Key Points

• The One Big, Beautiful Bill (OBBB) added a new $6,000 senior tax deduction.

• This will help many -- but not all -- seniors on Social Security save money on taxes.

• It's a far cry from the savings that would come from actually ending Social Security benefit taxes.

• The $23,760 Social Security bonus most retirees completely overlook ›

"Promises made, promises kept." That's how a recent White House article celebrated the One Big, Beautiful Bill's (OBBB) new senior tax deduction, set to take effect for the 2025 tax year. The Trump administration has claimed that, as a result of this change, 88% of seniors on Social Security won't owe any taxes on their Social Security benefits -- a follow-through on one of President Donald Trump's biggest campaign promises.

It certainly sounds compelling, but as someone who's been writing about Social Security for years, it only took me one look at the data to realize that the OBBB change was far from an end to benefit taxes. The new deduction will help many seniors to a degree, but you need to understand what it is -- and isn't -- to know what kind of a difference it will make for you.

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How the OBBB senior tax deduction works

The OBBB added a new $6,000 tax deduction for seniors 65 and older ($12,000 for married couples). This is on top of the standard deduction for their filing status, which the law also increased from $15,000 to $15,750 for single adults and from $30,000 to $31,500 for married couples, and the existing senior tax deduction ($2,000 for an individual or $1,600 per qualifying individual for a married couple).

Tax deductions reduce the portion of your income you have to pay taxes on. For example, if you earned $50,000 this year and qualified for $15,000 in tax deductions, you'd only owe taxes on the remaining $35,000. So the OBBB change is definitely useful. It means you'll owe taxes on less money than you did before.

That said, not everyone will be able to take advantage of this new deduction. Single adults with incomes over $75,000 and married couples with incomes over $150,000 will see their deduction decrease by $60 for every $1,000 by which their income exceeds these thresholds. Single adults with incomes greater than $175,000 and married couples with incomes exceeding $250,000 won't be able to claim the new deduction at all.

So far, we can already see two key differences between the OBBB senior deduction and Trump's promise to end benefit taxes. Seniors under 65 receive no benefit from the OBBB deduction, even if they're on Social Security, and high earners who would have benefited from ending benefit taxes will experience no gains from this new change. But there's another big distinction to be made between Trump's promise and what he delivered.

The tax savings fall far short of what Trump promised

The OBBB senior tax deduction will give the average senior about $670 more in after-tax income, according to a Council for Economic Advisors report. But that's a far cry from the gains that would come from ending the benefit taxes that are still on the books, even after the OBBB's passing.

Let's look at the example of a single 65-year-old who takes $50,000 from a 401(k) in 2025 and has annual Social Security benefits of $24,000. The government decides what percentage of your Social Security benefits to tax by looking at your provisional income -- your adjusted gross income (AGI), plus any nontaxable interest from municipal bonds, and half your annual Social Security benefit. In this case, that's $62,000.

Then, it compares this amount to the following chart.

Data source: Social Security Administration.

Under Social Security benefit tax rules, 85% of their benefits would be taxable and get added to their AGI, bringing it to $70,400. So what does this mean for their taxes?

The following table outlines this person's tax bill under pre-OBBB law, with the new OBBB standard and senior deductions in place, and in a scenario where the OBBB hadn't passed and benefit taxes were eliminated instead.

Source: Author's calculations.

In this example, the OBBB senior deduction and the increase to the standard deduction for all single filers would result in $1,302.50 in tax savings. However, eliminating Social Security benefit taxes would've saved $2,940.50 in taxes, even without the new deductions in place.

So the Council of Economic Advisors' claim that 88% of seniors on Social Security won't pay any benefit taxes isn't accurate. The report says this is a result of "their total deductions exceeding their taxable Social Security benefits." But if we follow this logic, we could say that single filers who had $16,550 or less in taxable Social Security benefits in 2024 (equal to the $14,600 standard deduction for single filers plus the $1,950 senior deduction that year) didn't pay taxes on their Social Security benefits, when we know that's not true. If you have taxable Social Security benefits, you are paying taxes on them.

