Want the Most from Social Security: For millions of Americans planning for retirement, the question looms large: “When is the best age to claim Social Security benefits?” According to U.S. government officials and seasoned financial advisors, the golden answer is clear—retire at age 70 if you want the maximum monthly payout and a more financially secure retirement.
While it might be tempting to start collecting benefits as soon as you’re eligible at age 62, this early decision can cost you tens of thousands of dollars over your lifetime. Social Security is designed to reward patience—delaying your benefits until age 70 can significantly increase your monthly income, offering a stable and higher retirement check for the rest of your life.
Want the Most from Social Security?
| Feature/Detail | Summary |
|---|---|
| Best Age to Retire | 70 (to maximize Social Security benefits) |
| Earliest Age to Claim | 62 (but with reduced benefits) |
| Full Retirement Age (FRA) | 66-67 (depending on birth year) |
| Monthly Increase After FRA | ~8% per year until 70 |
| Reduction if Claimed at 62 | Up to 30% lower than FRA benefits |
| Source | Social Security Administration (SSA) |
While everyone’s financial journey is unique, waiting until age 70 to claim Social Security offers the most secure and rewarding benefit. It’s a powerful way to increase your retirement income, build financial stability, and protect your future.
Why Age 70 Is Considered the “Golden Age”
The Social Security Administration (SSA) allows retirees to begin claiming benefits at age 62. However, this comes with a permanent reduction in monthly payments. Your Full Retirement Age (FRA)—which is between 66 and 67, depending on your birth year—is when you’re entitled to receive 100% of your benefits. Waiting until age 70 can increase those benefits by approximately 8% for each year you delay past your FRA.
Example:
Let’s say your FRA benefit is $2,000 per month:
- At 62: You’d receive about $1,400/month
- At 67: You’d receive the full $2,000/month
- At 70: You’d receive about $2,480/month
That’s an increase of over $1,000 more per month compared to retiring early at 62, especially when accounting for cost-of-living adjustments (COLAs) that the SSA applies annually.
Over the course of a 20- to 30-year retirement, this can add up to hundreds of thousands of dollars in additional income.
How Social Security Benefits Are Calculated
Your Social Security benefit amount is based on your highest 35 years of earnings, adjusted for inflation. If you’ve worked fewer than 35 years, the SSA uses zero-income years in your calculation, which can significantly reduce your benefit amount.
Delaying retirement gives you the opportunity to replace lower-income or zero-income years with higher-earning ones, especially if you’re earning more late in your career.
💡 Tip: Use the Social Security Retirement Estimator to get an accurate view of your potential benefits.
Practical Benefits of Waiting Until 70
1. Larger Monthly Payments for Life
Waiting to claim means locking in a larger monthly payment for the rest of your life. This can help with rising costs, healthcare, and living expenses in retirement.
2. Higher Survivor Benefits
If you’re married, delaying your benefits can mean higher survivor benefits for your spouse. If you pass away first, your surviving spouse may receive your higher monthly amount.
3. Longevity Insurance
Living into your 80s or 90s is increasingly common. The longer you live, the more valuable the higher monthly benefit becomes. It’s like insurance against outliving your savings.
4. Compounding Cost-of-Living Adjustments (COLAs)
COLAs are based on your benefit amount. A higher starting benefit will result in higher annual adjustments, giving you more spending power over time.
When Taking Benefits Early Might Make Sense
Not everyone can or should wait until 70. There are valid situations where claiming earlier is the smarter choice.
Consider taking Social Security early if:
- You have significant health issues or a shorter life expectancy
- You need immediate income for basic living expenses
- You’re no longer working and have limited savings
- You’re the lower earner in a married couple and want to start a spousal strategy
Even if you claim early, your spouse may still delay theirs to optimize joint retirement income.
🔍 Important: Don’t decide based on fear or guesswork. Talk to a certified financial planner to evaluate your long-term options.
Strategies for Claiming Social Security Wisely
1. Coordinate With Your Spouse
Couples have unique claiming strategies. One common strategy is for the lower-earning spouse to claim early, while the higher earner delays. This approach can balance income needs while optimizing future survivor benefits.
2. Work Longer If Possible
Working longer doesn’t just increase your savings. It can also raise your Social Security payout by replacing lower-earning years and increasing your average earnings.
3. Avoid the Earnings Penalty
If you claim before FRA and continue working, your benefits could be temporarily reduced. For 2024, you lose $1 for every $2 earned over $22,320. Once you reach FRA, those withheld benefits are recalculated, but they may not fully make up the difference.
4. Use Other Savings First
It might be smart to use funds from your IRA or 401(k) before claiming Social Security. This allows your benefits to grow, potentially giving you a better long-term income stream.
5. Consider Tax Implications
Up to 85% of your Social Security benefits can be taxable, depending on your income. Managing withdrawals from retirement accounts can help minimize taxes on your benefits.
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FAQs About Want the Most from Social Security?
What is Full Retirement Age (FRA)?
Full Retirement Age varies based on your birth year. For those born after 1960, it’s 67. That’s when you qualify for 100% of your Social Security benefit.
Can I work while receiving Social Security?
Yes, but if you’re under your FRA and earn over the limit, your benefits may be reduced. For 2024, the limit is $22,320. After reaching FRA, there’s no earnings cap.
Is Social Security taxable?
Yes. Depending on your income, up to 85% of your benefits can be taxed. This usually applies to individuals with income over $25,000 or married couples earning over $32,000. Check the IRS guidelines for more details.
Can I change my mind after claiming?
Yes, but only once. If it’s been less than 12 months since you started benefits, you can withdraw your application and repay what you’ve received. You can then reapply later to claim a higher benefit.
What happens to my benefits if I die early?
If you pass away before receiving much in benefits, your surviving spouse or dependents may still benefit. Social Security offers survivor benefits to eligible family members.
