Social Security benefits: Questions & answers guide

Social Security sounds simple until you have to make a decision about it.Should you claim at 62? Does your spouse automatically receive half of your benefit? Can Social Security be taxed? Does everyone get exactly 2.8% more in their bank account in 2026?Small misunderstandings can affect retirement income for years.For 2026, Social Security benefits increased by 2.8% through the annual cost-of-living adjustment, or COLA. The Social Security Administration estimates that the average retired worker benefit increased by roughly $56 per month.But the COLA is only one piece of the Social Security puzzle.Here are some of the most common Social Security myths older adults and families should understand before making retirement decisions. Social Security Facts for 2026 at a Glance  2026 Rule  Amount or Age  Social Security COLA  2.8%  Full retirement age for someone turning 62 in 2026  67  Earliest typical retirement claiming age  62  Reduction for claiming at 62 when FRA is 67  Up to 30%  Delayed retirement credits for people born 1943 or later  8% per year after FRA, up to age 70  Earnings limit if under FRA all year  $24,480  Earnings limit in year FRA is reached  $65,160 before FRA  Estimated average retired worker benefit after COLA  About $2,071 to $2,072 per month  SSA confirms that people attaining age 62 in 2026 have a full retirement age of 67. It also lists the 2026 earnings limits and 2.8% COLA. Myth 1: Everyone Should Claim Social Security at 62Fact: Age 62 is the earliest typical retirement claiming age, not necessarily the best age for everyone.You can generally begin Social Security retirement benefits at 62. But claiming before full retirement age permanently reduces the monthly benefit compared with waiting until FRA.For someone whose full retirement age is 67, claiming at exactly 62 can reduce the retirement benefit by 30%.Simple ExampleSuppose your full retirement age benefit would be:$2,000 per monthIf the applicable early-claiming reduction were 30%, starting at 62 could reduce that amount to roughly:$1,400 per monthThat difference could continue throughout retirement, although future COLAs would apply to the benefit amount.Does That Mean Nobody Should Claim at 62?No.Claiming decisions are personal.Factors can include: Current income needs Health Life expectancy Employment Savings Spouse or survivor considerations Other retirement income Family circumstances There is no single claiming age that is right for every senior.Myth 2: Full Retirement Age Is 65Fact: Medicare eligibility and Social Security full retirement age are different.Age 65 is still an important Medicare milestone for many people, but it is not necessarily your Social Security full retirement age.Social Security full retirement age ranges from 66 to 67 depending on birth year. For people born in 1960 or later, it is 67.For someone turning 62 in 2026, full retirement age is 67.Why Does This Matter?If you assume age 65 is your full retirement age and claim then, your monthly Social Security benefit may still be reduced.Always check your actual FRA before choosing a claiming date.Myth 3: There Is No Reason to Wait Past Full Retirement AgeFact: Your retirement benefit can continue increasing until age 70.People who delay retirement benefits beyond full retirement age can receive delayed retirement credits.For people born in 1943 or later, delayed retirement credits generally increase the benefit by 8% per year, calculated monthly, until age 70.There is no additional delayed retirement credit for waiting beyond age 70.ExampleSuppose your benefit at full retirement age is:$2,000 per monthAn 8% annual delayed retirement credit represents approximately: One year: $160 more per month Two years: $320 more per month Three years: $480 more per month The actual Social Security calculation involves monthly credits and applicable COLAs, so personal benefit estimates should come directly from SSA.Waiting is not automatically the right strategy, but assuming there is no financial benefit to delaying past FRA is incorrect.Myth 4: A Spouse Automatically Gets Half of Your BenefitFact: Spousal benefits are more complicated than "you get half."A spouse's benefit can be as much as 50% of the worker's primary insurance amount, or PIA, if the spouse claims at full retirement age and meets the applicable requirements. Claiming a spousal benefit earlier can reduce the amount.But that does not mean a spouse receives their own retirement benefit plus another 50% of the worker's benefit.What Happens If You Qualify for Both?SSA generally pays your own retirement benefit first.If your eligible spousal amount is higher, Social Security adds enough from the spousal benefit to bring the combined payment up to the higher amount.ExampleSuppose: Your own retirement benefit is $1,000 Your eligible spousal benefit amount is $1,250 You would not receive $2,250.Instead, Social Security could pay:$1,000 from your own record + $250 in spousal benefits = $1,250 totalSSA uses this same basic structure when explaining combined retirement and spousal benefits.Myth 5: If My Spouse Waits Until 70, My Spousal Benefit Also Gets BiggerFact: Delayed retirement credits earned by the worker do not increase the maximum regular spousal benefit.The maximum spouse's benefit is generally based on up to 50% of the worker's full retirement age benefit, not the worker's larger age-70 amount after delayed retirement credits.This rule is different from certain survivor benefit rules.A surviving spouse's potential benefit may reflect the deceased worker's higher benefit after delayed retirement credits.That difference makes coordinated Social Security planning especially important for married couples.Myth 6: Social Security Benefits Are Never TaxedFact: Some Social Security benefits can be subject to federal income tax.Federal taxation depends on filing status and what the IRS calculates using your Social Security benefits plus other income.The IRS generally looks at one-half of your Social Security benefits plus other income, including tax-exempt interest.Federal Base AmountsSocial Security benefits may become