The question of when to claim Social Security is one of the most important financial decisions most Americans will make. Choosing to claim benefits at age 62 versus age 70 can result in a difference of hundreds of thousands of dollars over your lifetime. Yet despite the magnitude of this decision, many people claim without fully understanding how timing affects their benefits.
The Social Security Administration allows you to begin collecting retirement benefits as early as age 62 or as late as age 70. Each year you wait increases your monthly benefit, but it also means fewer years of collecting payments. Finding the optimal balance requires understanding how the system works and honestly assessing your personal circumstances.
This guide explains how claiming age affects your benefits, walks through the factors you should consider when making this decision, and helps you think through which strategy might work best for your situation.
Table of Contents
- How Does Claiming Age Affect Your Monthly Benefit?
- What Happens If You Claim at Age 62?
- What Is Full Retirement Age and Why Does It Matter?
- What Are the Benefits of Waiting Until Age 70?
- Understanding Social Security Breakeven Points
- How Should Health Affect Your Decision?
- When Does Your Financial Situation Favor Early Claiming?
- How Should Married Couples Coordinate Claiming?
- Can You Work While Collecting Social Security?
- How to Make Your Claiming Decision
- Frequently Asked Questions
How Does Claiming Age Affect Your Monthly Benefit?
Social Security calculates your Primary Insurance Amount (PIA) based on your work history. This is the benefit you would receive if you claimed exactly at your full retirement age (FRA). Claiming before or after FRA adjusts your actual monthly benefit up or down from this baseline.
For every month you claim before your FRA, your benefit is reduced. The reduction is 5/9 of 1% per month for the first 36 months before FRA, and 5/12 of 1% per month for any additional months. If your FRA is 67 and you claim at 62, that’s 60 months early, resulting in a 30% permanent reduction.
Conversely, for every month you delay past FRA up to age 70, you earn delayed retirement credits of 2/3 of 1% per month, or 8% per year. Waiting from age 67 to 70 adds 24% to your benefit permanently.
The chart above illustrates how your monthly benefit changes based on claiming age for someone with an FRA of 67. A person who would receive $2,000 at FRA would get only $1,400 claiming at 62 but would receive $2,480 waiting until 70. These adjustments are permanent and affect every payment for the rest of your life.
What Happens If You Claim at Age 62?
Claiming at 62 is the most common choice. Approximately one-third of Americans begin their Social Security benefits at the earliest possible age. This choice makes sense in certain situations but comes with significant trade-offs.
The Early Claiming Reduction
If your FRA is 67, claiming at 62 reduces your benefit by 30%. This isn’t a temporary reduction that disappears later; it’s a permanent adjustment to your monthly payment. Your benefit will receive annual cost-of-living adjustments (COLAs), but they’re applied to the reduced amount.
When Early Claiming Makes Sense
- Health concerns: If you have a serious health condition that may shorten your life expectancy, claiming early ensures you receive some benefits.
- Immediate financial need: If you’ve lost your job and can’t find new employment, Social Security may be necessary to cover basic expenses.
- Spouse will claim on your record: In some strategies, having the lower earner claim early provides household income while the higher earner delays.
- You have other assets to draw down later: Some retirees claim early to preserve other investments, planning to use different assets later in retirement.
Risks of Early Claiming
- Longevity risk: If you live into your late 80s or 90s, you’ll receive significantly less over your lifetime than if you had delayed.
- Lower survivor benefits: If you’re married, your spouse’s survivor benefit will be based on your reduced amount.
- Earnings test: If you continue working before FRA, benefits may be temporarily withheld if you earn above certain limits.
What Is Full Retirement Age and Why Does It Matter?
Full retirement age (FRA) is the age at which you’re entitled to 100% of your calculated benefit. It varies based on your birth year and is gradually increasing due to 1983 Social Security reforms.
Full Retirement Age by Birth Year
- 1943-1954: Age 66
- 1955: Age 66 and 2 months
- 1956: Age 66 and 4 months
- 1957: Age 66 and 6 months
- 1958: Age 66 and 8 months
- 1959: Age 66 and 10 months
- 1960 and later: Age 67
Claiming at FRA means you receive exactly what your work history entitles you to, with no reductions and no delayed credits. For many people, this represents a reasonable middle ground between getting money sooner and maximizing the monthly amount.
