When the Social Security Program was signed into law in 1935, it was meant to add a small supplement to retirement income. Today, however, Social Security represents a large percentage of a retiree’s portfolio. Understanding how Social Security benefits work, what benefits you’re entitled to, and the best strategies for filing are essential to retirement planning. Here are the five most common questions we’re asked about Social Security and our tips for navigating benefits:
1. What has changed in 2025, and how will it impact me?
The first half of 2025 has brought significant changes to the Social Security Administration (SSA), most notably to shifts in the staffing and organization of the SSA, as well as changes to the rules related to benefit reductions from pension income. The Trump administration has pushed to try and modernize the operations of the SSA through the reduction of local SSA offices, moving toward having most services done through the SSA website. As a best practice, you’re highly encouraged to create a “My Social Security” account even if you aren’t close to retirement age. Not only are you able to confirm that your annual earnings are being accurately applied to your earnings record, but when the time comes to ultimately file for benefits, you’ll already have a login and profile established to be able to access the application easily.
In January 2025, former President Biden signed into law the “Social Security Fairness Act,” which repealed the “Windfall Elimination Provision (WEP)” and “Government Pension Offset (GPO).” These provisions previously reduced benefits for those who earned a pension through a noncovered employer. The repeal of the WEP and GPO means that those who have income from both covered and noncovered employers can now collect their full benefit amounts in addition to their pension. Most notably, spouses/survivors will no longer have reduced benefits through the GPO, which, based on their pension amount, could have reduced their Social Security benefit to $0. December 2023 was the last month that WEP and GPO applied, meaning beneficiaries can expect to see both an increase in their monthly benefit amount as well as a lump-sum payment for benefits reduced going back to January 2024.
2. Can I file for Social Security and still work?
Most full-time employment prevents you from collecting some, if not all, of your monthly Social Security benefit, although this depends on your age. If you’re collecting benefits and you’re between age 62 and your full retirement age (FRA), you’re subject to the “earned income test.” Earned income, in this case, includes wages subject to FICA tax, non-FICA wages, or net self-employment income. Income from investments, rental properties, deferred compensation, unemployment compensation, etc., has no impact on the earned income test. Between 62 and the year prior to your FRA, $1 of benefits is withheld for every $2 of earnings over $23,400 (2025). In the year of your FRA, $1 of benefits is withheld for every $3 of earnings over $62,160 (2025). Once you’re past your FRA, earned income doesn’t impact your Social Security benefits. But benefits that aren’t paid because of the earned income test aren’t lost forever — at your FRA, your monthly benefit is permanently increased for the months that benefits weren’t originally paid.
3. What if I file for Social Security benefits early and later regret my decision?
If you file for Social Security benefits but soon realize you should have waited, you have two options to remedy the situation. The first is a “do-over.” This involves filing Form 521 with the SSA within 12 months of applying. With this option, you’re required to pay back any benefits that you, your spouse, or your children have collected.
Alternately, if paying back the collected benefits would create a financial hardship, you have the option to simply suspend benefits from that point forward, essentially pressing “pause” on your Social Security benefit (as long as you’ve reached your FRA).
Either of these options allows you to delay your filing until you reach your FRA or even later, when you can earn extra benefits. However, be aware that both of these options impact spousal and/or dependent benefits and Medicare premiums. If you choose a “do-over” or elect to suspend your benefits, individuals who are collecting on your record (e.g., spouse, children) can no longer do so, and you can no longer have your Medicare Part B and D premiums deducted from your benefit.
4. What are the Social Security benefits for surviving spouses and children?
In the wake of the loss of a loved one, applying for Social Security is likely not a top concern. But benefits for the surviving spouse and their children provide unique opportunities that require different filing strategies. Widow or spousal benefits have other filing rules than those for typical retirement benefits. For one, surviving spouses are entitled to pick which benefit to take and when. Because filing for widow benefits isn’t included in Social Security “deemed filing” rules, surviving spouses can choose to take either their own retirement benefit or the widow benefit and delay the other to let it grow.
Additionally, minor children can collect benefits up to 75% of the deceased parent’s benefit. Understanding the details of how to file for widow and children’s benefits is a valuable way to ensure you maximize you and your family’s lifetime benefits.
5. Will there be any Social Security left when I retire?
In 2021, the total costs of the Social Security program exceeded income into the Old-Age and Survivors Insurance trust fund that supplies it. The same shortfall has persisted each year since then and this pattern will likely continue in future years until the trust fund is depleted.
What does this mean for those who are still paying FICA taxes but won’t file to receive benefits for several years? Per the 2024 Trustees Report, full benefits will be able to be paid until 2033, at which point FICA tax income paid into the fund will be sufficient to pay 79% of scheduled benefits. Unless Congress passes legislation, it’s likely that future benefits will be paid at a reduced rate.
Social Security benefits have changed a lot since they were first put in place almost a century ago, and they’ll continue to evolve. It’s more important than ever to create a plan for you and your family’s benefits. Working with your financial advisor and running projections can help maximize your lifetime benefits and your financial independence.