taxable when the applicable calculation exceeds: $25,000 for single, head of household, or qualifying surviving spouse filers $32,000 for married couples filing jointly Different rules apply to married taxpayers filing separately.Depending on income, up to 85% of Social Security benefits can be included in taxable income.Important: "85% Taxable" Does Not Mean an 85% Tax RateThis is another common misunderstanding.If up to 85% of your benefit is taxable, it means up to 85% may be included when determining taxable income.It does not mean the government takes 85% of your Social Security check.Your actual federal income tax depends on your broader tax situation and applicable tax rates.What About the New Senior Tax Deduction?Another source of confusion is the enhanced federal deduction for adults age 65 and older.For tax years 2025 through 2028, eligible seniors can claim an additional deduction of up to $6,000 per eligible person, subject to income phaseouts. For a qualifying married couple where both spouses are eligible, the maximum is $12,000.This deduction can reduce taxable income for eligible seniors.However, it did not eliminate the federal rules that determine whether Social Security benefits are taxable. The IRS continues to publish Social Security taxation guidance based on income and filing status.Myth 7: Working While Receiving Social Security Means You Lose Your BenefitsFact: You can work and receive Social Security retirement benefits.However, if you are below full retirement age and earn more than the annual earnings limit, SSA may temporarily withhold some benefits.2026 Earnings LimitsIf you are under full retirement age for the entire year:Limit: $24,480SSA generally withholds $1 in benefits for every $2 earned above that limit.If you reach full retirement age during 2026:Limit: $65,160SSA generally withholds $1 for every $3 above the limit, counting only earnings before the month you reach full retirement age.What Happens at Full Retirement Age?Beginning with the month you reach FRA, there is no Social Security retirement earnings limit.SSA also recalculates retirement benefits at full retirement age to account for months when benefits were withheld because of excess earnings.So "withheld" does not necessarily mean the same thing as permanently lost.Myth 8: The 2026 COLA Means Everyone Gets Exactly $56 MoreFact: The COLA is a percentage, not a flat-dollar raise.The 2026 Social Security COLA is 2.8%.SSA estimated that the average retirement benefit would increase by approximately $56 to $57 per month, but that is an average, not what every beneficiary receives.SSA estimated an average retired worker benefit of roughly $2,071 to $2,072 per month after the 2026 COLA, depending on the projection date and data used.Myth 9: The 2026 COLA Started When It Was AnnouncedFact: The COLA was announced in October 2025 but showed up in Social Security payments beginning in January 2026.SSA determined the 2.8% COLA on October 24, 2025.For Social Security beneficiaries, the increase applies to the December 2025 benefit, which is paid in January 2026.SSI followed a slightly different payment schedule. Increased January 2026 SSI payments were issued on December 31, 2025 because January 1 was a federal holiday.Simple TimelineOctober 24, 2025: SSA announces the 2.8% COLA.December 2025: Beneficiaries receive notices explaining their new amounts.December 31, 2025: January SSI payments reflecting the COLA are issued early because of the holiday.January 2026: Social Security beneficiaries begin receiving payments reflecting the 2.8% increase.Myth 10: A 2.8% COLA Means Your Bank Deposit Must Rise 2.8%Fact: The COLA applies to the Social Security benefit calculation, but your net deposit can be affected by deductions.Your actual amount deposited may differ from the gross benefit amount because an individual may have deductions or withholding associated with their Social Security payment.That is why it is better to check your personalized SSA COLA notice rather than simply multiplying last year's bank deposit by 1.028.SSA provided personalized notices showing beneficiaries their exact 2026 benefit amounts and deductions.Before Claiming Social Security, Check These Five ThingsBefore choosing a claiming date, review: Your full retirement age Your estimated benefit at 62, FRA, and 70 Your spouse's or survivor benefit possibilities Whether you plan to continue working Your tax and retirement-income situation Your personal my Social Security account can provide estimates based on your earnings record and show how different claiming ages may affect your retirement benefit. SSA recommends using personalized estimates when evaluating when to claim.Do Not Base a Retirement Decision on a Social Security MythSocial Security decisions can affect income for decades.Claiming at 62 is not automatically right or wrong. A spouse does not simply receive half of another spouse's check. Benefits are not automatically tax-free. And the 2026 COLA does not mean every retiree received the same dollar increase.Before making a major decision, check your actual Social Security record, understand your full retirement age, compare claiming scenarios, and consider how the decision fits with your broader retirement plan.A few minutes spent checking the rules can prevent a misunderstanding from turning into a long-term financial mistake.Seniors Blue Book helps older adults, caregivers, and families connect with trusted local resources, including financial professionals, Medicare resources, senior housing, home health, home care, legal services, transportation, and other aging-related support.If your organization serves older adults and families, a free Seniors Blue Book listing can make your services easier to discover when people in your community are actively searching for help. We can also discuss additional opportunities to increase your visibility and connect with more seniors, caregivers, and referral partners. Contact Seniors Blue Book: Email: [email protected] Phone: 800-201-9989

