Question 1

What is Full Retirement Age (FRA) for Social Security?

Accepted Answer

Full Retirement Age depends on your birth year. For people born in 1960 or later, FRA is 67. For those born between 1943 and 1954, FRA was 66. It gradually increases by two months per birth year from 1955 to 1959. Claiming before FRA permanently reduces your benefit; delaying past FRA increases it.

Question 2

How much is my Social Security benefit reduced if I claim at 62?

Accepted Answer

Claiming at 62 with an FRA of 67 results in a 30% permanent reduction. The reduction is 6.67% per year for the first 36 months before FRA and 5% per year for each additional month. If your FRA benefit would be $2,000/month, claiming at 62 gives you $1,400/month for life.

Question 3

How much extra do I get by delaying Social Security to 70?

Accepted Answer

For each year you delay past FRA (up to age 70), your benefit increases by 8% per year through delayed retirement credits. If your FRA benefit at 67 is $2,000/month, waiting until 70 increases it to $2,480/month (a 24% increase). There is no additional benefit for delaying beyond age 70.

Question 4

Are Social Security benefits taxed?

Accepted Answer

Up to 85% of your Social Security benefits may be subject to federal income tax, depending on your combined income. For single filers, taxation begins when combined income exceeds $25,000; for married filing jointly, the threshold is $32,000. Thirteen states also tax Social Security benefits, though many provide exemptions for lower-income retirees.

Question 5

Can I work and collect Social Security at the same time?

Accepted Answer

Yes, but if you are below FRA and earn above the annual earnings limit ($24,120 in 2026), Social Security withholds $1 for every $2 earned above the limit. In the year you reach FRA, the limit is higher ($62,160) and the withholding is $1 for every $3. Once you reach FRA, there is no earnings limit, and any previously withheld benefits are recalculated to increase your monthly amount.

Question 6

How is my Social Security benefit calculated?

Accepted Answer

The SSA takes your highest 35 years of earnings (adjusted for inflation), calculates your Average Indexed Monthly Earnings (AIME), and applies a progressive formula. For 2026, the formula is: 90% of the first $1,275 of AIME, plus 32% of AIME from $1,275 to $7,685, plus 15% of AIME above $7,685. Years with no earnings count as $0.

Question 7

What is the maximum Social Security benefit in 2026?

Accepted Answer

The maximum Social Security benefit at FRA in 2026 is $4,187 per month, or $5,108 per month if you delay to age 70. To qualify for the maximum, you must have earned at or above the Social Security taxable maximum ($184,500 in 2026) for at least 35 years.

Full Retirement Age (FRA)	67
Reduction for claiming at 62	30.0%
Increase for delaying to 70	+24.0%
Age 62 vs FRA break-even age	Age 82
FRA vs Age 70 break-even age	Age 86
COLA assumption	2.5%/year

Age	At 62 / At FRA / At 70
Age 65	$51,670.50 / — / —
Age 70	$146,766.75 / $73,815.00 / —
Age 75	$254,359.42 / $209,666.78 / $156,428.34
Age 80	$376,090.66 / $363,370.60 / $333,412.64
Age 85	$513,818.38 / $537,272.37 / $533,654.14
Age 90	$669,644.65 / $734,026.26 / $760,209.01

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Break-Even Analysis

Cumulative Benefits by Claiming Age

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