Your 5 Most-Asked Questions About Social Security
June 16, 2025
Barry S. Parks, CTFA
Vice President and Wealth Planning Officer
Washington Trust Wealth Management
Whether you're nearing retirement or just planning ahead, understanding how Social Security works can make a big difference for your retirement strategy. Here are the answers to the questions people most often ask us.
1. How much will I get?
Your Social Security benefits depend on several factors, including your earnings history, the age at which you start collecting benefits, and your work record. The formula is complicated, but it averages the income from your 35 highest-earning years.i Visit ssa.gov/myaccount to access your earnings record and get an estimate based on your actual earnings.
2. What is my full retirement age?
Your full retirement age is the age when you can start receiving your full Social Security retirement benefit without any reductions to your benefit. It’s based on the year you were born:ii
- 1954 or earlier: Your full retirement age is 66.
- 1955–1959: Your full retirement age increases gradually from 66 and 2 months to 66 and 10 months.
- 1960 or later: Your full retirement age is 67.
If you claim benefits before your full retirement age, your monthly benefit amount will be permanently reduced. Your benefit increases if you delay receiving benefits past your full retirement age. You gain about 8% more per year for each year you delay, up to age 70 (your maximum benefit age). After 70, your benefit maxes out.
Example:
If your full retirement age is 67 and your monthly benefit is $2,000:
- Claim at 62: You get ~$1,400/month (about 30% reduction)
- Claim at 67: You get the full $2,000/month
- Claim at 70: You get ~$2,480/month (24% increase over full retirement age amount)
Learn more about your full retirement age. And sign into your account at www.ssa.gov to check your eligibility for benefits, apply for benefits, and more.
3. Is Social Security taxable?
Yes, it can be, depending on your income.iii Social Security benefits may be taxed if your combined income exceeds certain thresholds. Combined income includes your adjusted gross income (AGI), nontaxable interest (like municipal bonds), and half of your Social Security benefits.
Fifty percent of your benefits may be taxable if your combined income is over $25,000 (for individuals) or over $32,000 (for married filing jointly). Up to 85% of your benefits may be taxable if your combined income is over $34,000 (individuals) or over $44,000 (married filing jointly). Learn more here.
What is the Social Security Fairness Act?
Signed into law on January 5, the Fairness Act ends the Windfall Elimination Provision and Government Pension Offset, which reduced or eliminated the Social Security benefits of over 2.8 million people who receive a pension based on work that was not covered by Social Security because they did not pay Social Security taxes. This law increases Social Security benefits for certain types of workers, including some teachers, firefighters, and police officers in many states; federal employees covered by the Civil Service Retirement System; and people whose work had been covered by a foreign social security system. Learn more about the Fairness Act and whether it may apply to you.
4. Is my Social Security affected if I work?
If you start collecting Social Security before your full retirement age and continue to work, your benefits could be reduced—but only temporarily.iv
For 2025:
- If you're under your full retirement age and earn more than $23,400, Social Security will withhold from your benefit $1 for every $2 you earn above that limit.
- In the year you reach your full retirement age, the limit jumps to $62,160, and $1 of benefit is withheld for every $3 earned above the limit, up until the month you reach full eligibility.
- Once you hit your full retirement age, you can work as much as you want with no reduction in your benefits.
The good news: Any benefits withheld due to working aren’t lost—they’ll be recalculated and added back in once you reach full retirement age. Learn more here.
5. When should I start collecting Social Security?
This is the big question—and the answer depends on your goals, health, and financial situation. You can start as early as age 62, but your benefits will be permanently reduced (by up to 30% if your full retirement age is 67). On the flip side, if you delay past your full retirement age, you can boost your benefit by 8% per year up to age 70.
Delaying your benefit as long as possible is a hedge against longevity for you and potentially for your spouse.
There is a breakeven age where your higher, delayed cumulative benefit exceeds the amount you did not collect by waiting. This is typically about age 81 for most people. If you live beyond your breakeven age, your lifetime, cumulative benefit will be higher by delaying.
If your spouse has a lower benefit than you, waiting for your higher benefit can also increase their cumulative lifetime benefit, resulting in two increased benefits from one delay. The younger your spouse is, the more impactful the higher benefit is.
When to start collecting Social Security is not one-size-fits-all and should be part of a broader discussion with your wealth advisor about your retirement income strategy.
Washington Trust Wealth Management Can Help
Navigating Social Security can feel overwhelming, but when you understand the rules, it puts you in control. Your advisors at Washington Trust Wealth Management can help you build a smart, personalized retirement strategy that optimizes your retirement income and tax efficiency.
i Your Retirement Benefit: How It’s Figured. Social Security Administration
ii Retirement Age Calculator: Social Security Administration
iii IRS reminds taxpayers their Social Security benefits may be taxable. IRS.gov
iv Receiving Benefits While Working: Social Security Administration
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