Retire and start receiving the social security benefits In the United States, they are not necessarily the same decision.
A person can stop working and wait to apply for the benefit or start receiving it while still employed.
The age at which you apply will influence the amount you will receive each month for the rest of your life.
Workers who meet the requirements can apply for the retirement benefits from age 62. However, doing so before reaching the full retirement agewhich depends on the year of birth, means receiving less each month.
Waiting allows you to obtain a larger amount, but the benefit stops increasing at age 70.
“One of the most common misconceptions is that everyone should apply for benefits as soon as they turn 62,” said Steve Hahn, director of communications at AARP North Carolina, in writing to Enlace Latino NC .
The organization explained that doing so may be convenient in some cases, but there is no single best age for everyone.
To make that decision, it's important to know how the benefit is obtained, how it's calculated, and what happens if you continue working while receiving it.
Who is eligible to receive Social Security retirement benefits?
Not only is it necessary to meet the age requirement, but to receive benefits based on one's own work history, a person generally needs to have accumulated at least 40 work credits.
Credits are earned by working and paying Social Security taxes. In 2026, you will receive one credit for every $1,890 in income, with a maximum of four per year.
This means that a person can accumulate the four annual credits by earning $7,560 in income covered by the program and that, generally, they need at least ten years of work to reach 40.
However, not having enough personal credit does not necessarily mean that the person is excluded.
“Spouses, widows, widowers, and some ex-spouses may also qualify to receive benefits based on a worker’s earnings history,” Hahn said.
Social Security is an important source of retirement income, but in many cases it's not the only one. Read: What alternatives exist for saving for retirement in the United States, even if your employer does not offer a retirement plan?.
How is the monthly amount calculated?
Two people of the same age can receive very different payments. Social Security doesn't set a single amount; it calculates the benefit based on factors such as income, age, and circumstances. 35 years in which the worker had the highest income and paid taxes to the program.
If the person worked for less than 35 years, the remaining years are counted with zero income.
This reduces the average used to calculate the benefit and may especially affect those who came to the United States as adults or had prolonged periods without income reported to Social Security.
Working for more years can also change your pay, even after you've started receiving it.
“If a person continues to earn higher incomes after applying for benefits, those incomes can replace years of lower incomes in the Social Security formula and increase their future payments,” Hahn explained.
The calculation only considers taxable Social Security earnings. Other income, such as investments or a pension, does not increase the benefit.
Understanding how retirement works is just the first step. Now you can Use our interactive calculator to estimate how much you could receive monthly in Social Security benefits..
What changes if you apply for benefits at age 62, at full retirement age, or at age 70?
For people born in 1960 or later, the The full retirement age is 67.If they were entitled to a monthly benefit of $1,000 at that age, the payment would change as follows:
- At age 62 they would receive approximately $700 per month.
- At age 67 they would receive the full $1,000.
- At age 70 they would receive approximately $ 1,240 monthly.
The reduction for starting to receive benefits before full retirement age is permanent. In contrast, those who wait until after that age accumulate credits that increase their benefit each month until they reach 70.
It is important to note that the percentages in the example correspond to people born in 1960 or later. For those born before that, the Full retirement age varies depending on the year of birthAnd also that the actual payment amount will depend on each worker's earnings history.
Can you continue working while receiving benefits?
Yes, a person can work part-time or full-time after starting to collect retirement benefits.
However, if you have not yet reached full retirement age, your employment income may cause Social Security to temporarily withhold a portion of your payments.
These rules apply in 2026:
- If the person will be below full retirement age for the entire year, they can earn up to $24,480 without having their payments withheld. Above that amount, Social Security withholds $1 for every additional $2.
- If you reach full retirement age during 2026, the limit is $65,160 for the months prior to reaching that age. $1 is withheld for every $3 over that limit.
- From the month in which they reach full retirement age, you can earn any amount without their income reducing profits.
“Those withheld benefits are not permanently lost. Once the person reaches full retirement age, Social Security recalculates the benefit and credits the months in which the payments were withheld,” Hahn explained.
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