A Guide to Social Security for Seniors

What Is Social Security?

Social Security is a popular government program that provides financial benefits to eligible individuals. It’s funded by taxes paid by workers and their employers, and it acts as a safety net. Regulated by the Social Security Administration (SSA), Social Security provides benefits based on your pre-retirement earnings. During your years of employment, taxes are deducted from your paycheck specifically for this program.

Both employees and employers pay 6.2 percent of wages up to the taxable maximum of $176,100. Self-employed individuals pay 12.4 percent. These payroll taxes go into the federal Social Security trust fund. When it's time for you to claim Social Security, that money comes back to you in the form of a monthly benefit.2

Social Security was a landmark program passed in 1935 and designed so that older Americans who retire could receive ongoing monthly payments and rely on a regular income. It’s an insurance program funded by contributions from both workers and employers.

When Should I Take Social Security?

If you heard you should wait until your full retirement age (FRA), that’s because you’ll get 100 percent of the benefit if you do so. But don’t feel guilty if you need to access the money earlier. The best time to collect these benefits is a personal decision, based on your unique circumstances.

Not everyone can delay accessing their benefit claim. Many older adults live on a fixed income and rely heavily on Social Security income to make ends meet. Neal Stern, CPA, and member of the American Institute of Certified Public Accountants' (AICPA) National CPA Financial Literacy Commission adds, “If you’re in poor health and have a reduced life expectancy, it might make sense to start enjoying Social Security benefits earlier. Just be sure to consider survivorship benefits for your spouse, which may be affected by your reduced benefit.”

>> Related Reading: Retirement Has Changed Dramatically Over the Years

For baby boomers, especially those in the sandwich generation who are still supporting children or young adult kids and at the same time taking care of their senior parents, taking Social Security at an earlier age might be a necessity.

For instance, I myself was laid off, incurred major hospital expenses after a life-threatening illness, and then was a caregiver, so I had to take my Social Security early.

What Is the Full Retirement Age for Social Security?

As you consider your options and move toward retirement, know that you can take Social Security early. But be sure you understand how much less this will be when compared to taking it at full retirement age (FRA). I must admit I didn’t look deeply into the difference and now I’m smarting from the lower payments, which will remain.

The amount you receive is firstly based on your earnings. The Social Security Administration calculates your benefit based on your average indexed monthly earnings (AIME) during your 35 highest-earning years. It also depends on the year you were born and the age you will be when you initiate your claim. Your benefit will be much less if you take it before you reach the designated maximum retirement age.

Here’s how to determine your eligibility. People born between 1943 and 1955 reach full retirement age (FRA) at 66 years. Those born between 1955 and 1959 earn 100 percent Social Security benefits and thus reach FRA at 66 years plus a specific number of months.

How Does the Social Security Administration Calculate Benefits?

The total Social Security benefit payment varies by individual, as it is based on your personal situation. To summarize, four key factors affect how your monthly Social Security benefit is calculated: Your birth year, claiming age, earnings history, and work history.

Keep in mind that your earnings history and overall Social Security benefit may be impacted if you were away from the workforce for one or more years. For example, if you were out of the workforce and busy raising a family or caring for a parent or spouse, your total earnings record will likely be reduced.

What Is the Average Income for Seniors on Social Security?

I discovered in my research and by speaking with others, most older adults today receive about $1,975 a month from Social Security which is less than $24,000 a year.3

Without a pension, savings, and investments to augment the payments, it’s hard to survive on Social Security payments alone. If you want hard data about Social Security beneficiaries who are 65 years old and older from the SSA, 39 percent of men and 44 percent of women receive 50 percent or more of their income from Social Security, according to research released in 2024. But this research used data from 2015 which is ten years ago.4

Social Security often plays an outsize role when it comes to income for older adults. The monthly benefits represent the largest source of income for many seniors.

So, can’t we all find a way to maximize our Social Security income? In other words, how can retirees receive larger monthly payments? The requirements are demanding. To receive the maximum Social Security retirement benefit, you’ll need to have worked at least 35 years while earning (or surpassing) the SSA’s maximum taxable earnings each year. The maximum earnings for 2025 is $176,100.

The amount you’ll receive in maximum benefits depends on when you retire and begin claiming Social Security. The longer you wait to retire, the greater the maximum benefit amount becomes. If you reach FRA (67 for those born in 1960 or later) and have met the earnings requirements, the maximum benefit in 2025 would be $4,043 per month. If you continue to work and delay social security until age 70, the maximum benefit increases to $5,108 per month.

