Deciding on an age to begin taking Social Security is one of the most important choices retirees will need to make. Your claiming age will affect your monthly income for the rest of your life, so it’s not a decision to be made lightly.
The longer you wait to begin taking benefits, the more you’ll receive each month. Filing at your full retirement age — which is age 67 for everyone born in 1960 or later — will earn you up to 30% more than what you’d receive by filing at 62. Delay benefits up to age 70, and you’ll earn an additional 24% to 32% on top of your full benefit.
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That can be a major incentive for many people to delay claiming. However, claiming as early as possible at 62 can sometimes be safer than waiting. Here’s why.
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What’s your breakeven age?
Social Security is designed so that, in theory, you should collect the same amount in benefits over a lifetime no matter what age you begin claiming. If you file early, you’ll receive smaller checks but more of them in total. By delaying, you won’t collect as many payments, but each one will be larger.
Your breakeven age, then, is the age at which the total amount you’d receive by delaying equals the total amount you’d collect by claiming early. Your exact breakeven point will depend on your unique situation, but it’s generally somewhere in your late 70s or early 80s — in line with the average lifespan among Americans.
This means that if you end up making it past your breakeven point, you could earn more over a lifetime by delaying benefits. But if you live a shorter-than-average lifespan, you might come out ahead by filing early.
While that makes sense on paper, real life can be unpredictable. Health issues can pop up unexpectedly for even the healthiest retirees, and if you’re delaying benefits, you’re essentially betting on your longevity. If you don’t end up living well into your 80s or beyond (or if health issues make it more difficult to enjoy your retirement), it’s possible you could regret waiting so long to take Social Security.
Claiming early can sometimes lead to a more fulfilling retirement
Taking benefits at 62 can help hedge your bets in a way. It could put you at a disadvantage if you end up living far past your breakeven age, as you’ll receive less in total from Social Security. But it can also help protect against the risk of unexpected illness wrecking your retirement.
The other perk of filing early is that if you change your mind, you have a couple of chances to reverse your decision.
Within 12 months of filing, you can withdraw your application. You’ll need to repay all of the money you’ve already received in benefits, but then you’re free to file again later. If that’s not an option, you can also suspend your benefits after you reach your full retirement age. Once you begin collecting checks again, you’ll receive larger payments.
Having the option for a do-over can be helpful for those who are on the fence about when to file. If you delay benefits until age 70 and then wish you’d filed earlier, you’re stuck with your decision.
When it makes sense to delay benefits
There’s no one-size-fits-all approach to Social Security, so while it may make sense for some people to file at 62, that won’t be the right answer for everyone. If money is going to be tight in retirement, it may make more sense to delay claiming.
The average benefit amount at age 62 is around $1,342 per month, according to 2024 data from the Social Security Administration. At ages 67 and 70, the averages are around $1,930 per month and $2,148 per month, respectively. That extra money can make a significant difference for those who might be struggling to save.
Again, when you choose to claim is a highly personal decision, and whether the extra time in retirement is worth the benefit reduction by filing early is up to you. But by considering the big picture and how your health might play into your decision, you can make the best choice for your retirement.
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