The OBBB didn't do anything to change how benefit taxation works. An increasing number of seniors will encounter this tax as average benefits and living costs continue to rise. The OBBB's new senior deduction may provide a bit of relief, but it's a small gain compared to Trump's initial promise.

It's also, for the moment, a limited-time offer. The law says it only applies until the 2028 tax year. Congress will have to decide whether to extend it for future years.

Whether the government will actually end benefit taxes remains an open question. Many seniors want it to do so, but with Social Security facing insolvency, the program could really use the benefit tax revenue right now. However, if Congress makes broader changes to the program in the next few years to keep it sustainable for future generations, talk of ending benefit taxes may resurface.

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Key Points

• Claiming early reduces your own retirement benefit, but it will not affect your partner's spousal benefit.

• If your partner claims early, that can reduce their spousal benefit by up to 35%.

• Claiming early can reduce the survivor benefit your partner is entitled to after you die.

• The $23,760 Social Security bonus most retirees completely overlook ›

You're nearing 62 and you're chomping at the bit to sign up for Social Security. You're ready to get back some of the money you've put into the program, and you want as many checks as possible. There's just one thing holding you back.

You're married, and you don't want your decision to hurt the spousal benefit your partner qualifies for. It's a natural thing to worry about, since claiming early can reduce the size of your own retirement benefit by up to 30%. You're right in thinking that your choices affect your spouse's benefits, but they may not do so in the way you expect.

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How spousal Social Security benefits work

To qualify for a spousal benefit, you must be married to a qualifying worker -- that is, one who has worked long enough to earn 40 credits. One credit is defined as $1,810 in earnings in 2025, and you can earn up to four credits per year. There's generally a one-year length of marriage rule, though that's waived if you were already eligible for Social Security in the month before the month you got married, or if you're the parent of your spouse's child.

A spousal benefit is worth up to one-half of the retirement benefit the worker qualifies for at their full retirement age (FRA). Your FRA depends on your birth year, but it's 67 for most adults today. As mentioned above, if you claim retirement benefits early, you could shrink your checks up to 30%. But your claiming age has no bearing on the size of your partner's spousal benefit.

Your spouse's claiming age does matter, though. To qualify for the maximum spousal benefit, they must wait until they reach their own FRA to apply. Claiming early reduces their checks by 25/36 of 1% per month for up to 36 months, and then by 5/12 of 1% per month thereafter. That can drop their checks by 35%.

If a retired worker qualifies for a $2,000 monthly benefit at their FRA, that means their partner's maximum spousal benefit is $1,000 at their own FRA. If the spouse claims immediately at 62, they would only get $650 per check if their FRA is 67. This reduction is permanent.

It's worth pointing out that your partner may not get a spousal benefit even if they qualify for one. When their own retirement benefit is larger than their spousal benefit, the government pays them the retirement benefit instead. You cannot claim both benefits at once.

How your Social Security decisions affect your spouse

While your choice to claim Social Security early may not directly harm your partner's spousal benefit, it will affect them in a few ways. First, it allows them to apply for spousal benefits earlier. They must wait until you apply for Social Security before they can claim a spousal benefit.

Second, claiming early reduces the survivor benefit your partner qualifies for after you pass away. For this reason, some people choose to delay Social Security, or avoid claiming altogether if they're in poor health and believe their spouse will be heavily dependent upon Social Security to make ends meet.

But ultimately, when you sign up for Social Security is a personal decision, one that's best talked through with your spouse. When you work together, you can coordinate your claiming strategy to take home the largest household benefits.

Sometimes, this involves the lower-earning spouse claiming their own retirement benefit, assuming they qualify for one, early. This helps the higher-earning spouse to delay benefits until their FRA or even later. You continue to grow your checks for every month you delay benefits until you turn 70. Then, when the higher earner applies for benefits, the lower earner can switch to a spousal benefit if it's worth more than what they're currently receiving.

You can estimate your own retirement benefit and your spousal benefit through your my Social Security account. You can set one of these up for free in a few minutes. Have your spouse do this as well. There's a tool in your account that can help you figure out what kind of spousal and retirement benefit you'll qualify for at every possible claiming age.