What Are the Benefits of Waiting Until Age 70?
Waiting until age 70 maximizes your monthly benefit. The 8% annual increase from delayed retirement credits represents one of the best guaranteed returns available in financial planning. No other investment offers a comparable risk-free return.
Advantages of Delayed Claiming
- Higher lifetime income if you live long: The breakeven point for delaying from 67 to 70 is typically around age 82-83. If you live beyond this age, you come out ahead.
- Maximum survivor benefit: For married couples, the higher earner’s delayed benefit becomes the survivor benefit, protecting the surviving spouse.
- Inflation protection: COLAs are applied to your higher base benefit, meaning the dollar difference between claiming early and late grows over time.
- Insurance against longevity: A higher guaranteed income reduces the risk of running out of money in very old age.
When Delaying May Not Be Optimal
- Poor health: If life expectancy is limited, you may not live long enough to benefit from the higher payments.
- No other income sources: If you can’t fund living expenses without Social Security, theoretical optimization matters less than paying bills.
- Strong investment returns: If you can earn substantially more than 8% annually on investments (though this comes with risk), taking benefits early and investing might theoretically come out ahead.
Understanding Social Security Breakeven Points
The breakeven point is the age at which total lifetime benefits from delaying equal what you would have received by claiming earlier. Understanding these points helps frame the claiming decision in terms of longevity expectations.
The chart above compares total lifetime benefits under different life expectancy scenarios. Notice how the optimal choice changes based on how long you live. For those who die before age 80, claiming at 62 results in higher total benefits. For those who live into their 90s, delaying to 70 is clearly the better financial choice.
Typical Breakeven Ages
- 62 vs. 67: Breakeven around age 78-80
- 67 vs. 70: Breakeven around age 82-83
- 62 vs. 70: Breakeven around age 80-82
Average life expectancy for a 62-year-old in the United States is approximately 84 for men and 87 for women. This means the average person who delays benefits will come out ahead, though individual circumstances vary significantly.
How Should Health Affect Your Decision?
Your health status and family longevity patterns should significantly influence your claiming decision. While no one knows exactly how long they’ll live, you likely have some sense of whether you’re in better or worse health than average.
Factors Suggesting Earlier Claiming
- Diagnosed chronic conditions that typically reduce life expectancy
- Family history of shorter lifespans
- Lifestyle factors that increase health risks
- Already experiencing health limitations that affect quality of life
Factors Suggesting Later Claiming
- Excellent current health and no concerning conditions
- Parents and grandparents who lived into their 90s
- Active lifestyle with good diet and exercise habits
- Female (women statistically live longer than men)
When Does Your Financial Situation Favor Early Claiming?
While delaying generally increases lifetime benefits, practical financial needs sometimes override theoretical optimization.
Situations Where Early Claiming May Be Necessary
- Job loss: If you lose your job in your early 60s and can’t find new employment, Social Security may be essential for survival.
- Depleted savings: If your retirement savings are insufficient to bridge the gap to a later claiming age, you may have no choice.
- High-interest debt: Using Social Security to pay off costly debt might make sense even if it reduces lifetime benefits.
- Supporting dependents: If family members depend on you financially, income now may matter more than optimization.
When You Can Afford to Delay
- Sufficient retirement savings to cover expenses until you claim
- Part-time work income that covers living costs
- Spouse’s income or Social Security benefit providing household income
- Pension or other guaranteed income sources
How Should Married Couples Coordinate Claiming?
Married couples have opportunities to coordinate their claiming strategies for mutual benefit. The key insight is that when one spouse dies, the survivor receives only one benefit—the higher of the two. This makes the higher earner’s claiming decision especially important.
Common Coordination Strategies
- Higher earner delays, lower earner claims early: The lower-earning spouse claims first to provide household income while the higher earner delays to age 70, maximizing the eventual survivor benefit.
- Both delay if possible: If the couple can fund early retirement from savings, both waiting longer increases both benefits and the survivor benefit.
- Consider age gap: If there’s a significant age difference, the younger spouse may need to bridge more years before becoming eligible.