Only about 6 percent of covered workers earn more than the taxable maximum in any given year.5 You’d also have to achieve it in 35 separate years. Also, only a small percentage of seniors can wait to retire until age 70.

How to Sign Up for Social Security

Ready to claim your Social Security benefits? Your first step is to gather all the necessary information before filing.

Information Needed to Apply for Social Security

The SSA needs specific details and documents to review and process your benefits application. According to the SSA, this information includes:

• Your Social Security number
• Dates of current and previous marriages, along with marriage location(s)
• Employer names and dates of employment for the past two years
• Self-employed business specifics and income
• Bank account information (if you choose direct deposit)
• U.S. military service dates and branches
• List of eligible family members who may receive your SSA benefits; for example, your spouse or child
• Your original birth certificate or other proof of age
• Proof of U.S. citizenship if you were not born in the United States
• Your W-2 tax form(s) and/or self-employment tax return from the previous year
• Your U.S. military service papers (if you served before 1968)

Filing Your Social Security Claim

Once the required data and documents have been collected, create a free my Social Security account with the Social Security Administration (SSA). We recommend creating this account as soon as possible. Not only will this give you an estimate of your future earnings, but it also prevents identity thieves from getting hold of your account before you do.

You can also apply for your benefits by phone at the SSA’s toll-free number: 800-772-1213. If you have hearing loss, call their toll-free TTY number: 800-325-0778.

How Long Will It Take to Apply for Social Security Benefits?

Applying online by creating a Social Security account is the fastest option. According to the SSA, the application will take between 10 to 30 minutes to complete, depending on your situation.

No need to stress about completing the application all in one sitting! If you need to gather additional information or simply take a break, your SSA application can be saved and retrieved when you’re ready.

How Far in Advance Should I Apply for Social Security Benefits?

The earliest you can apply for Social Security retirement benefits is up to four months before you want your retirement benefits to start.6 This means when you are 61 years and eight months of age. The earliest age you can start receiving Social Security benefits is age 62, which is a hard and fast rule.

Most don’t realize this. Technically, the earliest you can begin receiving Social Security retirement benefits is the month you turn 62, but you must be 62 for the entire month to be eligible for that month's payment. The exact month your benefits start depends on your specific birthdate.

For example, if your birthday is on the 1st of the month, the SSA considers you’ve reached age 62 in the previous month, making your birthday month your first month of eligibility. If your birthday is on the 2nd of the month or any later day in the month, your first month of eligibility will be the month following your 62nd birthday.

Whether you claim as soon as you’re eligible or opt to delay your benefits, the SSA advises seniors to apply for Social Security four months before you want your benefits to start.

How Will My Social Security Benefits Be Paid?

If you’d like to avoid waiting to receive your monthly Social Security check in the mail, the SSA offers two options for easy access to your benefits.

1. Direct deposit: Your Social Security payments will be deposited into your bank account electronically. This can be a checking, savings, or prepaid bank card account.
2. Direct Express: If you don’t have a bank account, your benefits can be electronically deposited onto a prepaid debit card. The SSA’s Direct Express does not charge an enrollment fee, and you don’t need to meet a minimum balance to open and access the account. For more information, visit the Direct Express website.

Various Kinds of Social Security Benefits

There are several different Social Security benefits, and it’s important to understand which ones you and your family may be eligible to receive. We’ll take a closer look at each benefit below.

Social Security Spousal Benefits

“A spouse who didn’t work long enough to earn Social Security benefits on his or her own record may qualify for benefits based on the earnings of the longer-working spouse,” said Stern. The SSA states benefits for spouses can be as much as 50 percent of the worker’s Social Security benefit if taken at FRA.

These benefits can be claimed once the earning spouse files for retirement benefits. Keep in mind that if the spouse who earned the benefits is able to delay collecting until FRA (currently between 66 and 67), this can result in a greater benefit for both spouses. Claiming earlier—starting at age 62—can reduce this benefit to as low as 32.5 percent. Note: spousal benefits do not increase if delayed beyond full retirement age.

Even if both spouses have worked enough to be eligible for Social Security, it’s important to take time to assess the benefit breakdown. Look at each work record as it might be worthwhile for one spouse to begin collecting benefits before the other. A little homework and using estimates of your benefits that you can get from the Social Security Administration or from us can help you determine the best strategy for your unique situation.

Divorced Spouse Social Security Benefits

AARP says about 40 percent of Americans don’t know this: You may qualify for Social Security’s Divorced Spouse Benefits if you were in a long-term marriage and are legally divorced.7 AARP goes on to say that based on SSA data, women make up 95 percent of the nearly 641,000 people receiving spousal or survivor benefits based on the earnings record of a partner they divorced.

