Five Things to Know About Social Security

Social Security is your money — you earned it through a lifetime of hard work. And like most Americans, that money is needed to help cover living expenses and pay bills. More than one in nine District residents – 83,647 people – receive Social Security benefits, and 32 percent of residents 65 and older rely on the program for at least half of their income.

We know Social Security can be confusing, so it’s only natural to question how it works and how much money you’ve earned. When should I claim? When do I start collecting? How much will I get? 

Here are 5 things to know about Social Security.

1. When can I start collecting Social Security? 
You are eligible to receive Social Security as early as age 62. However, the longer you wait to start collecting after you become eligible (up until age 70), the larger your annual payments will be. For those who are eligible for survivor benefits or Social Security Disability Insurance (SSDI), you can start collecting earlier.

2. Can I collect Social Security while working?
Yes, you can collect payments while working. In fact, 26% of Social Security recipients in 2023 are still working. But your monthly payments will be temporarily reduced if you are below full retirement age (67) and earn more than a certain amount. Once you reach full retirement age, your payments will be increased to compensate for any previous benefits reduction caused by making more than the limit.

3. How much will I receive each year from Social Security? 
Your Social Security income will depend on multiple factors, but the most important is your lifetime earnings from work. The Social Security Administration takes your 35 highest-earnings years, calculates an inflation-adjusted average, and plugs this information into a formula to find your “basic” benefit. How old you are when you claim Social Security will also impact the amount you receive.

4. What is the maximum Social Security payment I can receive each month?
In 2023, the highest monthly payment for Social Security is $3,627; however, the average retirement benefit is $1,833. To receive the maximum payment, your earnings must exceed the maximum taxable income for at least 35 working years, and you must be at full retirement age, which is age 67 for people born in 1960 or later. 

5. How do I sign up for Social Security?
You can apply for retirement, spousal, or disability benefits online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. Find the local office closest to you at ssa.gov/locator. 

Have more questions? Visit AARP’s Social Security Resource Center (aarp.org/YouEarnedIt) to find answers. There you will find tools and resources, such as: 

• A calculator will help you determine how much money you will receive at various ages.
• Q&A tool to help you understand how significant life events, like divorce or losing a loved one, impact your Social Security.
• A place to email your elected officials about how important Social Security is to you and your family.

 You worked hard and paid into Social Security for your future. It’s your money. It’s only fair you get what you’ve earned.