Survivor Benefit Considerations
When one spouse dies, the surviving spouse receives the higher of their own benefit or the deceased spouse’s benefit (including any delayed retirement credits the deceased earned). This makes delaying particularly valuable for the higher-earning spouse, as their delay protects the survivor.
Can You Work While Collecting Social Security?
Yes, but if you claim benefits before full retirement age and continue working, the earnings test may temporarily reduce your benefits.
How the Earnings Test Works
- Before FRA: In 2024, benefits are reduced by $1 for every $2 earned above $22,320
- Year you reach FRA: Benefits are reduced by $1 for every $3 earned above $59,520, but only earnings before the month you reach FRA count
- After FRA: No earnings test applies—you can earn unlimited amounts with no benefit reduction
Important note: The earnings test is not a permanent loss. Withheld benefits are credited back to you at FRA through a higher monthly payment. However, this adjustment process makes claiming while working before FRA more complex than it appears.
How to Make Your Claiming Decision
Making this decision requires honest assessment of your personal situation. Work through these steps to develop your claiming strategy.
Step 1: Know Your Numbers
Create a My Social Security account at ssa.gov and review your estimated benefits at different claiming ages. Understand what you’ll receive at 62, at your FRA, and at 70.
Step 2: Assess Your Health Honestly
Consider your current health status, family history, and lifestyle factors. Are you more or less likely than average to live into your late 80s or 90s?
Step 3: Calculate Your Income Needs
Estimate your retirement expenses and identify all income sources. Can you cover expenses without Social Security until a later claiming age? If not, what’s the minimum you need?
Step 4: Consider Your Spouse
If married, think about your claiming decision in the context of household strategy and survivor benefit protection. Discuss options together.
Step 5: Run Multiple Scenarios
Use online calculators to model different claiming ages and life expectancy scenarios. See how the numbers change based on different assumptions.
Final Thoughts
There is no universally correct age to claim Social Security. The optimal choice depends on your health, financial needs, family situation, and personal preferences. What matters most is making an informed decision rather than claiming by default without considering alternatives.
For most people in good health with adequate savings, delaying benefits produces higher lifetime income. For those with health concerns or immediate financial needs, earlier claiming makes sense. For married couples, protecting the survivor through the higher earner’s delayed claim often outweighs individual optimization.
Take time to understand your options, run the numbers for your specific situation, and make a decision that aligns with your actual circumstances and goals.
Frequently Asked Questions
Can I change my claiming age after I’ve applied?
Within 12 months of claiming, you can withdraw your application and repay all benefits received. This effectively resets your claim. After 12 months, you cannot undo your claim, but if you’ve reached full retirement age, you can voluntarily suspend benefits to earn delayed retirement credits on future payments.
Should I claim early and invest the money instead?
This strategy can work mathematically if investments earn more than about 6-8% annually. However, it involves market risk that Social Security’s guaranteed credits don’t. For risk-averse retirees, the certainty of delayed credits may be more valuable than potentially higher but uncertain investment returns.
Does the timing of my birthday within the year matter?
Yes, your first month of eligibility depends on your birth date. You must be 62 throughout the entire month to claim, so if your birthday is on the 2nd through 31st, you can’t claim until the following month. People born on the 1st of a month can claim in that birthday month.
If I’m divorced, when should I claim?
If you were married at least 10 years and are currently unmarried, you may claim on your ex-spouse’s record. Your timing decision involves similar trade-offs to anyone else. You can claim reduced benefits on your ex-spouse’s record as early as 62, or wait for higher benefits. Your claim doesn’t affect your ex-spouse’s benefits or require their involvement.
What if I claim early and then my health improves unexpectedly?
Unfortunately, early claiming reductions are permanent (outside the 12-month withdrawal window). This is why the decision requires careful thought. If you claimed based on poor health prognosis and then live longer than expected, you’ll receive the reduced benefit for your entire life.
Does claiming age affect my Medicare eligibility?
No. Medicare eligibility begins at age 65 regardless of when you claim Social Security. You can claim Social Security at 62 without Medicare, or delay Social Security past 65 while receiving Medicare. The two programs operate independently regarding eligibility.