When to claim Social Security: the rules that shape the choice
Claiming is a choice between a smaller check for more years and a larger check for fewer years. No age is right for everyone, so we lay out the rules, the 2027 numbers and the tax effects.
Prepared by Prem Tax and Accounting Corp. Last reviewed November 6, 2026. Figures as of November 6, 2026.
When to claim Social Security means weighing a smaller check for more years against a larger check for fewer years. No age is right for everyone. We lay out the rules and use the Porch-Swing Claim Chat to talk them through. This is part of our retirement series.
- You can claim at 62. If your full retirement age is 67 (birth year 1960 or later), claiming at 62 cuts your benefit by 30 percent.
- Waiting past full retirement age adds 8 percent a year until 70.
- The 2027 cost-of-living increase is 3.6 percent, beginning in January 2027.
- At most 85 percent of benefits can be taxed. Public Law 119-21 did not change that. Illinois does not tax Social Security benefits.
Source: Social Security Administration
| Social Security number | 2026 | 2027 |
|---|---|---|
| Cost-of-living increase | 2.8% | 3.6% |
| Earnings limit before full retirement age | $24,480 | $25,560 |
| Earnings limit in the year you reach it | $65,160 | $67,920 |
An invented example
Nora is single. She claims $24,000 a year and takes $20,000 from an IRA. Half her benefits plus the IRA income is $32,000, above $25,000, so $3,500 of her benefits is taxable. With $10,000 more from the IRA, that total is $42,000 and $11,300 is taxable. The extra $10,000 added $17,800 to her taxable income: the $10,000 itself plus $7,800 of benefits.
The Porch-Swing Claim Chat
- Get each person's benefit estimate from the Social Security Administration.
- Talk through health, other income, work plans and your spouse.
- Remember that the survivor's benefit reflects the higher earner's claiming age.
- Plan Medicare sign-up at 65 even if you delay benefits. See our Medicare guide.
- Check how IRA withdrawals and Roth conversions change your taxable benefits.
Common questions
Did the new tax law end tax on Social Security?
No. Public Law 119-21 left the taxation rules alone. For 2025 through 2028, it added a separate $6,000 deduction for each person 65 or older, which phases out at higher income. See our [senior deduction guide](/current-topics/obbba/senior-tips-overtime-and-car-loan/).
Are benefits lost if I earn too much before full retirement age?
They are held back, not lost. At full retirement age Social Security recalculates your benefit to credit the held-back months.
Did the Social Security Fairness Act change my benefit?
It ended the Windfall Elimination Provision and the Government Pension Offset for benefits payable for January 2024 and later. It helps only people with pensions from jobs not covered by Social Security.
Official sources
- SSA: Starting your retirement benefits early
- SSA: Delayed retirement credits
- SSA: Receiving benefits while working
- SSA: 2027 cost-of-living adjustment fact sheet
- SSA: Survivor benefits, what you could get
- SSA: 20 CFR 404.313, delayed retirement credits and survivors
- IRS: Publication 915, Social Security and equivalent railroad retirement benefits
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