Karen Minn
Deciding when to begin Social Security benefits is a major financial decision for future retirees. Whether you claim at 62, wait until 67 (full retirement age), or delay until 70, the timing directly impacts your monthly benefit amount and lifetime earnings.
Choosing the optimal age requires evaluating your health, work status, financial needs, and retirement goals.
Comparing Social Security Benefits by Age
| Claiming Age | Percentage of Full Benefit | Monthly Benefit Example (FRA = $2,000) | Key Considerations |
|---|---|---|---|
| 62 | ~70% | $1,400 | Earlier access, lower monthly payment |
| 67 (FRA) | 100% | $2,000 | Full benefit, no earnings limit |
| 70 | ~124% | $2,480 | Delayed credits increase benefit amount |
Claiming at Age 62
Pros:
- Immediate access to benefits
- Helpful if you’re no longer working or face health issues
- Receive benefits over a longer period
Cons:
- Permanent reduction of about 30% from your full benefit
- Lower spousal and survivor benefits
- Earnings limit may reduce benefits if you continue working
Claiming at Full Retirement Age (67)
Pros:
- Full monthly benefit
- No earnings penalty—work and claim freely
- Balanced option for most retirees
Cons:
- Fewer years to receive benefits compared to early claiming
- No extra benefit unless you delay further
Claiming at Age 70
Pros:
- Earn delayed retirement credits of 8% per year past age 67
- Maximize lifetime monthly income
- Stronger survivor benefits for your spouse
Cons:
- Delayed access—requires other income sources
- May not be worthwhile if health or lifespan is a concern
Earnings Limits Before FRA
If you claim before reaching full retirement age and still work, there’s a limit to how much you can earn without reducing your Social Security check.
- Under FRA: Annual earnings cap is $23,400. Exceeding it reduces your benefit by $1 for every $2 earned over the limit.
- In the year you reach FRA: Limit rises to $62,160, with a $1 reduction for every $3 earned over it.
- At FRA or later: No earnings limit.
Delayed Retirement Credits – The Boost After 67
Every year you delay Social Security past your FRA, you get a monthly benefit increase of ~8%, maxing out at age 70. That means a $2,000 benefit at 67 becomes roughly $2,480/month at age 70—an increase of $480 per month for life.
Key Factors to Consider
Health & Life Expectancy
- Shorter life expectancy? Claiming early may yield more lifetime value.
- Expect to live past your 80s? Delaying often results in higher lifetime benefits.
Employment
- Still working past 62? Waiting until FRA or later helps avoid benefit reduction due to income.
Spousal & Survivor Benefits
- Delaying can ensure higher payments for your surviving spouse, especially if you’re the higher earner.
Other Retirement Income
- Have a pension, 401(k), or investments? You may be able to delay Social Security to increase long-term income.
Break-Even Analysis
A break-even analysis compares lifetime earnings at different claiming ages. Typically:
- Claiming at 62 yields more income if you die before your late 70s.
- Claiming at 70 yields more income if you live past 80–82.
Everyone’s break-even point differs—so evaluate based on your own life expectancy and needs.
There’s no universal “best age” to claim Social Security. Choosing 62, 67, or 70 depends on your personal health, income needs, work situation, and long-term goals. Early access offers quick support but less income.
Waiting till FRA balances access and payment. Delaying to 70 maximizes payouts but requires financial flexibility. Run the numbers, understand your circumstances, and make a decision that secures your retirement with confidence.
FAQs
Does delaying Social Security beyond 67 really make a difference?
Yes. Your monthly benefit can increase by up to 24% if you delay until age 70, thanks to delayed retirement credits.
Can I change my mind after claiming at 62?
You may withdraw your application within 12 months of first claiming, but you must repay all benefits received.
Will working after 62 reduce my Social Security payments?
Yes—if you earn over the annual limit, your benefits are temporarily reduced until you reach full retirement age.