Use this information to start a conversation with your partner about when each of you wants to apply for Social Security. But stay open to changing your plan, if necessary, as you get closer to signing up.

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Key Points

• The FIRE movement requires aggressive saving and present-day sacrifices to achieve early retirement.

• Most forms of FIRE involve saving at least 50% of your income each year.

• There are more flexible options that require smaller savings targets.

• The $23,760 Social Security bonus most retirees completely overlook ›

If you've done any research into early retirement strategies, there's a good chance you've come across the Financial Independence, Retire Early (FIRE) movement. It's been gaining steam over the last few decades, promising retirement in your 40s or even your 30s if you're willing to work hard and save aggressively.

But as the movement has grown, it's also splintered into different groups pursuing slightly different goals. Understanding these differences is the first step to figuring out which, if any, make sense for you. Here are the four most common types around today.

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1. Lean FIRE

Lean FIRE involves retiring on a modest income, often about $40,000 or less, adjusted for inflation. Like all forms of FIRE, it requires aggressive saving -- often 50% or more of your annual income -- throughout your working years. But because of its low annual retirement expenses, it's easier to achieve your lean FIRE number (your savings target) than it is with other FIRE subsets.

Lean FIRE may not appeal to you if you aren't comfortable making sacrifices over the long term. It's common for all FIRE adherents to live frugally while they try to save for retirement. But lean FIRE carries this frugality through the rest of your life.

This could become problematic for some, especially if you have a lot of unplanned expenses in retirement. You'll need a backup plan for what you'll do if you find you're draining your savings faster than expected.

2. Fat FIRE

Fat FIRE is the opposite of lean FIRE. It usually involves high annual expenses in retirement -- often $100,000 or more. This could be a better fit for you if you want a more luxurious lifestyle in retirement. It also gives you more cushion in case of unexpected expenses. You can always scale back your discretionary spending a little while still covering the basics.

The big problem with fat FIRE is that it requires a much higher FIRE number. A general rule for all types of FIRE is to save 25 to 33 times your annual expenses. That could be as much as $3.3 million for someone who hopes to spend $100,000 per year. It takes time to save that much, even if you can set aside half your income. You may not be able to retire as early as you could if you opted for one of the other FIRE types listed here.

Or you might have to make even greater sacrifices in the present. Some fat FIRE adherents save 75% of their annual income for retirement. That could seriously reduce the money left over for covering your living expenses today, and it might not be feasible for you.

3. Barista FIRE

Barista FIRE is an alternative to lean FIRE for those who want to retire early but are worried about draining their savings too quickly. With this strategy, you plan to work a flexible job, like being a barista, even after you retire. This way, you have a steady paycheck to supplement your personal savings.

This also reduces your FIRE number and gives you something to fall back on if unexpected expenses come up. You can always pick up a few extra shifts if need be until you've gotten your budget back on track. Some people enjoy the purpose and camaraderie that comes with having a job, too.

One thing to bear in mind, though, is that you may not be able to work forever. Sometimes, health or family caretaking issues force people to leave the workforce, whether they want to or not. So it doesn't hurt to have a little extra stashed away in case you aren't able to continue working as planned.

4. Coast FIRE

If you're skeptical about saving enough money to last 40 or more years of retirement, coast FIRE could be the right choice for you. This approach doesn't actually involve retiring early. You retire at a more typical age -- often your early to mid-60s -- but you get your saving out of the way as quickly as possible.

A significant chunk of your retirement savings often comes from investment earnings. Funds you contribute early on in your career often wind up being worth the most in the end because they're invested the longest and have the most time to grow.

With coast FIRE, you take advantage of this by saving up to a certain target. Then, you stop setting aside money and allow your savings to continue to grow until your retirement age. Once you've hit your coast FIRE number, you can scale back your hours in the workforce, possibly dropping to part-time.

This strategy involves making certain assumptions about how quickly your retirement savings will grow. It's important not to be too optimistic here. Plan for about a 6% average annual return, just to be safe.

If your investments grow more quickly, that's great, and you may be able to retire earlier than planned. If not, your plan won't be derailed.

