Deciding when to collect Social Security (SS) retirement benefits can be difficult. Below are the top questions and answers to help you make your decision, including information on recent legislative changes such as the Social Security Fairness Act of 2025.
Important Acronyms
Federal Insurance Contributions Act (FICA) Tax — A payroll tax imposed by the federal government on both employees and employers to fund Social Security and Medicare.
Full Retirement Age (FRA) — Also called “Normal Retirement Age” (NRA) — The age at which you are entitled to your entire primary insurance amount. Varies between age 65 and age 67 depending on the year in which you were born.
Government Pension Offset (GPO) — A reduction to the spousal and/or survivor benefits of individuals who receive a pension from a federal, state or local government based on work where FICA tax was not withheld. Social Security benefits will be reduced by two-thirds of the monthly government pension.
Primary Insurance Amount (PIA) — The full monthly Social Security retirement benefit to which you become entitled at FRA. All benefits based on your earnings record (including spousal and survivor benefits) are based on your PIA.
The Social Security Fairness Act was signed into law on January 5, 2025, repealing both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions no longer apply to benefits payable from January 2024 onward.
See the “Impacts on Pensions” section below for details.
Frequently Asked Questions
What happens if I retire at age 60 but do not start collecting until full retirement age (FRA)?
Since your benefits will be based on your best 35 years of employment and the estimate assumes your current earnings will continue through FRA, the benefits you receive could be lower than the amount reflected on your statement. A more accurate estimate may be calculated by using the Retirement Estimator on the Social Security Administration’s (SSA) website at www.ssa.gov.
What will happen to my benefits if I collect but continue to work beyond FRA?
The SSA will automatically recalculate your benefits each year you continue to work. If your current income is greater than one of your previously calculated “best 35 years,” your benefits will be automatically adjusted upward. The increase generally will be made in October of the following year but will be retroactive to January 1st.
Will my SS benefits be taxable?
The answer depends on your overall income. The amount of your benefit that is taxable can range from 0%–85%.
Will unemployment affect my SS benefits?
SS does not count unemployment benefits as earnings. They do not affect retirement benefits, but income from SS may reduce your unemployment compensation. Contact your state unemployment office for information on how your state applies the reduction.
Can I start collecting benefits and change my mind?
Yes. If you start collecting benefits and change your mind, you can file a “Request for Withdrawal of Application” form with the SSA. If the request is granted, you need to repay the SSA all of the payments, including those received by any family member(s), that have been collected based on your work history. You can subsequently refile. The SSA restricts withdrawals to within 12 months of filing for benefits and will only allow one withdrawal per lifetime.
Am I eligible for any benefits if I have never worked?
You may be eligible to collect spousal or survivor benefits from your spouse or ex-spouse even if you have never worked or have not worked enough to qualify for your own retirement benefits.
How far in advance can I apply for benefits?
You can apply up to four months before you want your benefits to start. However, if you want to begin your benefits at age 62, you have to wait until you are at least 61 years and 9 months.
If I am already collecting SS benefits, do I still need to pay the SS payroll tax?
Yes. Everyone working in covered employment or self-employment regardless of age or eligibility for benefits must pay the SS payroll tax (FICA). However, there are a few exceptions, such as an individual who qualifies for a religious exemption.
Impacts on Pensions
As of January 5, 2025, the Social Security Fairness Act repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions no longer reduce Social Security benefits for individuals who receive pensions from employment not covered by Social Security. The repeal is effective for benefits payable from January 2024 forward, and over 3.1 million affected beneficiaries have received retroactive payments totaling more than $17 billion.
If I worked in jobs that paid FICA tax as well as jobs that paid into a civil retirement system that did not pay FICA tax, will my pension affect my SS benefits?
No — not under current law. Prior to January 2024, your Primary Insurance Amount (PIA) could have been reduced through the Windfall Elimination Provision (WEP). The Social Security Fairness Act repealed the WEP, effective January 2024. If your benefits were previously reduced by the WEP, the SSA has automatically recalculated your benefit amount, and you may have received a retroactive lump-sum payment. Contact the SSA at 1-800-772-1213 or visit www.ssa.gov if you believe you are owed an adjustment.
Am I able to collect spousal or survivor benefits if I have earned a pension from non-covered employment? Yes — under current law, a pension from non-covered employment no longer reduces your spousal or survivor benefits. Prior to January 2024, the Government Pension Offset (GPO) reduced these benefits by two-thirds of your monthly pension amount. The Social Security Fairness Act repealed the GPO. Affected individuals may have already received increased monthly benefits and retroactive payments. If you have not yet seen a change and believe you are eligible, contact the SSA directly.
If I start collecting prior to FRA, will my benefits be adjusted when I reach FRA?
No. Reductions due to collecting early are permanent.
What if I start collecting benefits but return to work prior to FRA?
