Social Security is a federal program that provides financial support to eligible individuals — primarily retirees, people with disabilities, and survivors of deceased workers. The program is funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA) throughout a person’s working years. Workers and employers each pay 6.2% of wages (up to a yearly limit), while self-employed individuals pay 12.4%. As a servicemember, you can see this payroll tax on your Leave and Earnings Statement or Retiree Account Statement from Defense Finance and Accounting Services (DFAS). 

About 10 years of work (you need 40 credits) will qualify you for retirement benefits. In 2026, one credit is received for every $1,890 in earnings, up to four credits per year. 

Benefits are based on your average indexed monthly earnings (AIME) from your highest 35 years of earnings. The formula is progressive — it replaces a higher percentage of income for lower earners. Visit ssa.gov/myaccount to create an account and learn about your benefits, as well as benefits for your spouse and survivors. 

Spouses, former spouses (if married at least 10 years), and survivors may qualify for benefits based on your work record, even if they never worked themselves. After your death, your widow(er) could be eligible for 100% of your PIA if they have reached FRA. They can draw it if younger than FRA, but a reduction applies. Age 60 is the earliest a surviving widow(er) can apply for the Social Security Survivor benefit. 

 If you become unable to work due to a severe disability, you may qualify for Social Security Disability Insurance (SSDI), provided you’ve earned enough work credits and meet certain medical criteria. 

 According to recent projections, the Social Security Trust Fund may face shortfalls in the 2030s if no changes are made. There is currently a potential 23% decrease in Social Security benefits looming in the future. However, payroll taxes will continue to fund a large portion of benefits even if reserves are depleted. Understanding the position of the SS Trust Fund underscores the importance for awareness of all your benefits as they impact your financial planning for retirement. The time to make changes is while you’re still young enough to increase earnings, savings, and investments. Be sure to stay up to date on any news that may impact your decision-making. 

Depending on your income, up to 85% of your Social Security benefits may be taxable at the federal level. Some states tax benefits, too, but many do not. 

You can start receiving your benefits as early as age 62, but it’s important to note that they will be permanently reduced for both you (and your spouse, if they receive them on your behalf). The reduction to draw early is about 5/9 of 1% for each month before your FRA. Additionally, if you draw benefits before you reach your FRA but you continue to work, there will be a deduction from your benefit payments for every $2 you earn above the annual limit.

Alternatively, if you wait until you’ve passed your FRA to begin claiming benefits, you can earn delayed retirement credits — about 8% more per year until age 70. Either way, drawing early or delaying benefits carries lasting implications — and any reduction or increase in your benefit will also affect your surviving spouse.

Age 62 is when you first become eligible to receive Social Security benefits, if you have earned enough work credits (usually 40 credits, or about 10 years of work). You can apply up to 3 months before your 62nd birthday, and you can determine the exact amount of your potential Social Security payments at ssa.gov.   

WARNING: Early Retirement Reduction, Survivor, and Spouse Benefits: It is often NOT recommended to start receiving your Social Security benefits at age 62, or any time prior to age 67. Here’s why:  

• If you take benefits before age 67 (your full retirement age (FRA)), you will have a permanent reduction in your monthly payments.  
• If you start receiving Social Security early, your spouse’s survivor benefit (which they could receive after your death) will also be based on your reduced amount, so they will receive less.  
• Your spouse can claim benefits at age 62, based on their own work record, or based on your record (if you’ve started your benefit and you’ve been married at least 1 year). Those benefits will be reduced if taken before age 67.  

If you work while you begin receiving early benefits before age 67 (FRA), your Social Security payments will be temporarily reduced.

• $1 is withheld for every $2 earned above the annual earnings limit (which changes yearly).  
• Once you reach FRA (67), the reduction stops, and future benefits are recalculated to give you credit for withheld months.  

 Your Social Security full retirement age is the age at which you’re eligible to receive 100% of your earned Social Security retirement benefit (your primary insurance amount, or PIA). It depends on your birth year. If you were born in 1960 or later, your FRA is 67. 

At full retirement age (FRA, age 67), you are entitled to receive your full Social Security retirement benefit. There is no reduction in your Social Security if you have earned wages.   

• If you choose to delay filing for retirement (no later than age 70), your monthly benefit increases by approximately 8% per year, or about two-thirds of 1% per month, until age 70.  
• You can determine the exact amount of your potential social security payments at ssa.gov.   
• If you have not yet applied for benefits and you are at or past your FRA, contact the Social Security Administration at 1-800-772-1213 or schedule an appointment online.  

If you postpone receiving your Social Security benefits beyond your full retirement age (FRA), you’ve earned delayed retirement credits that increase your benefit by about 8% for each year you waited, up to age 70. Note that if you apply for benefits later than 6 months after turning 70, you will lose money, as the Social Security Administration will only pay up to six months of retroactive benefits.

