Social Security Fundamentals

As you reach your 60s, several important financial decisions come into focus—one of the most critical being when to start collecting Social Security. Choosing the right filing strategy can make a significant difference in the total benefits you receive.

For many retirees, Social Security serves as a cornerstone of their retirement income.

With hundreds of filing options available, how do you pick the right one? When should you file? And how do spousal benefits factor into the decision?

If you’re evaluating your choices, this guide highlights key milestones and information to help you begin.

Key Milestones for Claiming Social Security Benefits

You can file for Social Security benefits anytime between ages 62 and 70. Several important ages can influence the best time to file:

Age	Milestone
59½	Penalty-free retirement account withdrawals begin (IRA, 401(k))
60	Earliest eligibility for survivor benefits
62	Earliest age to claim Social Security (reduced benefits)
63½	Key age for COBRA coverage bridging to Medicare
65	Medicare enrollment begins
66	Full Retirement Age (FRA) for those born 1943–1954
70	Maximum Social Security benefit achieved
70½	RMDs begin (born before July 1, 1949)
72	RMDs begin (born July 1, 1949 – Dec 31, 1950)
73	RMDs begin (born 1951–1959)
75	Future RMD start age for those born 1960 or later (starting 2033)

Age 59½ – Penalty-Free Retirement Withdrawals Begin

At 59½, you can start taking withdrawals from traditional IRAs, 401(k)s, and similar accounts without the 10% early withdrawal penalty. However, standard income taxes still apply.

Unless withdrawals are necessary, many retirees benefit from allowing these accounts to continue growing tax-deferred.

Age 60 – Eligibility for Survivor Benefits

This is the earliest age you can claim a survivor benefit if your spouse or former spouse has passed away. Generally, the marriage must have lasted at least 10 years, and you must not have remarried before age 60.

Age 62 – Earliest Age to Claim Social Security

Age 62 marks the first opportunity to claim Social Security benefits. However, doing so results in permanently reduced monthly payments—for you and for any surviving spouse who may later claim survivor benefits.

Some pension plans may also offer payouts beginning at age 62.

Impact of Early or Delayed Claiming

Claiming Social Security before your full retirement age (FRA) reduces your monthly benefit, while waiting increases it. Here’s how your benefit changes:

• Claim at 62: About 25%–30% reduction in monthly benefits
• Claim at FRA (66–67): Receive 100% of your benefit
• Claim at 70: Up to 32% higher benefit than FRA (increases about 8% per year delayed)

Age 63½ – Health Coverage Bridge to Medicare

Although not an official Social Security milestone, age 63½ is crucial if you rely on COBRA health coverage after employment ends. COBRA coverage typically lasts 18 months, helping bridge the gap until Medicare eligibility at age 65.

Age 65 – Medicare Enrollment Begins

At 65, you become eligible for Medicare. Most individuals should enroll during their seven-month initial enrollment period to avoid lifelong penalties.

If you’re still working and have employer-sponsored coverage, special rules may apply.

Age 66 – Full Retirement Age for Many

For those born between 1943 and 1954, full retirement age (FRA) is 66. Reaching FRA unlocks additional claiming strategies.

However, some strategies—such as “File and Suspend”—were phased out with tax law changes in 2016. It’s wise to consult a financial professional to explore any remaining options.

Age 70 – Maximum Social Security Benefit

Delaying your filing until age 70 means your benefit amount will reach its highest possible value. After age 70, there’s no further increase, so it’s best to file if you haven’t yet.

Age 70½ – RMD Start for Those Born Before July 1, 1949

If you were born on or before June 30, 1949, you were required to begin required minimum distributions (RMDs) from pre-tax retirement accounts at 70½. The first RMD was due by April 1 of the year after reaching that age.

Age 72 – RMD Start for Those Born July 1, 1949 – December 31, 1950

The SECURE Act raised the RMD age to 72 for this group. For instance, someone turning 72 in 2025 must take their first RMD by April 1, 2026, and the next by December 31, 2026.

Age 73 – New RMD Age for Most Retirees

If you were born between January 1, 1951, and December 31, 1959, your RMD age is now 73. Beginning in 2033, the RMD age will shift again to 75 for those born in 1960 or later, unless further legislation changes the rules.

Age 75 – Future RMD Start Age for Those Born 1960 or Later (Starting 2033)

If you were born in 1960 or later, current law (as of 2025) sets your first required minimum distribution age at 75, starting in 2033.

Recent Changes to Social Security Rules

The Bipartisan Budget Act of 2015 brought major changes to Social Security strategies:

“File and Suspend” Eliminated — This strategy allowed retirees to file for benefits, suspend them, and let spouses or dependents collect based on their record while their own benefits accrued. This tactic was phased out in May 2016, with limited grandfathering for those who acted by April 29, 2016.

Today, suspending benefits also halts any spousal or dependent payments tied to your record.

Restricted Applications Limited — Previously, retirees could file for spousal benefits first and delay their own benefits. Now, only individuals born on or before January 1, 1954, can use this strategy. Others must file under the standard rules.

These changes make it even more important to work with a knowledgeable advisor when planning your filing strategy.

Working While Collecting Benefits & Taxation

Working While Collecting Benefits

If you claim Social Security before your full retirement age and continue to work, your benefits may be temporarily reduced based on how much you earn. These reductions stop at FRA, and your benefit is recalculated to give you credit for withheld amounts.

Are Social Security Benefits Taxable?

Depending on your total income, up to 85% of your Social Security benefits may be subject to federal income tax. Be sure to consider this in your retirement income planning.

Choosing the Right Time to File

Deciding when to start your Social Security benefits—or when your spouse should—is one of the most impactful decisions you’ll make in retirement. The difference could add up to tens of thousands of dollars over your lifetime.