If you're nearing retirement age, you've probably heard plenty of talk about Social Security—and maybe some conflicting advice, too. These government benefits are a significant source of income for people age 65 and older, with about 69 million retirees receiving payments each month.¹

“Social Security isn’t just a nice bonus after leaving the workforce; for many older Americans, it’s the foundation of financial security in retirement,” said Jessica Johnston, NCOA's Senior Director for the Center for Economic Well-Being. “Understanding the system is important, because the choices you make when applying can have lifelong consequences.”

While the idea of applying for Social Security can feel a little intimidating, we’re here to help. It’s easier to navigate the process when you know what to expect and the common pitfalls to avoid. Let’s get started!

Understanding the basics

Before you consider tapping into your benefits, you’ll want to know exactly what you’re signing up for and how the Social Security program works.

The purpose of Social Security

One important thing to understand is that Social Security retirement benefits are meant to supplement your retirement savings—not replace all of the income you made while working. In fact, these benefits are designed to replace only about 40% of your pre-retirement earnings.²

Monthly payments are calculated based on your lifetime earnings from jobs where you paid Social Security taxes. Your spouse, ex-spouse, and dependents may also qualify for benefits based on your work history.

Each year, benefits may increase to keep pace with inflation. This is called the cost-of-living adjustment (COLA). In 2025, the COLA was 2.5%.

Who is eligible for Social Security?

Most people qualify for Social Security retirement benefits if they have at least 40 work credits from a job covered by Social Security (equal to about 10 years of work). The amount needed to earn one work credit in 2025 is $1,810, and you can earn up to four credits each year. Extra credits (over 40) do not increase your benefit amount.

You can begin collecting Social Security as early as age 62, but your benefit will be permanently reduced compared to waiting until your Full Retirement Age (FRA). FRA is the age when you qualify for your full monthly benefit amount. For most people today, this is between 66 and 67, depending on your birth year (check your FRA here).

On the other hand, if you delay your claim until age 70, your monthly payment increases up to a certain point.

You might be eligible for benefits on your own record, your spouse’s record, or as a survivor. Understanding which option gives you the highest benefit can help you make the best choice. No matter when you claim benefits, Social Security payments continue for as long as you live.

Special eligibility rules apply if:

• You’re divorced (and were married for at least 10 years).
• You’re widowed (you may qualify for survivor benefits as early as age 60, or 50 if you have a disability).
• You worked in a job not covered by Social Security (such as certain government positions).

✅ Tip: You can check your eligibility for retirement benefits at SSA.gov.

How will my Social Security benefit be calculated?

Your benefit amount is based on your 35 highest-earning years in jobs that paid into Social Security. If you worked fewer than 35 years, the SSA uses zeros for missing years, which lowers your benefit amount.

This is why it’s vital to check your earnings record before you apply. You can do this through your my Social Security account. The my Social Security portal gives you instant access to important information and tools related to your benefits. If you see an error in your work history, contact the SSA right away to get it corrected before you file.

✅ Tip: You can estimate your retirement benefit at SSA.gov.

Remember—as mentioned above, when you file your Social Security application also affects your monthly benefit amount.

Timing: When should you claim your Social Security benefits?

Choosing when to draw Social Security retirement benefits is one of the biggest decisions you’ll make as you approach retirement. Apply too early, and you might leave money on the table. Wait too long, and you could miss out on years of payments you worked hard to earn.

Here’s how timing impacts your benefit amount:

• Applying early (62 up to FRA): Your monthly benefit is reduced, sometimes by as much as 25-30%. This reduction is permanent.
• Applying at FRA: You receive your full benefit amount.
• Delaying past FRA (up to age 70): Your benefit grows by about 8% per year you wait.

For example, if your FRA is 67 and your benefit at that age would be $1,800, claiming at 62 might lower it to about $1,260. On the other hand, waiting until age 70 could raise it to about $2,232.

If you keep working before you reach FRA, the SSA subtracts $1 from your benefit payments for every $2 you earn in excess of the annual limit ($23,400 in 2025). In the year you reach FRA, $1 is subtracted from your benefits for every $3 you earn above a different limit ($62,160 in 2025).

Am I entitled to spousal or survivor benefits?

If you’re married, divorced, or widowed, you may be entitled to benefits based on someone else’s work record:

• Spousal benefits: If your spouse is receiving retirement benefits, you may receive up to 50% of their FRA benefit amount.
• Survivor benefits: If your spouse or ex-spouse has passed away, you could receive up to 100% of what they were entitled to when you reach FRA for survivor benefits, which is between ages 66-67. You may also be able to collect a one-time death benefit of $255.
• Divorced spouse benefits: If you were married for at least 10 years, you may qualify for benefits. You must be currently unmarried and meet other requirements.

Sometimes it makes sense to start one type of benefit (like a survivor benefit) and switch to your own later, or vice versa. The SSA can help you explore your options.

Do they take taxes out of my Social Security money?

