Sabrina
Millions of Americans approaching retirement often find the Social Security process confusing—when to start benefits, how they’re determined, and whether working affects eligibility.
Thankfully, Dr. Ed, a former Social Security Administration expert now guiding people on YouTube, is demystifying these topics with straightforward answers. Here’s a comprehensive breakdown of what you need to know in 2025.
When Is the Right Time to Claim Social Security Retirement Benefits?
One of the most pressing questions among future retirees is: “When should I begin collecting Social Security?”
- You can start collecting as early as age 62, but that comes with a reduced monthly payment.
- Waiting until full retirement age (FRA) or delaying until age 70 significantly increases your monthly benefit thanks to delayed retirement credits.
- There’s no “one-size-fits-all” answer. Factors like health, financial needs, and life expectancy should guide your decision.
How Your Social Security Benefits Are Calculated in 2025
Contrary to the common myth, your Social Security benefits aren’t calculated based on your most recent earnings. Instead, the Social Security Administration (SSA) uses your 35 highest-earning years, adjusted for inflation.
2025 Social Security Benefit Formula
| Earnings Bracket | Percentage Used |
|---|---|
| First $1,226 of AIME | 90% |
| $1,226 to $7,391 | 32% |
| Over $7,391 | 15% |
- Your Average Indexed Monthly Earnings (AIME) is used to calculate your Primary Insurance Amount (PIA)—the monthly benefit you receive if you retire at FRA.
Can You Cancel or Adjust Your Claim After Filing?
Yes, you can. If you change your mind within 12 months of first claiming, you may withdraw your application—but you must repay all benefits received during that period.
Additionally, once you’ve reached full retirement age, you can choose to suspend your benefits voluntarily. This lets you earn delayed retirement credits at a rate of 8% per year until you turn 70, boosting your future payments.
What If You Work While Receiving Social Security?
Working while claiming Social Security benefits is allowed, but it may impact your benefit amount if you’re under full retirement age.
- In 2025, the earnings limit is $23,400.
- If your earnings exceed that, $1 will be deducted from your benefits for every $2 earned above the threshold.
- Once you reach full retirement age, you can earn unlimited income without affecting your benefits.
Can You Still Receive Social Security If You Move Abroad?
Yes, U.S. citizens can continue receiving benefits while living overseas, except in restricted countries like North Korea or Cuba.
Dr. Ed emphasizes the importance of updating your mailing and banking details with the SSA. Don’t close your U.S. bank account until your international payments are verified, as foreign wire transfers can sometimes fail.
Bonus Tips: Benefits for Divorced Spouses, Survivors, and Children
There are several lesser-known benefits that apply to specific family situations:
- Divorced spouses can receive benefits if the marriage lasted 10+ years and they’re currently unmarried.
- Survivor benefits begin as early as age 60, or age 50 if disabled, and range from 71.5% to 100% of the deceased partner’s benefit.
- Stepchildren and disabled adult children (DACs) may qualify for dependents’ benefits, provided eligibility requirements are met.
Understanding Social Security in 2025 doesn’t have to be overwhelming. With the help of experts like Dr. Ed and the latest program updates, Americans nearing retirement can make informed decisions to maximize their benefits.
Strategic planning ensures you avoid common mistakes and fully benefit from the system you’ve paid into.
FAQs
What happens if I claim Social Security early but keep working?
If you’re under full retirement age and earn more than $23,400 in 2025, your benefits will be reduced temporarily. Once you reach FRA, reductions stop.
Can I stop my Social Security benefits after I’ve already started them?
Yes, within the first 12 months of claiming, you can withdraw your application—but you’ll need to repay all benefits received.
Will my overseas residence impact my benefits?
Not in most countries. However, you must keep your SSA information updated. Payments can be interrupted if you live in restricted countries or fail to manage your U.S. account properly.