Question 1

When is the best age to claim Social Security benefits?

Accepted Answer

It depends on your health, financial needs, and longevity expectations. Claiming at 62 gives you benefits earlier but permanently reduces them by 30%. Waiting until Full Retirement Age (66-67) gives you 100% of your benefit. Delaying to 70 increases benefits by 8% per year after FRA. If you expect to live past 78-80, delaying typically provides more lifetime value.

Question 2

How do spousal benefits work with Social Security?

Accepted Answer

A spouse can receive up to 50% of the higher earner's benefit at Full Retirement Age, even if they never worked. You must be married for at least 1 year. If you claim spousal benefits early (before FRA), they're permanently reduced. Divorced spouses married 10+ years can also claim spousal benefits without affecting the ex-spouse's benefits.

Question 3

Can I work while collecting Social Security before Full Retirement Age?

Accepted Answer

Yes, but there's an earnings test. In 2025, if you're under FRA, Social Security withholds $1 for every $2 you earn above $22,320. In the year you reach FRA, it's $1 for every $3 above $59,520 until your birthday month. After FRA, there's no earnings limit, and withheld benefits are recalculated into your future benefits.

Question 4

Will my Social Security benefits be taxed?

Accepted Answer

Possibly. If your combined income (AGI + nontaxable interest + half of Social Security) exceeds $25,000 (single) or $32,000 (married filing jointly), up to 85% of benefits become taxable. This doesn't mean 85% tax rate—it means 85% of benefits are subject to your regular income tax rates.

Question 5

How are Social Security benefits calculated?

Accepted Answer

Benefits are based on your Average Indexed Monthly Earnings (AIME) from your highest 35 years of earnings. The Social Security Administration applies bend points to your AIME: 90% of the first $1,226, 32% of earnings between $1,226-$7,391, and 15% above that (2025 figures). This formula results in your Primary Insurance Amount (PIA) at Full Retirement Age.

Question 6

What is Primary Insurance Amount (PIA)?

Accepted Answer

Your PIA is your base Social Security benefit at Full Retirement Age (FRA). It's calculated using: Your highest 35 years of earnings (adjusted for inflation), Average Indexed Monthly Earnings (AIME), and the 'bend points' formula: 90% of first $1,226, 32% of $1,226-$7,391, 15% above (2025).

Question 7

What is my Full Retirement Age (FRA)?

Accepted Answer

Question 8

What's the difference between claiming early vs delaying?

Accepted Answer

Claiming Early (age 62): Permanent reduction of ~30% (if FRA is 67), more years of benefits but smaller checks, break-even typically around age 78-80. Delaying (to age 70): Permanent increase of ~24% (8% per year from FRA to 70), fewer years but larger checks, best for longevity and survivor benefits.

Question 9

What are common Social Security claiming mistakes to avoid?

Accepted Answer

1) Claiming at 62 without understanding the permanent 30% reduction. 2) Not checking your earnings record - errors can reduce benefits significantly. 3) Ignoring spousal/survivor benefits - coordination can add $50K-$100K+ lifetime. 4) Claiming early while still working - earnings test reduces benefits (before FRA). 5) Not planning for taxes - up to 85% of benefits may be taxable.

Claiming Age	Monthly	Annual	Lifetime (to 85)	% of PIA
Age 62	$1,898	$22,772	$523,765	70.0%
Age 67 (FRA)	$2,711	$32,532	$585,576	100%
Age 70	$3,362	$40,340	$605,095	124.0%

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