The Best Age to Start Claiming Social Security: What You Should Consider

Deciding when to start claiming Social Security benefits is one of the most important financial choices you'll make in retirement. While you can begin collecting benefits as early as age 62, waiting until your full retirement age (FRA) or even delaying until age 70 can significantly impact your monthly income. The right decision depends on your financial situation, health, and long-term goals. Let’s break down the pros and cons of each option to help you make an informed choice.

Claiming Social Security Early (Age 62–FRA)

If you choose to start receiving benefits as soon as you become eligible at age 62, your monthly payments will be permanently reduced compared to what you would receive at full retirement age. However, there are some advantages to claiming early.

Pros:

✔ Immediate access to funds, which can be helpful if you need financial support sooner rather than later.

✔ More years of receiving payments, which may benefit those with health concerns or a shorter life expectancy.

✔ Allows you to preserve other retirement savings if Social Security can cover necessary expenses.

Cons:

✖ Reduced monthly benefits—up to a 30% reduction compared to claiming at full retirement age.

✖ If you continue working while collecting benefits before FRA, your payments may be temporarily reduced due to the Social Security earnings limit.

✖ Potentially less financial security later in retirement when healthcare costs and other expenses might increase.

Claiming at Full Retirement Age (FRA)

Your FRA depends on your birth year but is generally between 66 and 67 for those retiring today. Claiming at this age means you receive 100% of the benefit you’ve earned.

Pros:

✔ No reduction in monthly benefits, providing a more stable income throughout retirement.

✔ No earnings limit if you continue to work, meaning you can collect your full benefit while earning additional income.

✔ A balanced approach that offers a steady income without sacrificing too many years of payments.

Cons:

✖ Delaying until FRA means missing out on years of potential benefits.

✖ If you have health concerns or a shorter life expectancy, you may not maximize your total lifetime benefits.

Delaying Benefits (Beyond FRA to Age 70)

If you wait beyond your FRA to claim Social Security, your benefits will increase by about 8% per year up until age 70. This means you can receive significantly higher monthly payments for the rest of your life.

Pros:

✔ Higher monthly benefits, which can provide greater financial security in later years.

✔ Ideal for those in good health who anticipate a longer retirement.

✔ Maximizes lifetime benefits if you live into your late 80s or beyond.

Cons:

✖ Requires other income sources to cover expenses until you start collecting benefits.

✖ If you pass away earlier than expected, you may not fully benefit from the delayed higher payments.

✖ May not be necessary if your other retirement income sources are already sufficient.

Making the Right Choice for You

There’s no one-size-fits-all answer when it comes to the best age to start claiming Social Security. Here are a few key questions to consider:

• Do you need the income now, or can you afford to wait?

• Are you in good health, and do you have a family history of longevity?

• Will you continue working, and how will that impact your benefits?

• Do you have other retirement savings or pensions that can support you while you delay?

Social Security is just one piece of your overall retirement strategy. Before making a decision, it’s wise to consult with a financial advisor who can help assess your specific situation and create a plan that aligns with your long-term goals.

Final Thoughts

Choosing when to claim Social Security is a personal decision that depends on your financial needs, health, and retirement goals. While claiming early provides immediate access to benefits, delaying can significantly increase your monthly payments. Weigh the pros and cons carefully to make the best choice for your unique circumstances. If you need guidance, we’re here to help you navigate your retirement planning with confidence.