It's hard to believe that we're already past the midpoint of 2025. And there's a good chance the coming months will end up flying by, since life tends to work that way.
You may be gearing up for summer travel, fall relaxation, and a joyous holiday season. And in between, you may be planning to make a pretty significant financial move -- signing up for Social Security.
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That's an exciting thing. But as you probably know, the stakes are pretty high. So if you're planning to claim Social Security during the second half of the year, make sure to answer these critical questions first.
1. Have I gotten to full retirement age yet?
Full retirement age is when you're eligible for your monthly Social Security benefit without a reduction. If you were born in 1960 or later, it's 67.
However, you don't have to sign up for Social Security at full retirement age. Once you turn 62, you can claim benefits at any time. Not waiting until full retirement age, though, generally means accepting a reduced monthly benefit for life.
Is that a problem? Well, it depends on you and your income needs. But if you'll be claiming Social Security before full retirement age, make sure you can afford a permanent reduction to your monthly benefits.
And do keep in mind that according to the most recent report by the Social Security Trustees, a broad reduction in benefits could be on the table within the next decade. If you claim Social Security early and then sweeping benefit cuts arrive, you could be left with a lot less money than expected.
2. Am I done working?
You're allowed to work and collect Social Security at the same time. And once you reach full retirement age, you won't have to worry about earning too much and having some of your Social Security benefits withheld because of your wages.
However, you should know that if you're planning to claim Social Security early, you'll be subject to an earnings-test limit if you're still working. And exceeding it could mean having benefits withheld. So if you plan to continue working for the second half of the year, and you're not reaching full retirement age this year, you may want to hold off on Social Security a bit longer.
For context, this year's earnings-test limit is $23,400, or $62,160 if you'll reach full retirement age before 2025 ends. If you're not done working, compare your wages to these thresholds to make a more informed decision on whether to file for Social Security or not.
3. Have I talked through filing options with my spouse?
If you're single, the only person's financial needs you have to worry about in the context of Social Security are your own. But if you're married, it's important to talk through filing strategies with your spouse.
First of all, it may be that you and your spouse are both entitled to Social Security, in which case coordinating your claims is an important thing to do. But if you're the only one in your household who's eligible for Social Security, you'll have to take your spouse's financial needs into account.
If you think, for example, that your spouse will outlive you for many years, that's reason enough to claim Social Security on the later side for larger benefits. For each year you delay your claim past full retirement age, up until age 70, your benefits grow 8%. That could leave your spouse with a more generous survivor benefit.
Filing for Social Security may be on your list of things to do during the second half of 2025. But make sure to think things through carefully before moving forward with that decision.
