Social Security

There are actions you can take now to maximize your benefit

The amount of your Social Security benefit depends on your earning history as well as the timing of your claim to begin receiving these benefits. Typically, your monthly Social Security payment amount grows the longer you wait to claim it. You can collect benefits as soon as you turn 62, but taking benefits before your full retirement age results in a permanent reduction of as much as 25% to 30%. 

Full Retirement Age

Full retirement age is when you can start receiving your full Social Security benefit. The full retirement age increases gradually if you were born between 1955 and 1960, until it reaches age 67. For anyone born 1960 or later, full benefits are payable at age 67.

35 Years of Earnings

The amount of your monthly Social Security benefit is calculated using the 35 years that you earned the most. If you do not work for a total of 35 years, then zeros are included in the average for your non-working years - reducing your benefit amount.

Cost-of-Living Adjustments

Annually, the government adjusts the Social Security benefit for inflation to help offset the rising living expenses. The adjustment level depends on broad inflation levels determined by the government and has recently ranged from 0.3% to 2.8%.