What should you know about social security benefits?
By Allstate
Last updated: February 2026
Key points
- Claiming Social Security before full retirement age permanently lowers your monthly benefit, while waiting increases it.
- Your full retirement age depends on your birth year and ranges from 65 to 67.
- You can work while receiving benefits but earning over SSA limits before full retirement age temporarily reduces payments.
- Social Security benefits don’t start automatically, may be taxable based on income, and can provide benefits to spouses and eligible family members.
When it comes to something as important as Social Security, it's good to know you're getting as much from it as possible. Here are key questions and answers to help you understand how it works.
Will your payments be bigger if you wait until your full retirement age?
Yes. You can start Social Security as early as age 62, but your monthly benefit will be permanently reduced for each month you claim before your full retirement age. For example, a worker with a full retirement age of 67 who claims at 62 will receive about 30% less per month than if they waited until their full retirement age, according to the United States Social Security Administration (SSA).
What's your 'full retirement age?'
This chart from the SSA lists the full retirement age at which you may be entitled to receive full Social Security retirement benefits
If you were born in... | It's... |
|---|---|
1943-1954 | 66 |
1955 | 66 + 2 months |
1956 | 66 + 4 months |
1957 | 66 + 6 months |
1958 | 66 + 8 months |
1959 | 66 + 10 months |
1960 or later | 67 |
Can you work while getting social security?
As long as you're 62, you have the option to take Social Security, says the SSA. The SSA sets yearly earnings limits — if you're receiving Social Security benefits before your full retirement age and earn more than the limit, your benefit payments will be temporarily lowered based on how much you earn. Say you earn $10,000 over the limit. Your benefits would be reduced by $5,000. If you make $20,000 over the limit, it would be reduced by $10,000.
The good news is that you don't permanently lose your benefits if they're reduced. Instead, your payment amount is recalculated so that you receive the withheld money once you've reached full retirement age, notes the SSA. It's another way working in retirement may help stretch out your income over time.
Do social security benefits start automatically?
No. When you're ready to start receiving monthly benefits, you must apply for them with the SSA. You can do that over the phone (1-800-772-1213), in person, or via the SSA's online application.
Are social security benefits taxable?
Social Security benefits can be taxable depending on your income. If your income exceeds $25,000 as an individual (or $32,000 jointly), you'll have to pay federal income taxes on your benefits, according to the SSA. The rules for state income taxes vary from state to state.
How can social security benefits help your family?
Social Security benefits can help your family through spousal and survivor benefits. Let's say your monthly benefits turn out to be more than your spouse's. It's a common scenario, especially in families where one spouse paused their career to stay home with the kids. In cases like this, the SSA says your spouse may be eligible for an additional benefit — up to one-half of your full retirement amount.
After you die, your spouse will get your monthly benefit check or theirs — whichever is more. And if you have disabled children, kids under age 19, or elderly parents who depend on you for at least half their income, they could receive "survivor benefits," according to the SSA.