Reaching the age of 62 is a significant life event for many, often marking the completion of a long career and the beginning of eligibility for Social Security benefits, which are crucial for many retirees’ financial support.
Deciding to claim Social Security is an important choice and one that is not easily reversible. If you plan to start receiving benefits in 2025, here are several key points you should be aware of.
1. Eligibility Starts After a Full Month of Being 62
While you can apply for Social Security up to four months before you want to start receiving benefits, you are not eligible to receive them in the month you turn 62. You must have reached the age of 62 for the entire month before you can begin receiving benefits.
For those born on the 1st or 2nd of the month, your benefits can start the month of your birthday. However, if your birthday is on the 3rd or later, you’ll have to wait until the following month to claim your benefits.
Additionally, Social Security pays out benefits the month after they are due. For example, if your 62nd birthday is on March 21, 2025, your eligibility starts in April 2025, and your first payment would be issued in May 2025.
The actual day you receive your payment each month also depends on your birth date:
- Born on the 1st to the 10th: Second Wednesday of the month
- Born on the 11th to the 20th: Third Wednesday of the month
- Born on the 21st to the 31st: Fourth Wednesday of the month
In the example of a birthday on March 21, 2025, your first Social Security check would be received on May 28, 2025. This gap means you will need another income source until your benefits start.
2. Early Claims Can Permanently Reduce Benefits
Claiming Social Security before reaching your full retirement age (FRA) can permanently decrease the amount of your monthly benefits. Depending on your birth year, your FRA will be between 66 and 67 years old.
For each month you claim benefits before reaching FRA, your benefits reduce by five-ninths of 1% for the first 36 months. If you claim benefits right at 62, you could see a reduction of 25% if your FRA is 66, or 30% if it is 67. This could decrease an average monthly benefit of $1,967 in 2025 to as low as $1,377.
Claiming early may still be a beneficial option if you have a shorter life expectancy or lack sufficient income. However, delaying your claim can result in a higher total benefit over your lifetime.
You can also increase your benefits by continuing to delay past your FRA. Benefits grow by two-thirds of 1% each month until age 70, when you reach the maximum benefit amount.
3. Early Claiming Affects Survivors Benefits
Survivors benefits, which support your spouse and dependents after your death, are also impacted by when you choose to claim Social Security. If you haven’t started your benefits, these are calculated based on your primary insurance amount (PIA), which is the benefit you would receive at your FRA. If you are already receiving benefits, however, survivors benefits are based on the actual amount you received.
Claiming early not only reduces your monthly benefit but also lowers the potential survivors benefits your family could receive. If you can afford to wait, it may be beneficial to delay claiming Social Security.
The rules for spousal benefits differ; a spouse can receive up to half of the worker’s PIA, but only if the worker has already claimed Social Security. Claiming spousal benefits before reaching their own FRA also results in reduced benefits for the spouse.
If you have questions about your Social Security options, it’s wise to conduct thorough research or contact the Social Security Administration before applying. You can withdraw your claim within the first 12 months if you change your mind, but you must repay all the benefits you received, which is often a challenging task.
The Motley Fool has a disclosure policy.
The $22,924 Social Security Bonus Many Retirees Miss
Offer from the Motley Fool: Many Americans fall short in their retirement savings, but employing some little-known Social Security tactics could significantly enhance your retirement income. For instance, one simple strategy could provide an additional $22,924 annually. Learning how to maximize your Social Security benefits could enable you to retire securely and with greater peace of mind. Click here to discover more about these strategies.
Explore “Social Security secrets” »
Similar Posts:
- 2025 Social Security Updates: Key Changes for Workers and Retirees
- Maximize Your Spousal Social Security Benefits: Top 4 Essential Tips
- Boost Your Social Security Benefits: Earn More at 67 Than at 62!
- Common Social Security Blunder Could Cost Retirees Thousands!
- Major Social Security Updates Coming in 2025: What You Need to Know!
Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.
