Question 1

When should I claim Social Security benefits?

Accepted Answer

The optimal claiming age depends on your health, other income sources, and break-even analysis. Claiming at 62 (earliest) permanently reduces your benefit by up to 30% vs. Full Retirement Age (FRA). Delaying past FRA earns delayed retirement credits of 8% per year up to age 70 -- a 32% bonus over FRA benefit. The break-even age (when total lifetime benefits equalize) between claiming at 62 vs. 70 is typically around age 80-82. If you expect to live past 82 and don't need the income immediately, delaying to 70 maximizes lifetime benefits. If health is poor or you need income now, claiming early may be better.

Question 2

What is Full Retirement Age (FRA) for Social Security?

Accepted Answer

Full Retirement Age (FRA) is the age at which you receive 100% of your calculated Social Security benefit. FRA depends on your birth year: born 1943-1954: FRA = 66; born 1955: FRA = 66 and 2 months; born 1956: FRA = 66 and 4 months; born 1957: FRA = 66 and 6 months; born 1958: FRA = 66 and 8 months; born 1959: FRA = 66 and 10 months; born 1960 or later: FRA = 67. Claiming before FRA reduces your benefit permanently; delaying past FRA increases it by 8% per year up to age 70.

Question 3

How is my Social Security benefit calculated?

Accepted Answer

The SSA calculates your benefit based on your 35 highest-earning years (indexed for inflation). The formula applies progressive replacement rates to your Average Indexed Monthly Earnings (AIME): 90% of the first $1,174 of AIME + 32% of AIME between $1,174 and $7,078 + 15% of AIME above $7,078 (2024 bend points). The result is your Primary Insurance Amount (PIA) -- the benefit at FRA. Years with zero earnings count as zeros, which reduces your average. Working longer and earning more replaces low-earning years and increases your benefit.

Question 4

What is the spousal Social Security benefit?

Accepted Answer

A spouse who did not work or had low earnings can claim up to 50% of their spouse's FRA benefit (not the actual benefit if the worker claimed early or late). The spousal benefit is reduced if claimed before the spouse's own FRA. You cannot claim spousal benefits until your spouse has filed for their own benefits (except under restricted application rules for those born before January 2, 1954). If your own benefit exceeds 50% of your spouse's FRA benefit, you will receive your own benefit instead. Divorced spouses can claim on an ex-spouse's record if the marriage lasted 10+ years.

Question 5

How does working affect Social Security benefits before FRA?

Accepted Answer

If you claim Social Security before FRA and continue working, the earnings test applies: in 2024, $1 of benefits is withheld for every $2 you earn above $22,320/year. In the year you reach FRA, $1 is withheld for every $3 above $59,520. After FRA, there is no earnings limit -- you can earn any amount without affecting benefits. Withheld benefits are not lost; the SSA recalculates your benefit at FRA to credit you for months benefits were withheld, resulting in a higher monthly payment going forward.

Claim Age	Monthly	% of FRA	Lifetime Total
Age 62	$1,750	70.0%	$483,000
Age 63	$1,875	75.0%	$495,000
Age 64	$2,000	80.0%	$504,000
Age 65	$2,167	86.7%	$520,000
Age 66	$2,333	93.3%	$532,000
Age 67FRASelected	$2,500	100.0%	$540,000
Age 68	$2,700	108.0%	$550,800
Age 69	$2,900	116.0%	$556,800
Age 70	$3,100	124.0%	$558,000

Social Security Benefits Calculator

Break-Even vs. Claiming at 62

Lifetime Benefit Comparison (to age 85)

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