Once you’ve decided you are ready to begin receiving your Social Security benefits, visit ssa.gov/apply, or also call 1-800-772-1213 to schedule an appointment, or visit your local SSA office to apply for benefits. Before doing so, make sure you can provide:  

Basic personal information: 

• Social Security number 
• Where you were born (city, state, country)
• Original copy of your birth certificate  
• Verification of your record of earnings 
• A copy of your DD 214s, available from the National Personnel Records Center at 866-272-6272 or archives.gov/veterans
• Employer names 
• Dates worked 
• Average hours worked 
• Pay rates 
• Your spouse/former spouse's Social Security number and birthday 
• Date you got married/divorced 
• Where you got married (city, state, country) 
• Routing and account number for your bank account 
• Age 17 and younger 
• Ages 18-19 and in school (K-12) full time 
• Any age if they developed a disability at age 21 or younger 

Your earnings history: 

• Work within the last five years: 

• Current and past marriages: 

• Direct deposit for benefit payments: 

Names of your children 
Some of your children may be eligible for benefits based on your work history. You’ll be asked for the first and last name of children who are in any of the following groups: 

• Age 17 and younger 
• Ages 18-19 and in school (K-12) full time 
• Any age if they developed a disability at age 21 or younger 

Medicare is federal health insurance for anyone age 65 and older, as well as for people under age 65 with certain disabilities or conditions.  

Things to Consider 

• Already drawing Social Security? 
  • You will be automatically enrolled in Medicare Parts A and B, unless you opt out.    
• Plan to decline Part B and enroll later? 
  • You will face a 10% late-enrollment penalty per year for each year you delayed, unless you have qualifying healthcare coverage from your (or your spouse’s) employer. 
• Not yet drawing Social Security? 
  • You should apply for Part B 1-3 months before turning 65. 
     

The Four Parts of Medicare: 

1. Part A includes hospital insurance and helps pay for inpatient care at hospitals, skilled nursing facilities, and hospice. It also covers some outpatient home healthcare. Part A is free if you worked and paid Medicare taxes for at least 10 years. You may also be eligible because of your current or former spouse’s work. 
2. Part B is medical insurance that helps cover doctor and other healthcare provider services, outpatient care, home healthcare, durable medical equipment, and some preventive services. You will pay a monthly premium for Part B, depending on your income level. 

Parts A and B are also known as Original Medicare. You can use any doctor or hospital that takes Medicare, anywhere in the US. You can join a separate Medicare drug plan to get Medicare drug coverage (see Part D, below).  

1. Part C, or Medicare Advantage, is available through different providers. It’s an alternative to Parts A and B and bundles coverage types including Parts A, B, and usually D. It may include vision, hearing, and dental insurance. You’ll have different out-of-pocket costs than Original Medicare, including an additional premium. Medical providers need to be in the plan’s network to be covered. 
2. Part D offers prescription drug coverage. You must sign up for Part A or Part B before enrolling in Part D. If you are a TRICARE beneficiary enrolled in TRICARE For Life (TFL) your wraparound coverage is your supplemental drug coverage. You will have no premiums for prescription coverage. 

If you are TRICARE beneficiary, you must sign up for Medicare Part B at age 65 and provide verification of coverage when renewing your military ID card to continue with TFL, which is your wraparound coverage. You’ll pay a Medicare premium but will no longer have a TRICARE premium. Once enrolled in TFL, Medicare is the first payer on claims, then TFL. If you live outside the US, TRICARE will be your first payer as Medicare coverage is only in the US. 

Learn more: TRICARE and Medicare Turning Age 65 Brochure  

If you have health insurance coverage through an employer that you want to continue to use, you can delay signing up for Medicare. First, check with your employer’s Human Resources group to determine if they will allow coverage once you become Medicare eligible. Once you decide to enroll in Medicare, you will need to submit form CMS L564-R297 for verification of employer-covered health coverage to avoid a 10% late-enrollment penalty for each 12-month period, in addition to your Medicare premium.  

The VA typically does not bill Medicare, so you may need to submit claims yourself. Medicare pays for Medicare-covered items and services. The VA pays for VA-authorized items or services in a VA or non-VA facility. If the VA authorizes services in a non-VA hospital but didn’t authorize all the services you get during your hospital stay, then Medicare may pay for any Medicare-covered services the VA didn’t authorize. You may be eligible for drug coverage through the VA. You may also join a Medicare drug plan, but if you do, you can’t use both types of coverage for the same drug at the same time. In addition, you won’t be able to use the Department of Veteran Affairs “Meds by Mail” program.  

Three months before your 65th birthday, you can begin the proceSocial Security to sign up for Medicare. You can also call 1-800-772-1213 (Mon-Fri, 8am-7pm), or visit your local SSA office to sign up. You will need to provide: 

Basic personal information: 

• Social Security number 
• Where you were born (city, state, country) 
• Proof of U.S. Citizenship or lawful residency  
• Employment information (for you or your spouse, if still working)  
• Start and end dates for any current group health plans 
• Start and end dates for any group health plans after age 65 

Health insurance information: 

If you sign up for Medicare to begin at age 65, but are not yet drawing Social Security benefits, you’ll pay your Medicare premium to Social Security quarterly. Once you begin drawing Social Security benefits, your Medicare premium is deducted from your Social Security benefit. If you decide to draw your Social Security benefit at age 65 so that your Medicare premium can be deducted and eliminate having to pay out of pocket, your Social Security benefit will be permanently reduced for you and your survivors.