A widows pension is the common name for Social Security survivor benefits, monthly payments provided to certain family members after a worker who paid Social Security taxes passes away.These benefits are based on your spouses earnings record and work history, not your income. In many cases, they can continue for the rest of the surviving spouses life if eligibility requirements are met.To qualify, the deceased spouse must have earned enough Social Security work credits. While many workers reach full eligibility with about 40 credits (roughly 10 years of work), the exact requirement depends on their age at death; younger workers may qualify with fewer credits.A Brief History of Survivor BenefitsSocial Security survivor benefits were introduced in 1939, expanding the program beyond retirement income.These updates were designed to: Provide financial support to families after the loss of a wage earner. Extend benefits to spouses and dependent children. This marked the first step toward Social Security becoming a broader safety netnot just a retirement program.Who Qualifies for Survivor Benefits in 2026?Eligibility depends on your relationship to the deceased and your age. For surviving spouses, the general rules include:Basic EligibilityYou may qualify if: You are age 60 or older. You are age 50 or older with a qualifying disability (that began within seven years of your spouses death). You are caring for the deceaseds child who is under age 16 or has a disability (no minimum age requirement) . Additional Considerations You typically must have been married for at least nine months (with some exceptions). Divorced spouses may qualify if the marriage lasted at least 10 years. If you remarry after age 60 (or age 50 if disabled), you can still receive survivor benefits. Coordination With Your Own BenefitsIf youre eligible for both: A survivor benefit, and Your own Social Security retirement benefit You typically receive the higher of the two, but you may have the option to switch between them depending on timing.How Much Could You Receive?The amount varies based on: Your spouses lifetime earnings. The benefit they were receiving (or eligible to receive). Your age when you claim. In general: At full retirement age, you can receive up to 100% of your spouses benefit. At age 60, you may receive as little as 71.5%, with reduced payments for claiming early. There may also be a one-time lump-sum payment of $255 available to eligible survivors.When Should You Claim?One of the most important decisions is when to begin benefits. You can claim as early as age 60 (or 50 if disabled). Waiting until your full retirement age (typically 6667) can increase your monthly payment. Claiming early permanently reduces your benefit. If youre still working, keep in mind: Benefits may be temporarily reduced if your earnings exceed annual limits before full retirement age . Related: Maximizing Social Security Benefits for Middle to Upper-Income RetireesHow to Apply for Survivor BenefitsBefore applying, the Social Security Administration (SSA) must be notified of your spouses death. In many cases, the funeral home handles this step.To apply: Call Social Security at 1-800-772-1213, or Visit your local office. Applications cannot currently be completed fully online.You may need to provide: A death certificate. Marriage documentation. Social Security numbers. Tax forms or proof of earnings. For more details, you can visit the official SSA overview: Learn about Survivor BenefitsFinal ThoughtsLosing a spouse is never easy, and financial concerns can add to that stress. Survivor benefits are designed to provide some stability during a difficult time.Understanding how widows pensions workespecially eligibility rules, timing strategies, and benefit optionscan help you make more informed decisions about your financial future.Want more? Check out our blog, Social Security in 2026: How Far Will Your Benefits Really Go?Were Here for You!Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing. Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc.  Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).  Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA). Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk. Investments are: Not GuaranteedInvolve RiskMay Lose Value.

Retirement & Taxes Under the New OBBBAThe One Big Beautiful Bill Act (OBBBA), passed in 2025, changes several tax rules that directly affect retirees. Some of these updates create opportunities to lower your tax bill, while others may require careful planning to avoid losing new benefits.Key Changes for Retirees Bigger Deduction for Seniors Retirees age 65+ now receive an extra $6,000 deduction (per person). This reduces taxable income, but begins to phase out once income exceeds $75,000 (single) or $150,000 (married). Social Security Relief While Social Security taxation rules remain, OBBBAs new deductions mean that many retirees will owe little to no federal tax on their benefitsprovided income stays under phaseout limits. Retirement Accounts Traditional IRA/401(k) withdrawals remain taxable, with required minimum distributions (RMDs) at age 73. Roth withdrawals continue to be tax-free if rules are met. Roth conversions may be more attractive, especially in lower-income years. Medicare Costs Income still drives Medicare premiums. Poorly timed withdrawals could increase costs. Estate & SALT Deductions The federal estate tax exemption is increased (currently $15M individual / $30M married, indexed). State & Local Tax (SALT) deduction cap temporarily raised to $40,000 for many households.Planning Opportunities Manage income carefully to stay under phaseout limits for the new senior deduction. Consider Roth conversions in lower-income years to reduce future taxable withdrawals. Use Qualified Charitable Distributions (QCDs) to meet RMDs without raising taxable income. Review estate plans under the new exemption levels.The Bottom LineThe OBBBA brings real tax relief to many retireesbut only with the right strategy. Higher-income retirees may see deductions phase out quickly, so planning is key.Now is the time to review your retirement tax plan.Call Senior Tax Advisory Group at 719-596-4844 to schedule your review and see how these new rules may affect your income, Social Security, and legacy.