10 things workers should know about Social Security payments in the United States in 2025

Contrary to popular belief, not all Americans qualify for Social Security payments because they must meet certain essential requirements. Even if you have worked for decades, it is necessary to have worked in jobs covered by the Administration. That implies you paid payroll taxes as you worked. Of course, the second thing you should take into account is the fact that there is a minimum number of years you must have worked in jobs covered by the SSA.

For example, to be able to collect a Social Security payment at the age of 62, you must have worked for a minimum of ten years. Remember that you must have earned at least 40 work credits. Another interesting fact many people do not know is that they can only collect up to 4 work credits per year, so that makes a total of 40 in ten years.

62 is the earliest you can get Social Security retirement benefits

If you have earned 40 work credits at the age of 62 or more, you could file for retirement benefit payments because you meet the minimum requirements. However, early filing has some important disadvantages that many workers ignore.

Workers who choose to file for Social Security at the age of 62 should know that their monthly payment will be reduced. This is because the only age to get 100% of your monthly payment is at Full Retirement Age.

For example, if you were born from 1960 onward, your Full Retirement Age is 67. That means you will have to file for retirement benefits at the age of 67 if born in 1960 or later to get 100% of your payment.

Social Security rewards late filing

Workers who prefer to keep working until they are 70 years old will receive 24% extra per month. This is because the SSA rewards those who carry on working after reaching Full Retirement Age.

Some people may fear that they may lose a big COLA (Cost-of-Living Adjustment) increase if they do not file, but COLAs are also applied to those who do not file.

Another important thing to take into account is that COLA increases only come once per year, often in January or December 31 for SSI beneficiaries. What is more, COLAs tend to be a boost, but it may also mean getting a reduction or no increase at all. That is, there could be no changes, and you continue receiving the same Social Security payment amount.

Inflation reduced your purchasing power. This is a factor that many retirees do not take into account. If you overlook inflation, you may run out of money after having been collecting Social Security for many years.