But there are eligibility requirements to be aware of:

• You’re at least 62 years of age.
• You’re not currently married.
• You were married to your ex-spouse for at least 10 years.
• You’ve been divorced from that person for at least 2 years.
• You’re not entitled to an equal or higher retirement benefit on your own work record.

Note that sometimes it’s okay if you remarried after age 60 or if you’re disabled and remarried after age 50. The maximum amount that can be claimed by a divorced spouse is 50 percent of their ex-spouse’s FRA amount. This applies to both living and deceased ex-spouses. If the one applying for benefits is still working and has not yet reached FRA, their benefit may be reduced based on their earnings.

For more information on how the Social Security spousal and divorced spousal benefits work, watch Part 2 of our Maximizing Your Social Security Benefits three-part series.

Social Security Survivors Benefits

Widows, widowers, and dependents of eligible workers are eligible for Social Security Survivors Benefits based on the deceased’s earnings.

According to the SSA, eligible family members include:

• A widow or widower age 60 years or older (age 50 or older if the widow or widower is disabled)
• A surviving divorced spouse (the marriage must have been for at least 10 years)
• A widow or widower at any age who is caring for the deceased’s child who is under age 16 or disabled and receiving child’s benefits

In addition to spouses and ex-spouses, unmarried children are eligible to claim survivors Social Security benefits if they are:

• Under the age of 18 (or up to age 19 if they are a full-time student in an elementary or secondary school)
• Age 18 or older with a disability that began before age 22

The SSA’s Survivors Benefits are complex. Under certain situations, other family members may be eligible. Learn more about Survivors Benefits here.

Social Security Disability Insurance Benefits

The Social Security Disability Insurance (SSDI) program will give assistance to individuals with disabilities who cannot work.

To qualify for disability benefits, you need to meet the following criteria:

• You have a medical condition that meets the Social Security’s definition of disability.
• You have contributed enough Social Security “work credits” through your work history. Work credits are obtained based on your annual earnings. The number of credits needed is based upon your age.

Should you qualify for SSDI benefits, some family members may be eligible to receive benefits based on your work history. These individuals may include:

• Your spouse
• A divorced spouse
• Your child
• Your adult child disabled before age 22

What Are the Rules for Working While Collecting Social Security?

It is possible to work and collect Social Security retirement benefits. However, if you claim Social Security prior to your FRA, there is a limit on annual earnings. Your benefits may be adjusted from full to partial based on your reported wages.

Here is something I myself didn’t realize and had to learn the hard way. Earnings will be reduced should you exceed these limits:

• If you are under FRA for the entire year, SSA deducts $1 from your benefit payments for every $2 you earn above the annual limit. For 2025, that limit is $23,400.
• If you reach your full retirement age in 2025, SSA deducts $1 in benefits for every $3 you earn above a different limit. In 2025, this limit on your earnings is $62,160.

Keep in mind, SSA only counts your earnings up to the month before you reach your full retirement age, not your earnings for the entire year. The month you reach full retirement age, there is no longer any limit on your earnings or a reduction in your benefits.9

What is Supplemental Security Income (SSI)?

About 33.5 percent of American seniors aged 65 or older receive Supplemental Security Income (SSI) payments.10 The SSI program is administered by the Social Security Administration and was formed to assist older adults, those who are blind, and those who have a disability and have little or no income.

The monthly maximum Federal SSI payment amounts for 2025 are $967 for an eligible individual, $1,450 for an eligible individual with an eligible spouse, and $484 for an essential person.11

Who Is Eligible for Supplemental Security Income?

SSI eligibility requirements are based on medical and financial need. To qualify for SSI benefits, individuals must meet the following criteria:

• Be at least 65 years or older, or be blind or have a disability
• Have limited income and resources
• Be a citizen or a national of the U.S., or an alien who meets certain applicable requirements
• Reside in one of the 50 States, District of Columbia, or the Northern Mariana Islands

There are a few other requirements as well. An individual’s monthly income from work, bank balance, and marital status may also affect eligibility for SSI.

Can You Collect Social Security and Supplemental Security Income?

It may be possible to collect SSI and Social Security benefits. Keep in mind, one of the qualifying factors for SSI is income. Any Social Security benefits you receive counts toward your income total.

Your best plan of action is to speak with a Social Security representative. Contact Social Security at 800-772-1213. If you have hearing loss, call TTY 800-325-0778.