Are you finally thinking about retirement? If so, it’s a good time to start getting things organized so you can start collecting your post-career benefits on time.
There are many potential sources of income for retirees: 401(k)s, IRAs, pensions and more. But one source of income remains consistent for most people: Social Security retirement benefits.
According to the Social Security Administration, nine out of 10 people aged 65 and older were receiving Social Security retirement benefits as of June 30, 2024.
But collecting your Social Security income isn’t automatic. Once you reach retirement age, you’ll have to apply to start receiving benefits.
In this article, we’ll talk about Social Security, how to determine your monthly amount, and how to apply. Plus, we’ll tell you who you can turn to for help with your retirement income.
Social Security is probably something you’ve heard about for most of your life. But do you really know what it is?
There’s a common misconception that Social Security is free money from the government for retirees and disabled individuals. But the truth is, it’s your money.
Social Security was established in 1935 and was a part of President Franklin Delano Roosevelt’s economic security proposal. Its intention was, in part, to address economic security for the elderly.
If you’ve ever worked in the United States, you’ve most likely been paying into Social Security for decades. In most cases, it’s automatically deducted from your paycheck.
So, once you retire, it’s time to start getting that money back!
There are several factors that can impact how much you receive from Social Security each month, including the following:
The amount you earn from Social Security depends on how much you paid in. Therefore, more years in the workforce and higher Social Security-covered earnings will increase your amount.
You can apply to receive Social Security benefits beginning at 62 years old. But the amount you receive will be lower than if you wait until your “full retirement age” to apply.
Your full retirement age depends on what year you were born.
| Year of Birth | Full Retirement Age |
|---|---|
| 1943 - 1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
| Source: Social Security Administration, 2025 | |
At age 65, you’re eligible for Medicare. If you enroll in Medicare Part B (medical insurance), the cost will be deducted from your Social Security payments.
You have the option to have your taxes deducted directly from your Social Security payments. If you choose not to, you’ll get more each month. But it will also increase the amount you have to pay back during tax season.
If you apply for Social Security retirement benefits before your full retirement age, you will be subject to maximum annual earnings. So, if you continue to work, your payments may be temporarily reduced if you reach your annual max.
Spouses of retirees may also be eligible to receive Social Security retirement benefits. Depending on their age at retirement, a spouse can receive as much as 50% of the worker’s benefit amount.
Just like the worker, a spouse can begin collecting Social Security retirement benefits at age 62. But it will be at a reduced rate until they reach their full retirement age.
If a spouse decides to retire early, their benefit amount will be reduced by a certain percentage for each month before their full retirement age.
Additionally, if a spouse is eligible for their own retirement benefits, and their benefit is higher than the spousal benefit, they will receive their own benefits instead.
You can complete the application process online. Before you do, you may start with the following:
Starting your application online is easy. Use the online account you created for the process in the previous section to apply.
Alternatively, you may schedule an appointment at your closest Social Security Administration office.
You need quite a bit of information for your Social Security application. Let’s go through it!
More details about the information you need to apply for Social Security is available online for your convenience.
After you submit your application, the Social Security Administration will review it. Their decision could take up to six weeks. However, 83% of applicants received their first payments on time, or within two weeks of applying.
Once your application is processed, you’ll receive a letter in the mail with their decision and more details. Then, you’ll receive your first payment in the month after the one you selected on your application.
The professionals at Veridian Investment Services can help you with all your retirement planning needs. In addition to your Social Security income, we can help you evaluate your other retirement income sources.
If retirement is still in the distant future, we can help you make sure you’re on track to meet your retirement goals. Learn more about how we can help you and set up an appointment today.