The monthly Social Security payment is one of the most important economic pillars for those who retire in the United States. It provides stability to millions of older citizens who depend on that income to cover their basic needs.
However, not all Americans automatically qualify for these payments. To be eligible, it is necessary to meet specific requirements established by the Social Security Administration (SSA).
How and when to apply for Social Security in the U.S.
The earliest age to apply for the benefit is 62 years old. Although it may seem like a good option, doing so early means a permanent reduction in the monthly amount. To receive 100% of the payment, one must wait until full retirement age (FRA).
Those who choose to wait until age 70 can receive up to an additional 24%. This strategy allows them to maximize the monthly income, which is crucial in a context of rising inflation. Delaying the application can make a difference in long-term financial stability.
Additionally, retirees must pay attention to COLAs. These are annual updates that adjust the benefit amount according to the cost of living. They are generally applied in January each year.
Ten key things for retirees in 2025
Not everyone automatically qualifies for Social Security benefits. Only those who have worked at least ten years in covered jobs and have 40 credits can apply. In addition, it is mandatory to have paid taxes to the SSA during that time.
Applying for the benefit at age 62 is legal, but it permanently reduces the monthly payment. On the other hand, doing so at age 70 increases the amount by 24% compared to the standard benefit. Full retirement age allows access to 100% of the payment.
COLAs are applied once a year and take inflation into account. Their impact is usually reflected in January, which helps keep purchasing power. However, inflation remains a challenge that can erode the real value of the benefit.
Social Security in 2025 requires strategic decisions. The age at which one applies and understanding its rules can drastically increase or reduce payments. Planning well, knowing about COLAs, and understanding how inflation affects it will be essential for any retiree in the U.S.