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Maximizing Your Social Security Benefits - USA Today
You are now 62 and eligible to start receiving your Social Security benefits. But should you start them? If you were born in 1960 or later, your full retirement age (FRA) is 67. If you start your benefits at 62, your benefit will be reduced by 30%.
If you are still working, there is also an earnings limit that allows you to only earn $24,480 in 2026, or Social Security will withhold $1 for every $2 you go over the limit. If you are earning too much money, you will not be allowed to start your benefits, as your income is too high.
The maximum benefit for someone turning 62 in 2026 is $2,964. To receive this amount, you had to earn the maximum amount taxable by Social Security for 35 years. The maximum benefit for someone reaching their FRA this year is $4,152. It is quite a significant difference.
Not everyone can wait to maximize their Social Security benefits; health, job loss, or family needs may necessitate claiming them early. If you lose your job and start your benefits, you have a twelve-month period to cancel them. It is known as the “do-over option.” The bad part about this option is that you must repay all the benefits you receive, including any dependent benefits, at one time. Most people can’t afford to do this. The other option is that when you finally reach your FRA, you can suspend your benefits, and they will start accruing delayed retirement credits (DRCs) on your current benefit amount. DRCs accrue at a rate of 2/3 of 1% per month, or 8% per year. You can then let them grow until age 70 for a 24% increase, or restart them at any time before then. The good news is, you don’t have to pay anything back.
Kailey Hagen wrote an article on how to boost your Social Security benefit. Read her full article here …
If you have questions about Social Security, submit your questions to ssadvisor@amacfoundation.org or call (888)750-2622, and one of the AMAC Foundation’s NSSA Accredited Social Security Advisors will be happy to answer your questions.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.