When it comes to Social Security, timing can make a big difference. Many Americans start thinking about claiming their Social Security benefits as they approach retirement age. But what’s the best age to start? Should you begin collecting at 62, wait until 67, or hold off until 70?
Each of these ages comes with its own pros and cons. The decision depends on your financial needs, health, life expectancy, and work situation. In this article, we break down what you need to know to help you get the most out of your Social Security benefit.
Claiming Social Security at Age 62
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Age 62 is the earliest you can claim Social Security retirement benefits. It’s a popular choice – around 30% of Americans start their benefits at this age. But there’s a trade-off: you receive less each month.
Here’s why – 62 is before your “full retirement age” (FRA), which is around 66 or 67 for most people today. Claiming early means your benefit is reduced permanently. On average, you’ll receive about 30% less than what you would have gotten at your full retirement age.
Still, some people choose this route because:
- They need the money sooner
- They’re no longer working
- They have health concerns and don’t expect to live long into retirement
It can also work well for those who want to enjoy their early retirement years and don’t mind the reduced payments.
Claiming at Full Retirement Age (67 for Most)
For people born after 1960, the full retirement age is 67. If you wait until this age to start your benefits, you’ll receive 100% of your earned Social Security amount.
This is often considered the “safe” option:
- No penalties or reductions apply
- You get the amount you’ve earned over your working years
- It’s a good balance for those who can afford to wait a bit longer
For many, 67 is a sweet spot – not too early, not too late. It also allows you to keep working and earn more while still planning for a stable retirement.
Waiting Until Age 70 – The Maximum Benefit
If you can wait until age 70, your Social Security check gets a significant boost.
For every year you delay beyond your full retirement age, your benefit increases by about 8% per year, up until age 70. This can mean up to 32% more in monthly payments compared to claiming at 67 – and nearly 77% more than claiming at 62.
Reasons people delay until 70 include:
- They have a longer life expectancy
- They’re still working and don’t need the money yet
- They want to ensure a higher monthly income for later years
Delaying can be a powerful tool for increasing lifetime income, especially if you live well into your 80s or 90s.
What’s the Best Age for You?
There’s no one-size-fits-all answer. Here are a few things to consider:
- Need cash now? Claiming at 62 might be right for you.
- Want the full benefit? Waiting until 67 could work best.
- Want to maximise monthly income? Hold out until 70 if possible.
If you’re unsure, you can use the Social Security Administration’s online calculator to estimate your benefits at different ages. Also, talk to a financial advisor for personalised advice.
Final Thoughts
Social Security is a major part of retirement income for most people. Whether you choose to claim at 62, 67, or 70, the key is to understand how the timing affects your monthly check – and your long-term financial health.
Planning ahead and making an informed decision now can help you enjoy a more secure and stress-free retirement.
