Is 2025 Your Year to Claim Social Security? Ask These Questions to Find Out

Key Points

• Your filing age will have an effect on the amount of Social Security you get each month.

• Before claiming benefits, figure out if you're old enough to avoid a reduction.

• Assess your work situation and savings to make the right call.

• The $23,760 Social Security bonus most retirees completely overlook ›

There's a reason so many people find the idea of choosing a Social Security filing age stressful. Your filing age could have a huge effect on the amount of money you receive each month.

You may be thinking of claiming Social Security before 2025 comes to an end. But before you do, make a point of running through these important questions.

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1. Have I reached my full retirement age?

The nice thing about Social Security is that benefits become available starting at age 62. But if you want your monthly benefit without a reduction, you'll need to wait until full retirement age to sign up.

Full retirement age is 67 for people born in 1960 or later. But even if you claim Social Security just a month ahead of full retirement age, you'll be looking at a reduced monthly check for life. That's a hit you may not be able to afford, depending on what other income sources you have.

2. Am I still working?

You may be thinking of claiming Social Security this year because you're retiring from your job. Or, it may be that you're planning to sign up for benefits simply because you're finally old enough to do so.

You're allowed to collect Social Security even if you're continuing to work. But if you sign up for benefits before full retirement age, you'll be subject to an earnings limit. Exceeding it could result in having benefits withheld.

In 2025, you can earn up to $23,400 a year without risking withholding of your Social Security benefits. Beyond that cap, you could have $1 in Social Security withheld per $2 of earnings.

That threshold is higher if you'll be reaching full retirement age before the end of the year. In that case, you can earn up to $62,160 before having benefits withheld. From there, you'll have $1 in Social Security withheld per $3 of earnings.

If you're earning enough from a job that you can cover your expenses, and you won't reach full retirement age before the end of the year, then it may not make sense to sign up for benefits. Not only will you reduce them by virtue of claiming early, but on top of that, you may have a large portion withheld anyway.

3. Am I pleased with the amount of money I've saved?

In 2024, the average 401(k) plan balance for savers 65 and over was $299,442, according to Vanguard. Your nest egg may be a lot larger. Or it may be a lot smaller.

It's important to assess your savings before signing up for Social Security. If it turns out you didn't quite meet your IRA or 401(k) goal, then you may want to delay Social Security past full retirement age for boosted monthly checks for life.

Of course, if you have a large amount of savings, you may decide you'll claim Social Security now and enjoy the money while using your nest egg to cover your essential bills. There's absolutely nothing wrong with that approach. But it's important to first reconcile how you feel you've done savings-wise.

Claiming Social Security before the end of the year could be a smart decision for you. But address these questions first, so you can feel more confident should you decide to go that route.

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