By Alessandra Malito
Nearly 30% of people surveyed say Social Security eligibility was a major reason they decided to retire
Becoming eligible for Social Security benefits is a major reason three in 10 workers retire, a new AARP survey found.
Americans become eligible for Social Security retirement benefits when they’re in their early 60s, and for some, that’s all they’re waiting for to leave the workforce.
Almost three in 10 people said becoming eligible for Social Security was a “major reason” for initially retiring, and another two in 10 said it was a “minor reason,” according to an AARP survey conducted in the summer and winter of 2025. Other major reasons behind deciding to retire included having enough money saved, becoming eligible for Medicare, becoming eligible for a pension or other retirement plan, or having an illness or disability.
For decades, retirement income was made up of multiple sources, such as workplace pension plans, Social Security benefits and individual retirement savings. But as private companies move away from offering pensions, and with many workers not saving enough money for retirement, many Americans rely on Social Security as a main source of income after they are done working. More than six in 10 retirees said Social Security was a major source of their income in retirement, according to a 2025 Gallup poll.
To become eligible for Social Security retirement benefits, workers must accrue 40 credits, which is about 10 years of work at jobs that pay taxes into the system. Social Security retirement benefits can begin as early as age 62 for qualifying individuals, but the agency permanently reduces benefits for every month prior to a claimant’s full retirement age, which is 67 for anyone born in or after 1960.
For example, someone whose full retirement age is 67 and files for benefits at 62 would get 70% of the monthly benefit they would have gotten had they waited five more years, according to the Social Security Administration.
The agency also offers credits for people who don’t claim until after their full retirement age, with benefits growing by about 8% for every year up to age 70.
When to claim Social Security
There’s no right answer to the question of when claim Social Security benefits, but people who are nearing retirement should weigh their options carefully before jumping to claim. Perhaps the biggest reason to claim benefits is necessity – some retirees simply need the money to live on as soon as it becomes available.
When considering when to claim Social Security, longevity also matters. The longer a person expects to live, the more likely they are to come out ahead by delaying claiming and getting a higher benefit. Some Social Security experts refer to a “break-even” analysis, which is done by comparing the benefits that would apply at different claiming ages. That break-even point is usually somewhere in a person’s early 80s, although the actual age depends on taxes and inflation, advisers say.
Another factor to consider is coordination of benefits between spouses. The Social Security Administration offers married people spousal benefits, which can be as much as 50% of a spouse’s benefit at full retirement age. That means couples have more strategies for claiming than single beneficiaries.
Beneficiaries should also proceed with caution if they intend to work while receiving benefits but before they reach full retirement age. Seven percent of the AARP survey respondents said they had returned to work after retiring, mostly out of financial necessity.
Those who are receiving benefits and still working but who have not yet reached full retirement age are likely to paying more in taxes, because up to 85% of Social Security benefits can be taxable, depending on a person’s income. In addition, the Social Security Administration withholds a portion of benefits for individuals whose income is higher than certain thresholds before their full retirement age. That means they not only have a permanent reduction in their benefit because they claimed early, but they also temporarily receive less in monthly benefits because of earnings limits (although once they reach their full retirement age, the agency will recalculate benefits to incorporate the amount withheld due to the earnings limit).
-Alessandra Malito
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02-05-26 1622ET
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