It's OK if FIRE isn't right for you

It's also possible that none of the FIRE options mentioned feel like the right fit for you, and that's fine. FIRE isn't something that's appealing or feasible to everyone, and it's not necessary to enjoy a comfortable retirement.

A common rule of thumb is to save 15% of your income for retirement. This assumes you plan to retire at a more traditional retirement age. If you're able to do a little more than that without making too many sacrifices in the present, that might be a more sustainable path for you.

The most important thing is to find a plan that you can stick with. You don't want to burn out and save 50% of your income one year and nothing for the next five. Figure out what feels comfortable for you, and begin with that. Then, if you feel you can increase your savings rate a little down the road, you can give it a shot.

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Key Points

• Your Social Security benefit is based on your average monthly earnings over your 35 highest-earning years, adjusted for inflation.

• When you choose to claim affects the size of your benefit checks for the rest of your life.

• Married couples should choose their claiming ages together to maximize their household benefits.

• The $23,760 Social Security bonus most retirees completely overlook ›

It's natural to want to start Social Security as soon as possible. You've spent decades paying into the program, after all. You deserve to get some of that money back in retirement. But if your goal is to maximize your lifetime benefit, rushing in could be a costly mistake.

Squeezing the most money out of the program requires careful strategy and sometimes waiting. But if the three signs below apply to you, now could be the right time to apply for benefits.

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1. You understand how your work history affects your benefits

The Social Security Administration bases your benefit on your average monthly earnings, adjusted for inflation, over your 35 highest-earning years. Understanding this gives you two key ways to boost your checks.

First, ensure you have worked work for at least 35 years before applying if possible. This helps you avoid zero-income years in your benefit calculation. If you can't work that long, that's OK. But be prepared for slightly smaller checks when retiring before hitting the 35-year mark. If you can work longer than 35 years, it's often worth doing because it could result in larger checks if you earn more now than you did in the past.

You can also increase your checks by boosting your income during your career. The only people this won't work for are those already earning more than $176,100 -- the taxable wage base in 2025. The government doesn't assess Social Security taxes on income over this amount, so earning more won't boost your checks.

2. You've chosen the best-claiming age based on your health and finances

Your claiming age also affects the size of your Social Security checks. The government assigns everyone a full retirement age (FRA) based on their birth year. Most people today have FRAs of 67, though some older adults have FRAs as young as 66.

Claiming before your FRA can reduce your checks by up to 30%. On the other hand, you can delay benefits past your FRA and your checks will continue to grow until you qualify for your maximum benefit at 70.

Generally speaking, most people would get a larger lifetime benefit if they waited until their FRA or beyond to claim. But this isn't the case for those in poor health. These individuals could be better off claiming early so they can get as much money from the program as possible before they pass away.

You may also have no choice but to claim early if you aren't able to work and don't have adequate personal savings to cover your expenses. In this case, claiming Social Security early is better than taking on costly debt. But you may still be able to delay benefits by a month or two in order to lock in slightly larger checks for the rest of your life.

3. You've talked your decision over with your spouse

Married couples often get more from the program when they coordinate their Social Security claiming strategy. When both have earned relatively similar amounts throughout their careers, that might mean each person delaying as long as possible.

Or if there's a significant income disparity, the lower earner might claim early to help the higher earner delay benefits. Then, once the higher earner applies, the lower earner can switch to a spousal benefit if it's worth more than what they're already getting.

Ensure you and your partner agree on a plan before you sign up for the program. It's possible to withdraw your Social Security application after you've applied, but it's difficult, so it's much better to choose your claiming age carefully from the start.

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View the "Social Security secrets" »

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Key Points

• Unfortunately, Social Security's trust funds are projected to be depleted in 2034.

• The program could face benefit cuts of up to 19% if the government doesn't enact reforms.

• Saving as much as you can for retirement and adjusting your retirement plan as needed will be key.

The year 2035 feels a long way off, especially when you're still stuck in a 9-to-5 job you don't like. If you plan to retire in a decade or so, you probably can't wait until you can sign up for Social Security and start enjoying the monthly benefit checks -- and the freedom -- you've worked so hard for all these years.

