay benefits and this doesn’t stop at your FRA. Your checks will continue to increase past your FRA at a rate of 2/3 of 1% per month (8% per year) until you qualify for your maximum benefit at 70.
This doesn’t mean delaying benefits is always your best move, though. If you have a short life expectancy or you cannot afford to pay your bills without Social Security, it’s usually worth applying earlier. But if neither of those things apply, you may be able to significantly increase your lifetime benefit by delaying Social Security.
If you’re not sure what the best claiming age for you is, make a my Social Security account. There’s a calculator here that can help you estimate your benefit at every claiming age. Choose a few you’re considering. Then multiply your estimated monthly benefit by the number of months you expect to claim to see what kind of lifetime benefit each claiming age could give you.
The Social Security Administration gets its information about your earnings history from the IRS and keeps it in your earnings record, which you can view in your my Social Security account. This information is normally accurate, although errors can happen if you fail to notify your employer of a legal name change or someone transposes some digits in your Social Security number on your employment paperwork, for example.
Mistakes can hurt your benefits, particularly if you’re reported as having no income for a year you worked. So it’s important to check your record for accuracy before you sign up. Compare your earnings record amount for each year against your own records of your income from that year to make sure everything checks out.
One note for high earners: You might see your income frequently — and correctly — underreported. That’s because you don’t pay Social Security payroll taxes on all your income. In 2024, you only paid these taxes on the first $168,600 you earned. In prior years, this limit was lower. If you earned more than the limit in place for that year, you will see the dollar amount you paid Social Security taxes on instead of your actual income.
If you notice an error, it’s important to correct it before you apply for Social Security. You can do this by filling out a Request for Correction of Earnings Record form and submitting it to the Social Security Administration along with any documentation you have proving your actual income for that year.
You can apply for Social Security up to four months in advance of when you want to start claiming. It’s often a good idea to sign up in advance to ensure you get your checks promptly. This way, if there are any issues with your documentation, you’ll have plenty of time to resolve them.
Those who plan to claim at 62 should also be aware that they may not be able to apply in their birth month. Due to a strange quirk in the Social Security rules, you can only apply for benefits in the month you turn 62 if you were born on the 1st or 2nd of that month. Otherwise, you must wait until the month after your birthday in order to claim.
You must also remember that Social Security pays checks in the month after the month they’re due. So if you apply in February, you won’t get your first check until March. Make sure you have other ways to cover your expenses until your first Social Security check arrives.
If you have any questions about your specific situation, it’s best to contact the Social Security Administration directly with questions. You can do this by phone or email or you can schedule an appointment at your local Social Security office.
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