Planning Your Retirement: Key Factors

Deciding when to retire is a personal choice based on your health, finances, and family needs. Here are the four pillars of the Social Security retirement plan:

1. Timing Your Application (Age 62–70)

• You can apply for monthly benefits as early as age 62, but your payment amount is based on your lifetime earnings and the age you start.

• Early (62–Full Retirement Age): Smaller monthly payments, but received over a longer period.

• Delayed (Up to age 70): Your monthly benefit increases every year you wait beyond your full retirement age.

• To access your Medicare and Social Security information online, you must use a my Social Security account. As of 2025, the Social Security Administration (SSA) has transitioned to a more secure login system. Click here for instructions.

2. Healthcare and Medicare

• If you enroll in Medicare Part B (medical insurance), your monthly premiums are typically deducted directly from your Social Security benefit. It is essential to coordinate your Medicare enrollment with your retirement timeline to avoid gaps in coverage or late-enrollment penalties.

3. Taxes on Benefits

• Social Security benefits may be considered taxable income depending on your total "combined income." You have two choices for handling this:

  • • • • Pay the IRS directly when you file your annual taxes.

        • Request voluntary tax withholding so that federal taxes are taken out of your benefit check automatically.

4. Working While Receiving Benefits

• You can work and receive benefits at the same time, but your age matters:

  • • • • Before Full Retirement Age: If your earnings exceed an annual limit, a portion of your benefits will be temporarily withheld. Once you reach full retirement age, your monthly amount is increased to "make up" for those withheld payments.

        • After Full Retirement Age: There is no limit on your earnings. You can work as much as you like without any reduction in your benefits.

        • The table below shows how your monthly benefit changes based on when you choose to start, using an example of a $2,000 monthly benefit at age 67.