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Social Security

Our government pension — when to claim, how timing affects lifetime income, and the full range of benefit types available to you and your family.

What Is Social Security?

Social Security is a federal program providing financial assistance to retirees, disabled individuals, and survivors of deceased workers. It is funded through payroll taxes collected from employees and employers. For many retirees, Social Security benefits form a crucial part of their retirement income.

To qualify for retirement benefits, you generally need at least 40 work credits — equivalent to approximately 10 years of work — earned by paying Social Security taxes. The amount of benefits you receive is based on your lifetime earnings and the age at which you start claiming.

Important: Social Security was never designed to be a sole retirement income source. It is intended to supplement other retirement savings — not replace them. Planning for additional income streams is essential.

Full Retirement Age (FRA) by Birth Year

Your Full Retirement Age (FRA) is the age at which you receive 100% of your calculated benefit. It varies by birth year:

Birth Year Full Retirement Age (FRA)
1943–195466
195566 and 2 months
195666 and 4 months
195766 and 6 months
195866 and 8 months
195966 and 10 months
1960 and later67

When to Claim — The Most Important Decision

Your Social Security benefit increases the longer you wait to start receiving it. The three key ages are:

62 Earliest (ERA) $1,315/mo Average earner $2,200/mo Above-average earner
~30% reduction from FRA. Permanently reduced for life.
67 Full (FRA) $1,932/mo Average earner $3,232/mo Above-average earner
100% of calculated benefit. No reduction, no bonus.
70 Maximum (MBA) $2,433/mo Average earner $4,072/mo Above-average earner
~25% more than FRA. No further increase after 70.
8%

For every year you delay claiming past your FRA (up to age 70), your monthly benefit permanently increases by approximately 8%. This is a guaranteed, risk-free return that no investment can match on a guaranteed basis.

Lifetime Benefit Totals by Claiming Age

The right time to claim depends significantly on how long you expect to live and whether you need the income now. The tables below show total estimated lifetime benefits at different claiming ages and death ages:

Average Earner ($1,315 / $1,932 / $2,433 per month)

Start Age Die at 70 Die at 75 Die at 80 Die at 90
Age 62 $126,240 $205,140 $284,040 $441,840
Age 67 $69,557 $185,488 $301,417 $533,277
Age 70 $0 $146,038 $292,076 $584,153

Above-Average Earner ($2,200 / $3,232 / $4,072 per month)

Start Age Die at 70 Die at 75 Die at 80 Die at 90
Age 62 $211,200 $343,200 $475,200 $739,200
Age 67 $116,370 $310,322 $504,273 $892,176
Age 70 $0 $244,322 $488,645 $977,291
Reading the tables: Green cells show where each starting age produces the highest lifetime total. If you live to 80, starting at 62 or 67 may produce more total dollars than waiting. If you live to 90, waiting until 70 almost always wins — significantly. The break-even point between starting at 67 vs. 70 (average earner) is approximately age 82–83.

Don’t forget to account for inflation — Social Security benefits receive annual cost-of-living adjustments (COLA), which also compound at the higher base when you delay. You can get very close estimates of your own benefit by visiting the Social Security Administration website at ssa.gov.

Four Types of Social Security Benefits

🏢 Retirement Benefits

The most common type. Available to workers who have earned 40 credits and reached at least age 62. Amount based on lifetime earnings record.

  • ERA: 62 (reduced benefit)
  • FRA: 66–67 (full benefit)
  • Maximum: 70 (no increase after)
  • COLA adjustments applied annually

⚙ Disability Benefits (SSDI)

Provides benefits to individuals unable to work due to a severe disability expected to last at least one year or result in death.

  • Must meet SSA definition of disability
  • Work credits required (fewer for younger applicants)
  • Medical condition must prevent substantial gainful activity
  • Converts to retirement benefits at FRA

🎻 Survivor Benefits

Available to family members of deceased workers who earned sufficient work credits.

  • Widows/widowers from age 60 (50 if disabled)
  • Unmarried children under 18 (19 if in high school)
  • Adult children disabled before age 22
  • Dependent parents age 62 or older

📋 Supplemental Security Income (SSI)

A needs-based program for elderly, blind, or disabled individuals with limited income and resources, regardless of work history.

  • Must be 65+, blind, or disabled (SSA definition)
  • Income and resource limits apply
  • Does not require work credits
  • Separate from Social Security retirement

Spousal & Divorced Spousal Benefits

Social Security extends benefits beyond the worker to spouses and former spouses, providing important planning options for couples and divorced individuals:

Spousal Benefits

  • A spouse can receive up to 50% of the worker’s FRA benefit
  • Eligible as early as age 62, but reduced if claimed before FRA
  • The working spouse must be receiving their own benefits
  • If your own benefit exceeds the spousal benefit, you receive the higher of the two
  • No additional increase for delaying past FRA (unlike retirement benefits)

Divorced Spousal Benefits

  • Marriage must have lasted at least 10 years
  • You must be currently unmarried
  • Ex-spouse must be entitled to Social Security retirement or disability benefits
  • If divorced for at least 2 years, you can claim even if ex-spouse hasn’t filed yet
  • Claiming divorced spousal benefits does not affect the ex-spouse’s own benefit

Spousal timing is its own strategy. The optimal Social Security claiming strategy for a couple is rarely as simple as "both claim at the same age." Coordinating when each spouse claims — especially when there is a significant earnings difference — can meaningfully increase lifetime household benefit totals. Contact us to discuss strategies for your specific situation.

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