Updated from the original publication on September 12, 2019.
The Social Security Administration (SSA) pays out billions of dollars every month to retirees, disabled workers, and their family members. But what are social security benefits and how do you know if you qualify for them?
By knowing and understanding how social security benefits are calculated and paid out, you may be eligible for more than you think.
We've done the hard work and found top five important things that you need to know about social security benefits — from claiming your benefits, to working with your spouse to delay claiming of benefits.
Social security benefits can be very complicated; be sure to involve a retirement planner or a trusted advisor to help you make the best decisions that fit your needs.
Whether you're currently receiving Social Security benefits now, or will receive benefits in the near future, it's important to understand as much as possible so that you know exactly how much you should save and when to file.
1. When You Claim Social Security Benefits Can Significantly Affect Your Retirement Income
One of the most important decisions you'll make is when to begin collecting Social Security. While you can start receiving benefits as early as age 62, doing so permanently reduces your monthly payment.
If you delay claiming benefits beyond your Full Retirement Age (FRA), your monthly benefit increases by approximately 8% per year, up to age 70. For many retirees, this can result in a significantly higher lifetime benefit.
It's important to. note that some older claiming strategies - often referred to as "file and suspend" or "start-stop-start" strategies - are no longer available due to the changes in federal law. Today, increasing your benefit is primarily achieved by delaying when you first claim.
Key takeaway: Understanding when to claim Social Security can have a lasting impact on your retirement income.
2. Social Security Survivor Benefits Can Provide Long-Term Financial Support
Social Security survivor benefits remain an important source of income for widows and widowers. In many cases, a surviving spouse may be eligible to receive benefits based on their late spouse's work record.
Survivors may have flexibility in choosing which benefit to take first - their own retirement benefit or a survivor benefit - and then switching later if the other benefit grows larger. Eligibility rules and timing depend on age, work history and individual circumstances.
Key takeaway: Survivor benefits are still available and can play a crucial role in long-term financial stability.
3. Full Retirement Age Determines Your Social Security Benefit Amount, Isn't "One Size Fits All" 
In the past, Full Retirement Age was commonly described as 66. Today, FRA depends on your birth year:
- For individuals born in 1960 or later, Full Retirement Age is 67
- Those born earlier may have an FRA between 66 and 67
Your FRA affects:
- When you can receive your full, unreduced Social Security benefit
- How much you can earn from work without temporarily reducing benefits if you claim early
Understanding your personal Full Retirement Age is essential for making informed retirement decisions.
Key takeaway: Knowing your Full Retirement Age is essential for accurate Social Security benefit planning.
4. Social Security Benefits Are Based on Your Earnings History
Social Security calculates your retirement benefit using your 35 highest years of earnings, adjusted for inflation. If you worked fewer than 35 years, zeros are factored into the calculation, which can reduce your benefit.
To qualify for retirement benefits, you need 40 work credits, which typically equals about 10 years of work. In 2025, one work credit is earned for every $1,810 in wages, up to four credits per year.
Benefit amounts are updated regularly to reflect wage growth and inflation. For example,
- The maximum monthly benefit for someone retiring at Full Retirement Age in 2025 is over $4,000, significantly higher than it was just a few years ago.
You can estimate your own benefit by using Social Security's online Retirement Estimator.
Key takeaway: Your lifetime earnings and length of work history directly affect your Social Security benefit amount.
5. Coordinating Social Security Benefits Is Especially Important for Married Couples
For married couples, Social Security planning works best when decisions are made together. Coordinating when each spouse claims benefits can help maximize household income, protect the surviving spouse and reduce financial stress later in retirement.
Couples should also consider:
- Taxation of benefits: Depending on your combined income, up to 85% of Social Security benefits may be taxable
- Medicare premiums: Higher income levels can increase Medicare Part B and Part D premiums, even in Social Security benefits themselves are unaffected
Taking a coordinate approach can make a meaningful difference over time.
Key takeaway: Coordinated Social Security retirement planning can strengthen long-term financial security for couples.
Bonus: Additional Updates to Be Aware of
- Cost of Living Adjustments (COLA): Social Security benefits are adjusted annually to help keep pace with inflation. A COLA increase took effect in 2025, with another expected in 2026.
- Working While Receiving Benefits: If you claim Social Security before reaching Full Retirement Age, your benefits may be temporarily reduced if your earnings exceed annual limits. Once you reach FRA, there is no earnings limit.
- Long-Term Outlook: While Social Security continues to pay full benefits today, policymakers continue to discuss long-term funding solutions for the future. This does not affect current beneficiaries but highlights the importance of broader retirement planning.
Final Thoughts on Social Security Benefits
Social Security remains a dependable foundation of retirement income, but the rules surrounding it evolve over time. Staying informed - and understanding how today's regulations apply to your personal situation - can help you. make confident decisions about your future.
At Presbyterian Senior Living's life plan communities, we understand that retirement planning goes beyond finances. It's about peace of mind, lifestyle and knowing you have support every step of the way.
If you have questions about Social Security or retirement planning, consider speaking with a trusted financial advisor or visiting ss.gov for personalized information.
This article is intended for general informational purposes only and should not be considered financial, legal, or tax advice. For guidance specific to your situation, please consult a qualified financial advisor or the Social Security Administration.