But Social Security will likely look different by then, and that could have profound implications for your lifestyle in retirement. There are still a lot of unknowns, but we can say pretty confidently that the next few years will force workers and retirees to adapt in new ways to remain financially secure.

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Social Security is heading for a shortfall

Social Security has been in financial trouble for a while now. Its expenses began exceeding its total income in 2021, and costs have exceeded Social Security payroll and benefit tax revenue since 2010. So far, it's been able to keep checks going out as scheduled because of the extra money in the trust funds to make up the difference. But that can't work forever.

The latest Trustees Report estimates that the trust funds will be depleted in 2034, a year earlier than previously thought. That doesn't mean Social Security would disappear. Revenue from Social Security payroll and benefit taxes would still fund the bulk of seniors' benefits. But cuts are a real possibility.

Without trust fund reserves, the program could only afford to pay out about 81% of scheduled benefits in 2035. That would drop the average $2,002 monthly benefit as of May 2025 to $1,622 per month. That's a loss of more than $4,500 over the course of a year. It would be a huge blow to seniors, many of whom depend on their checks to cover most or all of their retirement expenses.

Fortunately, severe benefit cuts like this are unlikely. Social Security has faced insolvency before, and Congress stepped in to reform the program. Last time, they introduced benefit taxes and raised the Social Security payroll tax rate. So far, Washington hasn't made a lot of progress on addressing this round of funding issues, but expect it to give this more and more attention in the coming years.

Whatever the final fix, it's going to leave some people unhappy. Seniors may have to accept smaller checks, or workers may have to pay more into the program. It's possible both groups may have to shoulder some of the burden.

What this means for you if you plan to claim Social Security in 2035

The uncertainty around Social Security is one of the most challenging parts of retirement planning for those who expect to claim benefits in 2035 and beyond. Right now, we can't know how far checks will go in a decade, which means we also can't know how much of our expenses we'll need to cover on our own.

There's no way to fix this, but there are two things you can do to prepare yourself for whatever the future holds. The first is to save as much money as you can for retirement right now. If you're already retired, be conservative with your withdrawals so you can stretch your personal savings as long as possible. The more money you have set aside, the easier time you'll have weathering whatever changes might be coming to Social Security.

The second thing you should do is revisit your retirement plan as soon as the government finalizes its Social Security reforms. You may need to make changes, like further limiting withdrawals or taking on a part-time job to make ends meet. If you're not already retired at that time, you may be able to delay your retirement to give yourself additional time to save.

In the meantime, if you have strong feelings about how the government should handle Social Security's looming insolvency, you can write to your Congressional representatives to make your opinions known. Urge them to address the issue promptly, because the longer we wait, the more drastic the necessary reforms become if we hope to avoid benefit cuts.

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View the "Social Security secrets" »

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Key Points

• The latest draft of the "One, Big, Beautiful Bill" includes an additional tax cut for seniors.

• It doesn't apply to high earners or those under age 65.

• This falls far short of President Trump's promise to end Social Security benefit taxes.

If you're a senior on Social Security, you were probably a little intrigued by President Donald Trump's promise to end Social Security benefit taxes. This tax has become a major pain point for retirees, often costing thousands of dollars and eating into their already limited budgets.

The Senate recently announced its version of the "One, Big, Beautiful Bill" (OBBB), which it claims would deliver on the president's promise and exempt 88% of seniors on Social Security from benefit taxes. However, all isn't quite what it seems. While it does promise savings for some seniors, it falls short of what many were expecting.

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The "One, Big, Beautiful Bill" doesn't end Social Security benefit taxes

President Trump repeatedly stated that he wanted to end Social Security benefit taxes, but that's not what the OBBB does. Instead, it adds a new $6,000 tax deduction for seniors ($12,000 for married couples) that they can claim on top of the standard deduction and existing senior deduction. Here's a closer look at how this adds up:

Date source: WhiteHouse.gov.

