You’ve worked hard, paid into Social Security for decades and can almost taste the freedom of retirement. But one decision — when to claim your benefits — could mean the difference between traveling with your grandkids or tightening your belt for the rest of your life.
All that considered, claiming Social Security too early can shrink your retirement income by thousands of dollars a year. Many Americans seem unsure about when to start drawing from their benefits to supplement their income during their golden years.
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Picking the wrong age to retire could mean shortchanging yourself for decades. But when is the right time to claim Social Security? The answer comes down to one surprisingly simple but deeply personal factor: how long you expect to live.
Two-thirds of surveyed Americans said they would pay more attention to their finances if they knew more about their longevity needs, according to a recent Nationwide Retirement Institute survey. That suggests many lack crucial knowledge about the best time to claim Social Security or maximize benefits.
Why life expectancy matters more than most people think
The government lets you claim Social Security as early as 62. But the longer you wait — up to age 70 — the more you get every month. Your full retirement age, where you receive 100% of your benefit, is currently between 66 and 67, depending on your birth year.
Here’s how that plays out. If you claim Social Security at age 62, your monthly check could be reduced by up to 30%. If you wait until 70, you could increase your monthly benefit by 24% or more compared to claiming at full retirement age.
That math makes delaying sound like a no-brainer, but it only pays off if you live long enough to collect the extra money.
The Social Security Administration says the average life expectancy at 65 in 2024 was 20.9 more years for women and about 18.3 more years for men. Using those numbers, the breakeven point — when delaying starts to net you more money — typically falls between 77 and 80. Live beyond that, and waiting means more lifetime income.
But that’s the tricky part: nobody knows exactly how long they’ll live.
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When do most Americans actually retire?
Despite the financial benefits of delaying, most Americans retire far earlier. The U.S. Census Bureau says the average retirement age for men is 65, and for women, it’s about 62. If many of those retirees take Social Security around that time, they lock in reduced benefits for life.
Why do they do it? Some need the money. Others don’t realize the long-term impact. Often, it’s because they haven’t considered the question that may matter most: What if I live longer than expected?
First, consider your health and family history. If your parents lived into their 80s or 90s and your health is solid, it might make sense to delay claiming to maximize lifetime benefits.
Second, check your savings. Can you bridge the gap until 67 or even 70 without tapping into Social Security? If so, the higher monthly check might be worth the wait.
And remember to factor in your spouse. For married couples, delaying the higher earner’s benefit can significantly boost survivor benefits if one spouse passes away.
Finally, don’t forget other income sources. Social Security is just one piece of the retirement puzzle. A strong 401(k), IRA or pension can give you the breathing room to delay claiming.
Is there a magic number to retire comfortably?
It depends on your lifestyle, but a common rule of thumb is that you’ll need 70% to 80% of your pre-retirement income to maintain your standard of living.
Fidelity recommends saving 10–12 times your final salary by the time you retire. If you earn $75,000 a year, that means a nest egg of $750,000 to $900,000.
Not there yet? That’s OK. Just don’t let panic force your hand. A smaller retirement fund doesn’t automatically mean you should grab Social Security early. It might mean tightening your budget or working a few more years to grow your benefits.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
