15 Social Security Rules You Must Know Before You Claim Benefits

The great thing about Social Security is that it's designed to pay benefits consistently. By contrast, your savings aren't guaranteed to be there for you throughout retirement. That's why it's so important to know how Social Security works. Here are some rules you must commit to memory before signing up to take benefits.

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Social Security doesn't pay the same benefit to every senior. Rather, the monthly benefit you're eligible for will be based on your wages during your 35 highest-paid years of earnings. If you're nearing the end of your career without 35 years of income under your belt, you may want to work a bit longer to boost your monthly benefit.

Social Security won't pay you a benefit automatically. To qualify, you need to accrue enough work credits in your lifetime -- 40, to be specific. This year, a work credit is worth $1,510 of earnings, and you can collect four work credits a year at a maximum.

Social Security gives you a range of filing ages. But if you want to avoid a reduction in your monthly benefit, you'll need to wait until full retirement age to sign up. That age is 66, 67, or 66 and a specific number of months, depending on your year of birth.

ALSO READ: Is Social Security's Full Retirement Age the Same for Everyone?

The earliest age to sign up for Social Security is 62. If you go this route, though, you'll face the maximum reduction to your monthly benefit.

If you delay your Social Security filing past full retirement age, your monthly benefit will get an 8% boost for each year you hold off. If you're low on retirement savings, a higher Social Security benefit could help compensate.

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Medicare eligibility begins at age 65, which is before full retirement age. Therefore, you can enroll in Medicare even if you're not yet collecting Social Security benefits. And if you decide to claim Social Security before age 65, you can do so without signing up for Medicare.

ALSO READ: 3 Strategies to Make the Most of Medicare

Social Security doesn't prohibit you from collecting benefits plus a paycheck. But if your earnings exceed a certain limit, you may have some of your benefits withheld.

Full retirement age is when you're entitled to your full monthly Social Security benefit -- no questions asked. If you decide to keep working at that point, you can earn any amount of income without having to worry about it affecting your benefit payments.

Claiming benefits before full retirement age generally means limiting yourself to a lower monthly payment for life. Now you do get the option to undo your filing once in your lifetime. But to take advantage of it, you'll need to withdraw your Social Security benefits application within a year and repay every dollar in benefits you received.

ALSO READ: Before You Claim Social Security Early, Know These Rules

Delaying your Social Security filing past full retirement age could leave you with higher monthly payments for life. This incentive expires once you turn 70, though, so there's no sense in delaying your filing beyond that point.

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If you're married and never worked outside the home, you may still be eligible for Social Security spousal benefits. But you'll need to wait until your spouse files for benefits to claim your own.

Delaying your own Social Security benefit past full retirement age could give it a nice boost. But spousal benefits can't grow, so there's no sense in waiting to collect yours beyond full retirement age.

Social Security pays survivors benefits to widowed spouses. The higher a monthly benefit you lock in, the more monthly income you'll set your surviving spouse up for.

Social Security is taxed at the federal level once earnings exceed a certain threshold. If you have income outside of Social Security, you may end up having to pay some taxes on your benefits, even if your total income isn't very high.

ALSO READ: The Stealth Way Social Security Has Been Robbing Seniors of Their Benefits for Years

Social Security benefits are eligible for annual cost-of-living adjustments. But often, those raises don't do a good job of keeping up with inflation. Instead of counting on them, you may want to delay your filing for a higher benefit off the bat.

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Social Security could end up being an important retirement income source for you. Get familiar with these rules so you're able to maximize your benefits.

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