If you’re working in the U.S. and planning for retirement, it’s important to understand how Social Security benefits work. While many assume that all workers will automatically qualify, there are some key rules and requirements that can affect how much you receive and when you can start collecting payments.
In 2025, Social Security continues to follow its core structure, but certain details like the age at which you file and how long you’ve worked in covered jobs can make a major difference. From earning work credits to dealing with inflation and COLAs, here’s what every worker should know.
Who Qualifies for Social Security Benefits in 2025?
One of the most common misunderstandings about Social Security is the idea that anyone who’s worked in the U.S. automatically qualifies for retirement payments. That’s not always true. To receive benefits, your job must have been covered by the Social Security Administration, meaning you paid Social Security taxes through payroll deductions during your working years.
To qualify, you need to have worked at least ten years in jobs covered by the SSA. These years translate into work credits—up to four per year. In total, you need 40 credits to meet the minimum eligibility. This usually equals ten years of consistent work, although exact timelines vary depending on your income during those years.
What Happens If You File at Age 62?
While it’s possible to start collecting Social Security as early as 62, doing so comes with a trade-off. At this age, your monthly benefit will be permanently reduced compared to what you’d get if you waited until your Full Retirement Age (FRA). For anyone born in 1960 or later, FRA is 67. Filing before this age will shrink your monthly payments because you’re drawing benefits for a longer period.
Many workers don’t realize how big the difference can be. Filing early might offer quicker access to funds, but it also locks you into a lower monthly amount for life, which may impact your financial comfort in later years.
The Benefits of Waiting Until 70
For those who can afford to wait, there’s a clear benefit to holding off on filing until the age of 70. Delaying your claim beyond FRA adds around 8% more to your payment for each year you wait, up to age 70. That adds up to about a 24% increase if you delay from 67 to 70. This extra amount can make a big difference, especially as expenses rise over time.
Some workers worry they’ll miss out on cost-of-living increases (COLAs) if they delay their claim, but that’s not true. COLAs are added to benefits regardless of whether you’ve started collecting them. These adjustments are usually announced once a year and go into effect in January—or December 31 for those receiving SSI.
How COLAs and Inflation Impact Benefits
Cost-of-Living Adjustments help Social Security payments keep up with inflation. However, these increases aren’t always guaranteed. Some years, the adjustment might be small or even nonexistent, depending on economic conditions. COLAs are helpful, but they can’t always keep up with the rising cost of everyday expenses.
Inflation continues to be a concern for retirees. Over time, even with annual COLAs, your benefits may not stretch as far as they used to. Planning ahead and understanding how inflation affects purchasing power can help you avoid financial strain down the road.
