Social Security:
Everything you need to know
What is Social Security?
Social Security is a U.S. government program that gives financial support to retirees, people living with disabilities, and surviving spouses of deceased workers. Funded through payroll taxes, this program aims to ensure a basic level of income for working people in their later years.
A large percentage of retirees rely on Social Security income. Understanding the basics will help you get the most out of these retirement benefits and enjoy a more secure future.
Who can claim Social Security?
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Whether you qualify for Social Security depends on your earnings record of the earnings record of your spouse and you need to meet the following criteria.
Be at least 62 years old:
This is the minimum age at which you can start receiving benefits.
Have worked at least 10 full—though not necessarily consecutive—years:
1 full year of employment equals 4 credits. You need to have earned 40 credits and have had Social Security taxes withheld from your paycheck.
Or be eligible via a spouse or ex-spouse:
If your spouse or ex-spouse worked for 10 or more years, you might qualify benefits based on their record.
Keep in mind that Social Security benefits may also be available for children, spouses, former spouses or people with disabilities. And if a loved one dies, certain family members (widows or widowers, minor children and dependent parents) may qualify for survivor benefits.
Who can claim Social Security?
Deciding when to start claiming Social Security benefits can have a big effect on how much you receive each month. It's an especially important consideration for women, who typically longer and earn less than men.
Early claiming
You can collect a Social Security retirement benefit as early as age 62. However, depending on when your birthday falls, not waiting until full retirement age could significantly reduce your benefits.
For instance, if you're eligible for $1,000 a month at full retirement age, you might get only $750 a month at age 62. The reduction decreases slightly each year you delay claiming until you reach your full retirement age.
Claiming at full retirement age
This varies based on the year you were born. It's age 66 for people born from 1943 to 1954, and it gradually increases to 67 for those born in 1960 or later.
Delayed claiming
If you wait to file for Social Security until after your full retirement age, you can increase the size of your monthly benefits by as much as 24% to 32%, depending on the year you were born. Let's say you're entitled to a monthly payment of $1,900 at 67—the full retirement age for people born in 1960 or later. That payment could be as much as $2,508 if you can delay it for 3 more years. It’s important to know that there is no benefit increase after age 70.
Other factors to consider
Delaying a claim for as long as possible could make sense for some people, but there are cases where early retirement is the better option.
Claiming before full retirement age might be a good choice if:
- Your health and family history suggests that you won't have an exceptionally long life.
- You need the income for immediate cash flow.
- Your family members (such as a disabled child) can qualify for additional benefits.
- To enhance your benefits as a couple. One spouse could start receiving benefits while the other delays, enabling those delayed benefits to grow.
Claiming Social Security after your full retirement age, which increases monthly benefits, could be a better option if:
- Your life expectancy is longer.
- You're still working.
- You have other sources of retirement income.
- Benefits for a surviving spouse need to be maximized.
- You're looking for tax savings options and a way to help retirement investments last longer.
Common Social Security strategies
Get the timing right, and you could potentially boost monthly benefits for yourself and a spouse or dependent.
Here are three strategies to consider:
Delayed Claiming
By waiting to claim Social Security benefits you'll earn "delayed retirement credits". If you were born in 1943 or later, you can increase your benefit by up to 8% per year for each year you delay your claim after your full retirement age, up to age 70.
File and suspend
Though less common, this strategy allows you to file at full retirement age then "suspend" the claim to earn delayed retirement credits. This can be useful if:
- You change your mind after filing early
- You want to avoid taxes due to increased income (more on this later)
Restricted filing
Married couples can coordinate the timing of each spouse's claim, allowing one spouse to get the benefit from the other's record while delaying his or her own benefit. Note: this strategy is no longer available for people who were born on or after January 2, 1954.
Considerations around marriage
What if your spouse has died?
You can claim Social Security benefits if your spouse has died. You can begin claiming these "survivor benefits" as early as age 60 (or age 50 if you are disabled). If you wait until your full retirement age, you can receive 100% of your deceased spouses benefit amount.
What if you're divorced?
If you're divorced and were married for 10 years or longer, you can claim benefits on your ex-spouse's record if:
- You are unmarried
- You are 62 or older
- The benefit from your ex-spouse's record is more than you'd get from your own.
If your ex-spouse dies, you may be entitled to a survivor's benefit. Reduced benefits can be claimed as early as 60 and full benefits at full retirement age. If you remarry after age 60, there's no impact on your eligibility.
Are Social Security benefits taxed?
Yes, your Social Security benefits are taxed if your income reaches certain levels (see the chart below). Generally, the more you make, the more your benefits could be taxed. The percentage of Social Security payments that is subject to tax are taxed at the same rate as ordinary income and retirement plan withdrawals.
It's important that you keep taxes in mind when you:
- Plan to claim Social Security
- Decide whether (and how much) to work in retirement
- Consider making withdrawals from retirement savings accounts
Tax implications based on your filing status
Married, filing jointly
| Provisional income | Under $32,000 | $32,000 - $44,000 | Over $44,000 |
| Amount of social security subject to tax | 0% | Up to 50% | Up to 85% |
Married, filing separately while living with spouse
| Provisional income | Over $0 |
| Amount of social security subject to tax | Up to 85% |
Single, head of household; qualifying widow(er); or married, filing separately while living apart from spouse
| Provisional income | Under $25,000 | $25,000 - $34,000 | Over $34,000 |
| Amount of social security subject to tax | 0% | Up to 50% | Up to 85% |
In Conclusion
As you can see, it's important to think about Social Security as part of your retirement income plan. Once you have a sense of the guaranteed monthly benefits you will get through Social Security, you can build them into what you'll use to cover essential expenses in retirement. If you have a gap in guaranteed lifetime income, you may want to consider a fixed annuity, one of the few sources of guaranteed lifetime income* beyond Social Security.
To understand how Social Security benefits may apply to your own situation, speak with a tax professional or financial consultant. You can also visit the SSA's website (
This is for general informational purposes only. It is not intended to be used, and cannot be used, as a substitute for specific individualized legal or tax advice. Tax and other laws are subject to change, either prospectively or retroactively. Individuals should consult with a qualified independent tax advisor, CPA and/or attorney for specific advice based on the individual’s personal circumstances. Examples included in this presentation, if any, are hypothetical and for illustrative purposes only.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
Investment products may be subject to market and other risk factors. See the applicable product literature or visit TIAA.org for details.
Retirement check refers to the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.
Investment decisions should be made based on the investor's own objectives and circumstances. Advice is obtained using an advice methodology from an independent third-party.
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