Navigating Social Security goes beyond picking a date to file, it’s about making informed choices that support your entire retirement plan. Whether you’re married, divorced, widowed, or raising kids, here are five essential things to know before claiming benefits.
1. Your Children Could Receive Benefits Too
Social Security isn’t limited to retirees, it can also help support your family. If you're eligible for benefits, your children might be as well, especially in these cases:
- Kids under age 18 qualify automatically.
- Students still in high school may be eligible up to age 19.
- Unmarried children with a disability that began before age 22 could receive benefits.
- If you're caring for a child under 16, caregiver benefits may also apply.
These lesser-known benefits can be a critical source of support for families, particularly those with dependents who have special needs or later-in-life children.
2. Divorced? You Might Still Be Entitled to Spousal Benefits
If your previous marriage lasted at least a decade and you haven’t remarried, you could claim Social Security benefits based on your ex-spouse’s record. Requirements include:
- Being at least 62 years old.
- Either your ex is currently receiving benefits, or you’ve been divorced for at least two years.
This strategy doesn't reduce your ex-spouse’s benefit and could provide valuable additional income.
3. Taking Retroactive Benefits Could Lower Your Long-Term Income
After reaching your full retirement age (FRA), you may qualify to collect retroactive benefits for up to six months. But accepting them comes at a cost:
- You lose delayed retirement credits—about 4% for six months.
- This permanently reduces your monthly payout.
While retroactive benefits can be helpful in specific situations (e.g., terminal illness), they often result in a net loss for those expecting a longer retirement.
4. Coordinating Social Security with Medicare Is Crucial
When you file for Social Security, you’re automatically enrolled in Medicare Part A at age 65. But timing is everything:
- If you’re not working and don’t have qualifying employer coverage, you must sign up for Medicare to avoid penalties.
- Higher-income individuals may face IRMAA surcharges, which raise Medicare premiums.
Coordinating your retirement and healthcare plans can help you avoid gaps in coverage and extra costs.
5. Working While Receiving Benefits? Know the Earnings Limits
Planning to work while collecting Social Security before FRA? Watch out for the earnings test:
- In 2025, you can earn up to $22,400 without a reduction.
- The limit rises to $62,160 in the year you reach FRA—applied only to months before your birthday.
- After FRA, your earnings don’t affect your benefit.
Make sure your work-and-collect strategy won’t unexpectedly shrink your checks.