Based on the wages you earn each year, part or all of your benefits may be withheld. If you would prefer to keep the benefits from being withheld, you may elect to complete a “Request for Withdrawal of Application” form. The earning test applies.
What would those exempt amounts be?
Determined using procedures defined in the Social Security Act.
For people attaining FRA after 2026, the annual exempt amount in 2026 is $24,480.
For people attaining FRA in 2026, the annual exempt amount is $65,160. This higher exempt amount applies only to earnings made in months prior to the month of FRA attainment.
Will I get back what the SSA withheld when I reach FRA?
No. Any amount withheld is lost. However, the SSA will increase your benefit at FRA by adjusting your reduction percentage to account for the withheld benefits.
Family Benefits
If my spouse collects benefits early, does that reduce my spousal benefits?
No. Spousal benefits are based on your spouse’s FRA benefit and when you collect spousal benefits. When your spouse collects will not affect the amount of your spousal benefits.
Can I collect spousal benefits from my younger spouse’s earnings history?
Yes, provided your spouse has filed for benefits.
Do spousal benefits continue to increase beyond FRA like individual benefits do?
No. Spousal benefits do not receive delayed retirement credits. Therefore, they are at their highest at FRA.
Do I need to wait until FRA to begin collecting spousal benefits?
No. Age-reduced spousal benefits could be available as early as age 62. Additionally, if you are caring for a child under age 16 (or any age if disabled before age 22), you are eligible for spousal benefits even if you have not yet achieved retirement age. If you are currently working, your benefits may be subject to withholding based on your wages.
Can my child receive benefits?
Yes. Children under age 18, age 19 if still in high school, or any age if disabled before age 22, can collect retirement benefits when you file for benefits.
If I am working and under FRA, can I collect survivor benefits?
Yes, but any type of retirement benefit collected prior to FRA may be subject to withholding based on your wages.
If I am collecting survivor benefits and remarry, do I lose the survivor benefits?
No.
How old must I be to collect survivor benefits?
Survivor benefits can be collected as young as age 60, but this may result in a reduction of up to 28.5%.
Divorced Benefits
Do I have to be unmarried at the time to collect spousal benefits on my ex-spouse’s work history?
Yes. You must be unmarried when you apply for spousal benefits based on an ex-spouse’s work history.
If I have been divorced twice, can I collect spousal benefits on both ex-spouses’ work histories?
No. You are entitled to collect on only one record, but the SSA will pay the highest benefit.
Changes to Social Security
Social Security Fairness Act (2025)
The Social Security Fairness Act was signed into law on January 5, 2025, and represents the most significant expansion of Social Security benefits in decades. The Act repealed both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), effective for benefits payable from January 2024 forward.
The SSA began issuing adjusted monthly payments and retroactive lump-sum payments to affected beneficiaries in early 2025. As of mid-2025, over 3.1 million payments totaling more than $17 billion had been distributed ahead of schedule. Affected individuals do not generally need to take action — the SSA has been recalculating benefits automatically.
If you believe your benefits were affected by the WEP or GPO and you have not yet received a corrected benefit statement or retroactive payment, contact the SSA at 1-800-772-1213 or log in to your account at www.ssa.gov to verify your updated benefit amount.
Voluntary Suspension (effective April 30, 2016)
What is Voluntary Suspension?
Voluntary Suspension allows individuals to file for benefits but suspend taking them. Under prior rules (before April 30, 2016), eligible spouses and dependents were able to collect benefits during the suspension while the individual’s benefits continued to earn the 8% annual increase.
What changed with Voluntary Suspension after April 30, 2016?
The following changes are now in effect:
1. During suspension, any spousal or child benefit is also turned off. The filer must begin collecting benefits again in order for others to collect off of their record.
2. You can no longer request retroactive payments of those suspended benefits.
3. The filer is not able to claim any other benefit while their benefit is suspended.
Can I still suspend my benefit?
Yes. A common use case would be an individual who chose to collect retirement benefits early and, at or after FRA, decides that they would rather earn the 8% annual increase instead of continuing to receive the monthly check. However, the ability for others to receive spousal or dependent benefits during the suspension period is no longer possible.
Are survivor benefits impacted by the 2016 changes?
No. Survivor benefits were not affected by the 2016 Voluntary Suspension changes.
Social Security decisions are rarely one-size-fits-all. The right strategy for you depends on a wide range of personal factors: your health, your spouse’s benefit history, your retirement timeline, pension income, and more. Understanding your options in the context of your specific situation can make a meaningful difference in the income you receive over your lifetime.
At Shepherd Financial Partners, we are always happy to sit down with you, talk through your circumstances, and help you make the most of what you’ve earned.
As always, please reach out to your advisor at Shepherd Financial Partners with any questions!
Disclosure:
Source: Social Security Administration
Investment advice offered through Shepherd Financial Partners, LLC, a registered investment advisor. Securities offered through LPL Financial, member FINRA/SIPC. Shepherd Financial Partners and LPL Financial are separate entities.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.
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