How to Claim Social Security: What You Need to Know Before You File

Social Security is one of the most important financial decisions you'll make in retirement. Get it right, and it can provide meaningful, lifetime income. Get the timing wrong, and you may leave real money on the table for the rest of your life.

Here's a straightforward breakdown of how it works, when you can file, and what you should think through before you do.

How Your Benefit Is Calculated

The Social Security Administration calculates your benefit using a formula based on your highest 35 years of earnings, adjusted for inflation.¹ If you have fewer than 35 years of earnings on record, SSA fills in zeros for the missing years, which pulls your benefit down.

That's why it's worth reviewing your earnings record before you file. You can do that by creating a free account at SSA.gov. Check for any missing or underreported income, because errors in your record directly affect your monthly payment.

When Can You Start?

You can start collecting Social Security retirement benefits as early as age 62, but claiming early permanently reduces your benefit.²

Your Full Retirement Age (FRA) is the key number to understand. For anyone born in 1960 or later, FRA is 67.² If your FRA is 67 and you claim at 62, your benefit is reduced by 30% -- permanently.² That reduction doesn't go away when you reach full retirement age.

On the other end, waiting until age 70 increases your benefit to 124% of your FRA amount through delayed retirement credits. There is no advantage to waiting past age 70.²

To put real numbers to it: the maximum monthly benefit for someone retiring at full retirement age in 2026 is $4,152. Delaying to age 70 pushes that maximum to $5,181 per month.³ The average retirement benefit as of early 2026 was $2,076 per month.¹

Here's a quick look at where the major claiming ages land for someone born in 1960 or later:

Source: SSA.gov²

What If You Keep Working?

If you claim before your FRA and continue working, the earnings test can temporarily reduce your benefits.

In 2026, if you claim Social Security before FRA and keep working, your payment is reduced by $1 for every $2 you earn above $24,480 per year.¹ In the year you reach FRA, that threshold rises to $65,160, and only earnings before the month you hit FRA count.¹

Once you reach FRA, you can earn any amount without any reduction to your benefit.¹

It's also worth knowing that withheld benefits aren't gone forever. SSA recalculates and increases your monthly benefit at FRA to credit you for the months when benefits were withheld.²

Spousal and Survivor Benefits

If you're married, Social Security planning gets more layered -- and the stakes are higher.

Spousal Benefits

A spouse can receive up to 50% of the higher earner's full retirement age benefit.⁴ One important nuance: delaying your claim past your own FRA does not increase your spousal benefit. The 50% cap is based on your spouse's FRA benefit, regardless of when you file.⁴

Survivor Benefits

When one spouse passes away, the picture changes significantly. Survivor benefits can reach 100% of what the deceased was receiving, including any delayed retirement credits they earned.⁵ That's double the spousal benefit available while both spouses are alive.

This is one reason why the higher earner delaying their benefit often makes sense for married couples. A larger check today means a larger survivor benefit for a widowed spouse down the road.

Survivor benefits are available starting at age 60 (or 50 for those with a qualifying disability), and you must have been married for at least nine months before the recipient's death to qualify.⁶

A Big Change: The Social Security Fairness Act

If you spent part of your career in a government job -- as a teacher, police officer, firefighter, or other public employee -- there's a significant update worth knowing about.

The Social Security Fairness Act was signed into law on January 5, 2025. It permanently eliminated the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), two provisions that had reduced or eliminated Social Security benefits for over 2.8 million people who receive a pension from work not covered by Social Security.⁷

Starting February 25, 2025, SSA began adjusting monthly benefit payments for those affected. Beneficiaries owed additional benefits received a one-time retroactive payment deposited directly into their bank account on file with SSA.⁷

It's worth noting that this change does not affect the roughly 72% of state and local government workers who were already in Social Security-covered employment and paying into the system.⁷ If you're unsure whether you were affected, contact SSA directly to check.

Will Your Benefits Be Taxed?

This one surprises a lot of people. Social Security benefits can be partially taxable at the federal level, depending on your total income picture.