This would reduce qualifying seniors' taxable income and result in tax savings. According to a report by the Council of Economic Advisors, a single adult earning $40,000 in Social Security income and $40,000 from a 401(k) or IRA would pay about $7,190 in taxes in 2026 under current law. If you add in the OBBB senior deduction, their tax bill would drop to about $5,685. This is about a $1,500 deduction, $900 of which is attributable to the new senior deduction.

For married couples, it's a similar story. With $40,000 in Social Security income and $40,000 from a 401(k), they'd owe $3,150 in taxes under current law, but just $1,110 under the OBBB -- a savings of over $2,000.

But there are two important caveats here. First, the new senior deduction only applies to those 65 or older. Seniors aged 62 to 64 wouldn't notice any change and could still owe taxes on a substantial portion of their Social Security benefits.

Second, there are income phaseouts on the new deduction. For every $1,000 you earn over $75,000 for single adults or $150,000 for married couples filing jointly, the deduction drops by $60. That means single adults with incomes of $175,000 or more and married couples with incomes of $250,000 or more wouldn't qualify for the additional deduction and would continue to owe Social Security benefit taxes, as usual.

If you fall into either of these groups, you won't notice any tax savings from this law change. However, if you're 65 or older and below the income thresholds, you would likely notice some savings.

How this compares to eliminating Social Security benefit taxes

While any tax savings is helpful for seniors who are living on a fixed income, it's worth noting that this tax deduction doesn't accomplish President Trump's intended goal of ending Social Security benefit taxes. Truly eliminating benefit taxes would've had an even more pronounced tax reduction for seniors.

Consider a single 65-year-old senior who earns $24,000 annually from Social Security and withdraws $40,000 from their 401(k) in 2025. The following table breaks down how much they'd owe in taxes under current law, the OBB, and a scenario where the government eliminates benefit taxes altogether.

Source: Author's calculations.

It's clear that the OBBB proposal falls far short of the savings seniors would get if President Trump had actually made good on his promise to end benefit taxes. The difference between the two approaches is $1,728.

That said, eliminating benefit taxes would have its downsides, too. Those taxes are one of just three funding sources for Social Security -- a program that's only about eight years from insolvency, with no concrete plans for reform in sight. Ending benefit taxes would accelerate the time to insolvency, potentially short-changing seniors even further in the future.

It's worth noting that the OBBB tax deduction hasn't been finalized yet. The bill passed the Senate but now must return to the House for a vote. It's possible this tax deduction will undergo further changes. That's something definitely worth keeping an eye on if you're on Social Security.

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If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

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View the "Social Security secrets" »

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You probably know by now that retirement isn't all about carefree fun. Living off a fixed income can be tough, especially if you weren't able to save as much as you wanted to when you were younger. So every dollar you have, including your Social Security checks, matters.

Unfortunately, the latest Social Security Trustees Report has raised concerns about the program's solvency. This is a serious issue for seniors who rely heavily on their Social Security benefits to carry them through the next few decades. But that doesn't mean you'll soon be covering your expenses all on your own either.

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What's really happening with Social Security

Social Security has been spending more money than it's taken in every year since 2021, and that problem continues to worsen. Baby boomers retiring en masse and fewer workers in younger generations to replace them has meant that Social Security tax revenue isn't enough to pay out everyone's benefits.

So far, the program has stayed afloat by making up the difference with money in the program's trust funds. But this won't work forever. Eventually, those trust funds will run out, and Social Security could face a shortfall when it does.

When Social Security will run out of money has always been a bit of a moving target. Last year, the Trustees Report predicted depletion in 2035. But this year's report now estimates that the trust funds will be depleted a year earlier. This may be due to the passage of the Social Security Fairness Act earlier this year, which increased benefits for certain retirees, and which was projected to accelerate trust fund depletion by six months.

This wouldn't be the end of Social Security, though. It would continue to receive revenue from workers paying Social Security payroll taxes and seniors who owe income taxes on a portion of their benefits. Together, this would be enough to cover the majority of Social Security benefits payable today.

The 2024 Trustees Report estimated that after trust fund depletion, the program could pay out about 83% of scheduled benefits. The 2025 report puts this a little lower -- around 81%. In either case, you'd definitely continue to get something from the program in 2035 and beyond.

