Retirement used to be simpler. You worked 40 years, got a pension, claimed Social Security at 62, and settled into a predictable routine. But if you’re retiring in the next 5–10 years, the game has changed. Today, people are living longer, changing careers more often, and relying less on employer pensions.
According to the Social Security Administration (SSA), the number of people receiving Social Security benefits in October 2024 was 72.8 million. Out of these, approximately 68.3 million received benefits exclusively from Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) programs.
It saves a lot of Americans in their old age, but too often, people make decisions about it based on vague advice. They get influenced through anxiety about the future, or what their friends did, and not by actual strategy. If you are curious about the best way to approach social security for your retirement, then read on.
The Timing Trap — Why “As Soon As Possible” May Cost You
As Investopedia points out, the youngest age at which you can claim social security retirement is 62. However, those who wait past the full retirement age of 67 get to earn delayed retirement credits and can thus collect more.
That said, many Americans still cash out the moment they hit 62. They think, “Time to collect what I’ve earned.” They aren’t alone, as most people start collecting Social Security the moment they become eligible. As MyStages notes, your benefit becomes 77% higher if you claim at 70 instead of 62. Do you really want to pass up on that kind of margin?
People are aware that they are losing money doing so, yet, why do so many redeem? Fear. Fear they’ll die before they “get their money back.” Fear the system will collapse. But here’s the reality: Social Security is designed to support people living into their 80s and 90s.
You should really be thinking about this to secure security in your 80s, when work is no longer an option, and healthcare costs skyrocket. People who delay often say they sleep better at night knowing they have a larger, inflation-adjusted income for life.
That’s the main point of this social security guide. You want to make a simple mindset shift that benefits you in the long run. What is this shift? Don’t think of claiming SS as “collecting what’s yours.” Think of it as insuring your future self against living a long, expensive life.
Your Work History Isn’t Just a Number
Social Security isn’t just about how long you’ve worked—it’s about how much you’ve earned during your top 35 working years. That surprises a lot of people. If you only worked 28 years? They’ll still average it over 35, meaning 7 zeros are factored in. And if your early career years had low wages? Those years drag your average down, even if you’ve earned more recently.
This is where smart decisions in your 50s and 60s can have an outsized impact. Every extra year you work—and every higher-earning year you add—can replace a lower one in the formula, boosting your monthly benefit. Even going from part-time to full-time work for a few years can matter more than you think.
This is something that women are also considering when making lifestyle choices. Unpaid maternity leave, taking extra time off, and working fewer hours, all these can result in a noticeable payout disparity compared to those who maximize earnings. For instance, although over 52 million retired workers benefited from Social Security in 2024, women receive $1,714 compared to the $2,106 that men receive.
And then there’s COLA or cost-of-living adjustments. Your benefits will rise with inflation, but they’re applied after your base benefit is locked in. So if you file early and get a smaller base amount, you’re locking in a smaller lifetime trajectory, COLA or not.
Moral of the story? Don’t assume it’s “too late.” If you’ve got a few strong earning years left in you, use them. Your future self will thank you monthly.
Couples, Divorcees, and Widows — Don’t Leave Money on the Table
Social Security is a solo benefit on paper, but in practice, it’s often a team sport. And understanding how spousal, survivor, and even ex-spouse benefits work can mean the difference between scraping by and living comfortably.
One only has to look at the numbers to see why thinking about these strategic decisions makes sense. For instance, the average spousal benefit was $891, which pales in comparison to the retired-worker benefit of $1,838.
The spousal benefit exists to help a lower-earning spouse (or one who didn’t work) receive up to 50% of their partner’s full benefit—but only if the higher earner files first. Here’s where it ties in:
- If the higher-earning spouse files early and takes a reduced benefit (say, at 62), their own payout is smaller, and the spousal benefit is also reduced because it’s based on their “full retirement age” amount, not the delayed one.
- That means couples must coordinate when each of them files to maximize the total household income over time.
And here’s where it gets interesting: divorced individuals may be eligible for those same benefits—even if your ex remarried—as long as your marriage lasted at least 10 years and you’re currently unmarried. This one shocks a lot of people. Thus, learn the rules now, or you could leave thousands on the table.
Frequently Asked Questions
1. What is social security retirement?
Social Security retirement is a government program in the U.S. that gives you monthly payments after you stop working, kind of like a paycheck for your retirement years. You qualify by working and paying Social Security taxes during your career.
2. What is the maximum Social Security benefit when you retire?
The max monthly Social Security benefit is about $5,108 if you retire at age 70. You only get that much if you earned the maximum taxable income for at least 35 years and delay taking benefits until 70.
3. Can you get Social Security after 70?
Yep! If you wait until after 70, your monthly benefit won’t grow anymore, but you can still claim it anytime. In fact, waiting until 70 gives you the highest possible payout. After that, there’s no reason to delay claiming.
Ultimately, social security ought to be part of a larger strategy that touches your taxes, investments, health care, and even your housing decisions. That said, don’t rely solely on advice from HR or a well-meaning relative.
Most people mean well, but very few understand how nuanced Social Security decisions can be. Talking to a fiduciary financial planner (not just a generalist) before you file could help uncover strategies unique to your situation. Above all, don’t let fear or familiarity drive your choices.