The year 2025 could be when you finally claim Social Security benefits. This might also coincide with your retirement.
It’s an exciting milestone, and those monthly checks can make a big difference in covering your expenses.
However, it’s important to take the right steps before applying to ensure you maximize your benefits.
Here are three essential things to do now to prepare.
1. Understand How Your Claiming Age Impacts Benefits
The age at which you claim Social Security significantly affects how much money you’ll receive each month. Your benefits are based on two factors: your income during your working years and your age when you start collecting.
Full benefits, also known as the primary insurance amount (PIA), are available at your full retirement age (FRA). Your FRA depends on your birth year, as shown in the table below:
| Birth Year | Full Retirement Age (FRA) |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
You can claim benefits as early as age 62, but this reduces your monthly payment. If you claim within the first 36 months before your FRA, your benefit is reduced by 5/9 of 1% per month (about 6.67% per year). If you claim more than three years early, the reduction is 5/12 of 1% per month (about 5% per year).
On the other hand, delaying benefits past your FRA increases your checks. For every month you wait, your benefit grows by 2/3 of 1% (about 8% per year) until age 70.
While waiting longer can mean higher monthly payments, it’s not always the best choice. If you have health concerns or financial obligations that require immediate income, claiming earlier may be necessary.
If you’re unsure about the best age to start claiming, create a “my Social Security” account online. Use the calculator to estimate your benefit amounts for different ages.
Multiply the monthly amount by the total months you expect to collect to see which age gives you the highest lifetime benefit.
2. Check Your Earnings Record for Accuracy
The Social Security Administration calculates your benefits based on your earnings history. Any errors in your earnings record could lower the amount you receive.
These mistakes can happen if there’s a name mismatch, incorrect Social Security number, or misreported earnings.
Log into your “My Social Security” account and review your earnings record. Compare the listed amounts with your tax returns or pay stubs from past years.
Keep in mind that Social Security taxes only apply to income below a certain limit, which was $168,600 in 2024. If you earned more than this cap in any year, only the taxable portion will show in your record.
If you spot an error, it’s important to correct it before applying. Fill out the Request for Correction of Earnings Record form and submit it to the Social Security Administration.
Include documentation, such as W-2 forms or tax returns, to prove your actual earnings. This step ensures your benefits are calculated correctly and fairly.
3. Know When and How to Apply?
Timing is everything when it comes to applying for Social Security. You can submit your application up to four months before you want your benefits to begin. Applying early ensures you receive your first payment on time.
If you plan to claim benefits at 62, there’s a unique rule to remember. If you were born on the 1st or 2nd of a month, you can apply during your birth month. Otherwise, you must wait until the month after your birthday to start claiming benefits.
Another factor to consider is the payment schedule. Social Security pays benefits in the month following the one they’re due.
For example, if you start claiming in February, you’ll receive your first check in March. Be sure to budget for this delay to avoid financial stress.
For help with the application process, contact the Social Security Administration. You can reach them by phone, email, or schedule an appointment at a local office. They can answer your questions and guide you through any issues.
Why Preparing Early Matters?
Taking these steps now can make a big difference in your retirement finances. Understanding your claiming age, reviewing your earnings record, and applying at the right time can help you avoid costly mistakes.
Whether you’re retiring or just starting Social Security, planning ensures you maximize your benefits. By making informed decisions, you can enjoy a more secure and comfortable retirement.
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Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