That said, a nearly 20% benefit cut is a serious concern, particularly for those who have little to no personal savings. But it probably won't happen.

Changes are likely coming to Social Security

Though the deadline has moved up a little, the government has been aware of Social Security's looming insolvency for years, and this isn't the first time this has happened either. Last time, Congress made changes, like adding Social Security benefit taxes, to bring in more money so it wouldn't have to slash benefits.

It's likely this happens again, though we don't know when Washington will make the changes or what they'll look like. Benefit cuts remain a possibility, but it's unlikely they would be 20%. And they may not happen at all.

The government might decide to increase the Social Security payroll tax rate that workers pay or increase the ceiling on income subject to Social Security tax (currently $176,100 in 2025). This would force wealthier Americans to pay more into the program.

For now, all we can do is wait to see what happens. But once there's a plan in place, it'll be time to revisit your budget and figure out how you'll cover your expenses moving forward.

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If you know anyone on Social Security, you may have heard them complain that their checks don't go far enough. While the average monthly benefit has now climbed to nearly $2,000, that's still well below what the average senior household spends. Yet there are some retirees that could live pretty well off Social Security if they wanted to.

The maximum monthly check is $5,108, which adds up to an annual benefit of over $61,000. This number continues to rise every year, and there are actually only three criteria you have to meet -- but only a few ever pull it off.

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1. Work at least 35 years before retiring

The Social Security Administration bases your benefit on your average monthly earnings over your 35 highest-earning years, adjusted for inflation. You can still claim benefits with a work history as short as 10 years. But if possible, it's worth sticking it out until you reach the 35-year mark.

Claiming checks with a shorter work history means you'll have one or more zero-income years factored into your benefit calculation. Even one of these is enough to permanently reduce your checks by several dollars. This can result in thousands of dollars in lost benefits over your lifetime.

On the other hand, working longer than 35 years could increase your benefits if you're earning more now than you did early in your career. That's because these more recent, higher-earning years slowly push your earlier, lower-earning years out of the benefit calculation.

2. Pay the maximum Social Security payroll tax each year

You probably pay Social Security payroll taxes on all of your income each year, but this isn't true for everyone. In 2025, Social Security tax stops once you earn more than $176,100. This limit adjusts annually for inflation.

You must earn an amount equal to or greater than the annual limit in at least 35 years in order to qualify for Social Security's largest checks. This is the reason most people don't manage to take home the max benefit. Few earn that much annually, and the ceiling only rises with time.

However, even if your income bars you from claiming the maximum Social Security amount, you can still use this knowledge to help you grow your own checks. Anything you can do today to boost your income -- finding better-paying employment elsewhere, negotiating a raise, starting a side hustle -- will likely lead to larger benefits in retirement.

3. Sign up at 70

You can apply for Social Security as early as age 62, and many choose to sign up then. But this isn't always your best option if you're trying to maximize your lifetime benefit. Every month you delay Social Security increases your benefit by anywhere from 5/12 of 1% to 2/3 of 1% per month until you qualify for your largest checks at 70.

If you hope to claim the $5,108 max monthly benefit, you'll need to wait at least this long to sign up. If you claim at 62, your largest checks would be just $2,831 per month in 2025.

It's worth noting that claiming at 70 isn't the right choice for everyone. If you have a short life expectancy, you may get a larger lifetime benefit by claiming early. And if you don't have any other way to cover your expenses until 70, signing up for Social Security early is likely a better option than taking on debt.

Choosing the claiming age that makes the most sense for you is one of the best ways for you to maximize your lifetime Social Security benefit, even if your monthly checks fall short of the program's top prize. Keep in mind that you may need to adjust your planned claiming age if your health or financial situation takes a turn, or if the government makes significant changes to Social Security in the future.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

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View the "Social Security secrets" »

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It's pretty difficult to turn on the TV or even scroll through your social media feed these days without seeing some mention of President Donald Trump. Whether you voted for him or not, you probably want to stay informed about the changes he's been making, especially if they will affect your finances.

