When it comes to retirement, one of the most crucial financial decisions Americans face is when to start collecting Social Security benefits. The age you choose to begin receiving benefits can significantly impact the amount you’ll get monthly — and over your lifetime. While you can start as early as age 62, waiting until full retirement age (FRA) — or even until age 70 — often leads to higher monthly payments.
This article breaks down how much you can expect to receive from Social Security depending on whether you start at age 62, 67, or 70, and explains the pros and cons of each option.
Understanding Full Retirement Age (FRA)
Your full retirement age is the age at which you’re eligible to receive 100% of your Social Security benefits. For most Americans today, FRA is 67. If you were born before 1960, your FRA may be slightly lower (between 65 and 66 and a few months).
However, you can begin collecting benefits as early as 62 — though at a reduced rate — or delay until age 70, which earns you increased monthly benefits through delayed retirement credits.
Social Security Benefit Estimates by Age
To help illustrate the difference, the Social Security Administration (SSA) offers examples based on your full benefit amount at FRA. Let’s say your Primary Insurance Amount (PIA) — the amount you’d receive at age 67 — is $2,000 per month. Here’s how benefits vary based on your claiming age:
| Claiming Age | Monthly Benefit | Percentage of FRA Benefit |
|---|---|---|
| Age 62 | $1,400 | 70% |
| Age 67 | $2,000 | 100% |
| Age 70 | $2,480 | 124% |
Claiming at Age 62: Early but Lower
Starting Social Security at 62 is tempting, especially if you’re retiring early or need the money. However, your benefit will be permanently reduced — by about 30% if your FRA is 67.
Pros:
- Immediate access to income.
- Useful if you have health concerns or shorter life expectancy.
- Reduces pressure on retirement savings early on.
Cons:
- Smaller monthly payments for life.
- Less protection against outliving your money.
- Reduction applies even if you go back to work.
Claiming at Age 67: Full Retirement
Waiting until your full retirement age (67) means you get your full benefit amount with no reductions. It’s the “break-even” point the SSA uses to determine your normal benefits.
Pros:
- Full monthly benefit.
- Better long-term value if you live an average lifespan or longer.
- No penalty for working after reaching FRA.
Cons:
- You must wait five more years compared to claiming at 62.
- Could mean drawing more from savings early on.
Claiming at Age 70: Bigger Checks for Life
If you delay Social Security past your FRA, your benefit increases by about 8% per year until age 70. For someone with a $2,000 FRA benefit, waiting until 70 would increase their monthly check to $2,480, a 24% boost.
Pros:
- Maximizes monthly benefit.
- Great protection against inflation and longevity risk.
- Ideal for those with long life expectancy or family history of longevity.
Cons:
- Must wait eight years after age 62.
- May need to rely heavily on savings in the meantime.
- If you pass away earlier than expected, you might collect fewer total dollars.
Total Lifetime Benefits: It Depends on How Long You Live
Here’s the key question: Will waiting pay off? That depends on how long you live. If you live into your 80s or 90s, delaying benefits often results in more total income. But if you die younger, you may receive less overall by waiting.
As a general rule:
- Break-even age for delaying from 62 to 67 is around 77–78.
- Break-even age for delaying from 67 to 70 is around 81–82.
So, if you’re healthy and expect a longer life, delaying could be the smarter move. But if you need the money now or have health issues, claiming earlier might make sense.
Strategies to Maximize Benefits
- Work at least 35 years: Benefits are based on your highest 35 years of earnings.
- Delay if possible: Especially if you’re in good health and can afford to wait.
- Coordinate with a spouse: Spousal strategies can boost combined household benefits.
- Avoid earning limits before FRA: If you claim early and work, your benefits may be reduced.
Final Thoughts
Choosing when to start Social Security is one of the most personal financial decisions you’ll make. While claiming early gives you quicker access to cash, delaying can secure a higher monthly income for life. The key is to weigh your health, finances, work plans, and life expectancy to make the best choice.
No matter what age you choose, understanding the trade-offs will help you retire with more confidence and stability.
This article was written by Gina Stanley. AI was used lightly for grammar and formatting, but the ideas, words, and edits are all mine.