The IRS uses what's called "combined income" -- your adjusted gross income, plus nontaxable interest, plus half of your Social Security benefits -- to determine whether any of your benefits are taxable.⁸

The thresholds for 2026 are:

These thresholds have not been adjusted for inflation since 1984, which means more retirees get caught by them every year.⁸

One important clarification: the 85% figure doesn't mean an 85% tax rate. It means up to 85% of your Social Security benefits can become taxable income, which then flows through your normal income tax calculation.⁸

Wisconsin does not tax Social Security benefits at the state level, which is a meaningful advantage for Wisconsin retirees.

If you expect your benefits to be taxable, you can request voluntary withholding directly through your SSA account or by calling 1-800-772-1213. The IRS allows you to withhold 7%, 10%, 12%, or 22% from your monthly payments.⁹

How to Actually Apply

The process itself is more straightforward than most people expect. You have three options:

1. Online at SSA.gov -- the most convenient option. You can save your application and return to it at any time.
2. By phone -- call SSA at 1-800-772-1213 to schedule an appointment.
3. In person -- visit your local Social Security office by appointment.

You can apply online as early as 61 years and nine months of age, which gives SSA enough lead time to process your claim before the earliest possible start date of age 62.¹⁰

To apply, you'll generally need:

• Your Social Security number
• Proof of age (such as a birth certificate)
• W-2 forms or self-employment tax returns from the prior year
• Your bank routing and account numbers for direct deposit

One thing many people miss: if you plan to delay Social Security past age 65, you should still apply for Medicare within three months of your 65th birthday. Waiting longer can result in permanently higher premiums for Medicare Part B and Part D.²

The Decision Matters More Than the Process

The application itself takes maybe 30 minutes. The decision behind it deserves far more time than that.

Your health, your spouse's benefit, your other income sources, and your overall retirement plan all factor into when the right time to claim actually is. For many households, a well-thought-out strategy between spouses can make a meaningful difference in lifetime income.

It's worth working through the numbers carefully before you file. Once you claim, your benefit amount is largely locked in for life.

If you'd like to talk through your Social Security options as part of your broader retirement plan, we're happy to help. Feel free to reach out to our team at Dreyer Wealth Management.

Sources

1. NCOA -- Maximize Your Social Security: When to Claim Retirement Benefits (March 2026): https://www.ncoa.org/article/when-to-claim-social-security-retirement-benefits/
2. SSA.gov -- Benefits Planner: Retirement Age and Benefit Reduction: https://www.ssa.gov/benefits/retirement/planner/agereduction.html
3. SmartAsset -- Social Security Early Retirement Penalty Chart (May 2026): https://smartasset.com/retirement/social-security-early-retirement-penalty-chart
4. SSA 2026 Spousal Benefits Update (via MSN/SSA POMS): https://www.msn.com/en-us/news/other/ssa-updates-2026-spousal-benefits-rules-and-strategies/gm-GMCAD3610F
5. Benefora -- New Social Security Rules for Widows (April 2026): https://www.benefora.org/articles/social-security-rules-for-widows
6. 24/7 Wall St. -- Who Qualifies for Social Security Survivor Benefits in 2026: https://247wallst.com/investing/2026/02/21/who-actually-qualifies-for-social-security-survivor-benefits-in-2026/
7. SSA.gov -- Social Security Fairness Act: WEP and GPO Update: https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html
8. SmartAsset -- Is Social Security Income Taxable? (April 2026): https://smartasset.com/retirement/is-social-security-income-taxable
9. CNBC Select -- Is Social Security Taxed? Changes for 2026: https://www.cnbc.com/select/is-social-security-taxed/
10. LegalClarity -- How to Apply for Social Security Online: https://legalclarity.org/how-to-apply-for-social-security-online-steps-and-documents

This post is for educational purposes only and is not intended as tax, legal, or personalized financial advice. Social Security rules are complex and individual circumstances vary. Please consult with a qualified financial advisor and your tax professional before making claiming decisions.