Social Security payments are a critical source of financial security for millions of Americans in retirement. Despite its popularity, not all citizens are automatically eligible for these payments.
Eligibility and benefit amounts are subject to specific requirements, such as having worked in jobs covered by the Social Security Administration (SSA) and accumulating a certain number of work credits.
From the earliest age to apply for benefits, which is 62, to the possibility of significantly increasing payments by delaying application until 70, decisions about when and how to claim Social Security have long-term consequences for financial stability.
Furthermore, retirees must consider factors such as the annual Cost of Living Adjustment (COLA) and the impact of inflation to ensure that their purchasing power remains stable over time.
What age should you apply for Social Security benefits?
While there is no specific recommendation, the fact is that withdrawing your funds earlier will result in less money. For example, workers who apply for Social Security at age 62 should be aware that their monthly payment will be reduced, as they must wait until full retirement age to receive 100%.
It is best to extend the application until the age of 70, at which point those who choose to withdraw their social security will receive an additional 24% per month.
10 things retirees need to know about Social Security payments in 2025
Not everyone qualifies for retirement benefits.
Paying taxes to the SSA is a requirement.
Having at least 10 years of work or 40 work credits is mandatory at age 62.
Early application is allowed at age 62.
Claiming benefits at age 62 reduces your monthly payment.
Full Retirement Age allows you to receive 100% of your benefits.
Applying for the benefit at age 70 gives an extra 24%.
COLAs are sent out once a year.
COLAs arrive in January for retirees.
Inflation reduces purchasing power.
