TL;DR:

• Claiming at 62 means smaller checks for life (up to 30% less).
• Claiming at full retirement age (66–67) gives you 100% of your benefit.
• Waiting until 70 maximizes benefits with about 8% growth per year after FRA.
• Health, longevity, work status, taxes, and spousal benefits all affect the right timing.
• There is no one-size-fits-all answer – the best strategy depends on your unique situation.

 

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Deciding when to claim Social Security retirement benefits is one of the most important financial choices you will ever make. The timing directly affects your monthly check, your lifetime income, and in many cases, survivor benefits for a spouse. There is no single “right” age that works for everyone. Instead, the best choice depends on your age, health, financial needs, work status, and long-term goals.

As a Registered Social Security Analyst (RSSA), I help clients weigh these factors carefully so they can approach retirement with confidence. This guide will walk you through the key considerations, backed by the facts from the Social Security Administration and other trusted resources.

 

The Earliest You Can Claim: Age 62

The first year you can begin collecting retirement benefits is age 62. Many Americans choose this option because they want to access income as soon as possible, especially if they plan to stop working.

However, there is a trade-off: claiming early means your monthly benefit will be permanently reduced. According to the Social Security Administration, if your full retirement age (FRA) is 67, claiming at 62 cuts your benefit by about 30%. This reduction lasts for the rest of your life.

Why the reduction? The system is designed to pay roughly the same lifetime amount whether you claim early or late, assuming you live an average lifespan. By claiming early, you’re expected to collect more checks over time, so each one is smaller.

This option may make sense if:

• You have health concerns that limit life expectancy.
• You need the income to cover living expenses.
• You do not plan to continue working.

But if you expect to live well into your 80s or 90s, this early reduction can significantly decrease lifetime income.

 

Full Retirement Age (FRA): The Standard Benchmark

Your full retirement age is the point at which you qualify for your full, unreduced benefit. FRA depends on the year you were born:

• Born 1943–1954: FRA is 66.
• Born 1955–1959: FRA gradually increases to 66 and 10 months.
• Born 1960 or later: FRA is 67.

At FRA, you receive 100% of your Primary Insurance Amount (PIA), which is the benefit calculated from your top 35 years of earnings. Claiming at this age is often considered a “neutral” choice – it avoids early reductions but does not maximize potential delayed credits.

FRA also matters for another reason: if you claim before FRA and continue working, your benefits may be temporarily reduced if your earnings exceed the annual earnings limit ($22,320 in 2024; indexed annually). After FRA, the earnings limit disappears, and you can work and earn freely without reducing benefits.

 

Delaying Benefits Beyond FRA: Age 70 Maximize Strategy

You can choose to delay benefits beyond your full retirement age, up to age 70. For every year you wait, your benefit increases by about 8% annually, thanks to Delayed Retirement Credits.

That means someone with a $2,000 monthly benefit at FRA could receive around $2,480 per month at age 70 – a permanent increase of 24%. Over a long retirement, this increase adds up to hundreds of thousands of dollars in additional income.

Delaying may be especially valuable if:

• You expect to live into your 80s or beyond.
• You want to maximize survivor benefits for a spouse.
• You have other income sources that can cover expenses until age 70.

Importantly, benefits do not continue to grow beyond 70. That’s the ceiling.

 

How Health and Longevity Influence the Decision

One of the most personal factors is your expected longevity. If you face serious health concerns, claiming earlier may make sense. If your family history suggests long life expectancy, waiting could significantly increase your lifetime payout.

For context, according to the Social Security Administration’s actuarial tables, the average life expectancy for a 65-year-old today is:

• Men: around age 84.
• Women: around age 87.

But many live well into their 90s. The longer you live, the more delaying benefits pay off.

 

How Work Status and Income Needs Play a Role

If you plan to continue working past age 62, claiming early may backfire. Before FRA, Social Security reduces benefits if your earnings exceed annual limits. For 2024, the limit is $22,320. You lose $1 in benefits for every $2 you earn above that amount. In the year you reach FRA, the limit is higher ($59,520), and the reduction is smaller. After FRA, there is no limit.

If you need steady income in retirement and don’t have other resources, claiming earlier may still be the practical choice. But if you have retirement savings, part-time income, or other pensions, waiting can provide higher guaranteed income later.

 

Spousal and Survivor Benefits

Even if you focus on your own benefit, it’s important to consider how your decision impacts your spouse.

• Spousal benefits: A lower-earning spouse can claim up to 50% of the higher earner’s benefit, but only if the higher earner has claimed their own benefit.
• Survivor benefits: A surviving spouse can receive the deceased spouse’s benefit amount. That means delaying your own benefit could increase the survivor benefit for your spouse.

This is especially important in households where one spouse has significantly higher lifetime earnings.

 

Tax Considerations for Social Security

Social Security benefits may be subject to federal income tax, depending on your combined income (adjusted gross income + nontaxable interest + half of Social Security benefits):

• If combined income is below $25,000 (single) or $32,000 (married filing jointly), benefits are generally tax-free.
• If income is between $25,000–$34,000 (single) or $32,000–$44,000 (married), up to 50% of benefits may be taxable.
• Above those thresholds, up to 85% of benefits may be taxable.

Some states also tax Social Security, though many do not. Planning when to claim can help manage tax exposure in retirement.

 

Common Mistakes to Avoid

1. Claiming too early without considering longevity. Many people file at 62 without realizing how much they’re giving up.
2. Overlooking the earnings test. If you keep working while collecting before FRA, benefits may be reduced.
3. Ignoring spousal coordination. Couples often maximize household benefits by staggering their claiming ages.
4. Forgetting about survivor benefits. Your decision affects not only you but also your spouse if you pass away first.
5. Not factoring in taxes. Higher income in retirement may make benefits taxable.

 

Key Takeaways

• 62: Earliest claim, reduced benefit.
• FRA (66–67): Full, unreduced benefit.
• 70: Maximum benefit through delayed credits.

The best choice depends on your health, work status, financial needs, and family situation. There is no universal “right” answer – only the right answer for you.

 

Next Step: Get Expert Guidance

The decision about when to claim Social Security can feel overwhelming. It’s a choice that affects not just your income but your entire retirement outlook. That’s why working with a professional makes sense.

Contact The Balance Sheet today. Our team of Registered Social Security Analysts (RSSAs) will guide you through your options, run the numbers for your unique situation, and help you make the most informed decision for your financial future.