The best age to start claiming Social Security benefits depends on your individual circumstances, including your health, financial needs, and retirement plans. You can begin receiving benefits as early as age 62, but your monthly benefit will be reduced. Full retirement age (FRA) varies between 66 and 67, depending on your birth year. Delaying benefits past your FRA can increase your monthly benefit by up to 8% per year until age 70.

Social Security benefits are calculated based on your highest 35 years of earnings. The Social Security Administration (SSA) uses these years to determine your Average Indexed Monthly Earnings (AIME). Your AIME is then applied to a formula to calculate your Primary Insurance Amount (PIA), which is the benefit you receive at full retirement age.

Yes, if you are under full retirement age and earn more than the annual earnings limit, your benefits may be reduced. In 2023, the limit is $21,240. For every $2 you earn over the limit, $1 will be withheld from your benefits. The year you reach full retirement age, the limit increases, and the reduction rate changes to $1 for every $3 earned over $56,520. After you reach full retirement age, there is no earnings limit.

Yes, Social Security benefits can be taxable depending on your combined income. Combined income includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits. If your combined income is between $25,000 and $34,000 for individuals ($32,000 and $44,000 for married couples filing jointly), you may have to pay tax on up to 50% of your benefits. If your income exceeds these thresholds, up to 85% of your benefits may be taxable.

Yes, you can receive benefits based on your spouse’s record if you are at least 62 years old and your spouse is receiving benefits. Spousal benefits can be up to 50% of your spouse’s full retirement amount. If you have your own work record, you will receive the higher of your own benefit or the spousal benefit. If you are divorced, you can still receive spousal benefits if you were married for at least 10 years and meet other criteria.

Several strategies can help maximize your Social Security benefits. Delaying benefits until age 70 can significantly increase your monthly payments. Coordinating benefits with your spouse to maximize spousal and survivor benefits can also be beneficial. Additionally, working longer to increase your highest 35 years of earnings and being mindful of the earnings limit if you plan to work while receiving benefits can further optimize your benefits.