It depends. When you apply, you’ll be asked if you want federal income tax withheld from your monthly payment. Not everyone owes taxes on benefits, but if your combined income (Social Security plus other earnings) is above certain limits, up to 85% of your benefits may be taxable.

✅ Tip: If you’re 65 or older when you apply, you may be automatically enrolled in Medicare Part A (Hospital Insurance) and Part B (Medical Insurance). Your Medicare premiums can be deducted directly from your Social Security payments.

Applying for Social Security

If you’ve determined you’re eligible for Social Security and the timing is right, the next step is getting ready to apply for benefits.

You can submit your Social Security retirement application as early as four months before you want benefits to begin. This helps you ensure all your paperwork and eligibility details are in order. It also gives the SSA time to process your application so your payments can start by your chosen date.

What documents will I need to apply for Social Security?

The SSA will ask for certain documents to process your application. Having the following handy when you apply can help prevent delays:

• Proof of age: Birth certificate, or another official record
• Social Security number: Your Social Security card or another record showing your number
• Proof of U.S. citizenship or lawful alien status: If you were not born in the United States
• Marriage and/or divorce documents: If you’re applying for spousal or divorced spouse benefits
• Work and earnings history: Most recent W-2 or tax returns if you’re self-employed

If you don’t have some of these documents available, don’t panic! You can still apply and provide the missing paperwork later. The SSA may even be able to help you get them.

Now that you’ve gathered all or most of the documents you need, you can go ahead and start your application.

How do I apply for Social Security?

When you’re ready, you have three main ways to apply:

1. Online at SSA.gov: This is by far the fastest and most convenient method. According to the SSA, 63% of customers are able to successfully file for their retirement benefits online.³
   
   To start your application, create or sign in to your personal my Social Security account. Completing the application takes only about 10 to 30 minutes. Plus, you can save your progress at any time if you need to take a break and return later.
   
   If your request can’t be processed online for any reason, you’ll get instructions on how to call or schedule an appointment with the SSA.
2. By phone: Call the SSA at 1-800-772-1213 (TTY: 1-800-325-0778) Monday through Friday from 8:00 a.m. to 7:00 p.m. local time. You’ll need schedule an appointment with a representative to review your application. Keep in mind that currently, getting an appointment can take 30 days or more.²
3. In person: Call or visit your local Social Security office—it’s a good idea to call ahead to set up an appointment. Find your local office here.

✅ Tip: Be sure to review your application carefully before submitting. Even small mistakes, like entering the wrong date for your start month, can cause delays or result in a lower monthly payment than expected.

What happens after I apply for Social Security?

After submitting your application, the SSA will review it and may contact you if they need more information. Processing times vary, but it can take up to six weeks for Social Security benefits to begin.

Once approved, your first payment will typically arrive one month after your chosen benefits start date. The day you receive your benefits each month depends on your birthday and the type of benefits you get. You must receive your payments electronically—either by direct deposit to your bank account or to a Direct Express® Debit MasterCard® account. You’ll be asked to provide that information when applying.

✅ Tip: If you applied online, you can check your application status by logging back into your my Social Security account.

Where can I get help applying for Social Security?

If you need assistance completing your benefits application, the following resources may be helpful:

• SSA.gov: Find online calculators, how-to articles, and Frequently Asked Questions (FAQs).
• SSA Customer Service: Call 1-800-772-1213 (TTY: 1-800-325-0778) between 8:00 a.m. – 7:00 p.m. local time, Monday through Friday.
• Your local SSA office: Be sure to call ahead to schedule an appointment with a staff member.
• Your local Area Agency on Aging: Your local agency may be able to help you apply for Social Security benefits—or at least refer you to resources that can assist you.
• A friend or family member: Consider asking someone you know and trust to help you complete and submit your application.  

Common mistakes to avoid

To keep your application moving smoothly and ensure you get the maximum Social Security benefit you’re entitled to, try to avoid these pitfalls:

• Applying without reviewing your earnings history to make sure it’s accurate
• Forgetting to consider spousal or survivor benefits you may be entitled to (and leaving money on the table)
• Choosing a benefits start date without understanding how it affects your monthly amount
• Not accounting for taxes on your benefits
• Missing required documents, which can slow down processing

Start your next chapter with confidence

Social Security is only one piece of your retirement financial puzzle—but it’s a critical one. By learning the basics and being thoughtful about when you apply, you can get the most out of your benefits and start your retirement on strong financial footing. More importantly, you’ll be able to focus on what matters most: enjoying the years ahead of you.

Sources

1. Social Security Administration. 2025 Fact Sheet. Found on the internet at https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf

2. Social Security Administration. What young workers should know about Social Security and saving. Found on the internet at https://www.ssa.gov/newsletter/Statement%20Insert%2025+.pdf

3. Social Security Administration. Social Security Performance. Updated July 2, 2025. Found on the internet at https://www.ssa.gov/ssa-performance