This is especially true for retirees living on fixed incomes who often depend heavily on their Social Security checks. President Trump appealed to these voters during his campaign, promising to end Social Security benefit taxes so they can keep more of their checks.

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This is still a work in progress. It'll take a new law from Congress to make such a major change. But that doesn't mean Social Security has been left untouched by President Trump's attempts to overhaul the federal government. He has made six Social Security changes so far, some of which have already gone into effect while others will come into play later in the year.

1. Facilitating the Social Security Fairness Act's benefit increase for 3.2 million seniors

Former President Biden signed the Social Security Fairness Act in his final days in office. This law eliminated two provisions, one that reduced benefits for retirees receiving pensions from employers that did not withhold Social Security taxes and the other for their family members. However, the Biden administration didn't have time to facilitate the benefit increases and the millions of dollars in back benefits the law called for. That fell to the Trump administration.

Though initially, the Social Security Administration (SSA) estimated it could take up to one year for the 3.2 million affected beneficiaries to receive the extra money they're now entitled to, it was able to automate much of this change. Most affected seniors received a one-time payment for any back benefits they were entitled to in March 2025 and will see a permanent benefit increase with their April 2025 payment.

There are some complex cases that the SSA couldn't automate. If yours is among them, you may have to wait up to one year to get the extra money you're owed. If your April payment is the same as your March payment and you think you should be entitled to more under the Social Security Fairness Act, contact the SSA.

2. Terminating some Social Security office leases

The Department of Government Efficiency (DOGE), a Trump administration initiative headed by billionaire Elon Musk, lists several Social Security office leases among its list of savings generated thus far. However, a recent SSA blog post clarified that the government hasn't permanently closed any local field offices.

It did close one hearing office in White Plains, New York, and it may temporarily close field offices due to bad weather or a facilities issue. If you're unsure whether any field offices near you are closed, you can use the SSA's Field Office Locator tool to check.

3. Reinstating the 100% overpayment recovery rate

In 2024, the Biden administration reduced the Social Security overpayment recovery rate to the greater of $10 or 10% of your checks. For example, if you received $1,000 in extra Social Security benefits due to a clerical error and couldn't pay it back right away, the SSA could withhold either $10 or 10% of your checks, whichever was larger, each month until it reclaimed the extra $1,000.

The Trump administration has reinstated the 100% overpayment recovery rate that was in place before the 2024 rule change. This will apply to all overpayments that occur on or after March 27, 2025. Overpayments that occurred before this date will retain the 10% cap, as will Supplemental Security Income (SSI) overpayments.

If you can't afford to lose your checks due to overpayment recovery, you can contact the SSA to request a lower recovery rate. You can also request a waiver of overpayment recovery. This may let you keep the extra money if you can prove to the SSA that the overpayment wasn't your fault and you can't afford to pay it back.

4. Expediting direct deposit changes

Changing your direct deposit information with the SSA used to take up to 30 days. Beginning in April 2025, these updates will now take just one business day. The easiest way to make these changes is to set up a my Social Security account, where you can view and update all your Social Security information.

5. Adding new identity verification requirements

Beginning April 14, 2025, it will no longer be possible to make account changes or complete new Social Security applications over the phone. You may begin the application process by phone if you prefer, but you must either use your my Social Security account or visit a local field office where you'll need to present your ID for verification to complete your application.

This rule will not apply to those signing up for Social Security disability benefits, Medicare, or SSI. These individuals will be able to complete their applications entirely over the phone if they're unable to do so through their my Social Security account.

6. Ending delivery of most paper Social Security checks

The Trump administration has announced that the SSA will end the delivery of most physical Social Security checks on Sept. 30, 2025. There will be exceptions for individuals without bank accounts into which the SSA can directly deposit checks.

It's not clear yet what steps, if any, you may have to take to continue receiving paper checks after Sept. 30 if you don't have a bank account. If you're currently receiving paper checks, you'll likely get more guidance on how the SSA will handle this as we approach the September deadline.

It's likely that we could see even more Social Security changes as we move deeper into 2025, including a possible end to Social Security benefit taxes on seniors. If bigger changes like this arise, seniors may need to take some time to review their budgets going forward.

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