The age you begin claiming Social Security will affect your monthly benefit amount for the rest of your life, so it’s critical to make this decision carefully.
It can be a tough decision to make, however, because each situation is unique, and there’s no single correct answer as to when you should file. That said, research does suggest that one particular age might be better than others.
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The best age to take Social Security
You can file for benefits at age 62 or anytime after that, but waiting longer will result in larger payments each month. To receive the full benefit amount you’re entitled to based on your work history, you’ll need to wait until your full retirement age (FRA).
By filing at 62, your benefit amount will be permanently reduced by up to 30%. However, if you wait until after your FRA to file (up to age 70), you’ll receive your full benefit amount plus at least 24% extra each month for the rest of your life.
In 2019, researchers at United Income studied retirees’ claiming choices and how those decisions affected their lifetime income. They then used that data to determine how many people claimed benefits at the “optimal” time to maximize their income throughout retirement.
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Statistically speaking, filing for Social Security at ages 62 or 63 was the worst choice, as they were only the optimal decision for 6.5% of retirees. Meanwhile, around 57% of study participants could have earned more over a lifetime by waiting until age 70 to take benefits.
That extra money each month adds up, too. Researchers found that the average household misses out on around $111,000 worth of benefits by claiming at the sub-optimal age.
The case for still claiming early
Although the data may suggest that waiting until age 70 is best, that doesn’t necessarily mean it’s the right choice in all situations.
Delaying benefits is the best way to maximize your monthly income, and if that’s your primary goal, waiting until 70 may be the smartest move. But finances are only one part of the equation, and there are other factors to consider when deciding what age to file.
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For instance, though it’s not always the most pleasant topic to think about, it may be wise to consider your overall health. If you’re battling health issues or have certain illnesses in your family, sometimes filing early can be a good choice. You’ll receive less each month, but if you don’t expect to live well into your 80s or beyond, filing early will give you more time to enjoy your benefits.
Or perhaps you do expect to live a long and healthy life, but you have a robust retirement fund or are willing to make financial sacrifices. If spending as much time as possible in retirement is your primary goal, you may still choose to claim early despite receiving smaller checks.
What age is right for you?
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There’s no right or wrong time to take Social Security, as it will depend on your financial situation and personal preferences.
To decide when is best for you, consider your biggest priorities in retirement. If your savings are falling short and you want to maximize your monthly income, waiting until age 70 could help you earn hundreds of dollars more per month — which can be life-changing.
On the other hand, if retiring in your early 60s is your main goal, claiming early can make that more achievable. While you don’t have to start taking benefits as soon as you retire, Social Security often makes it easier to afford an earlier retirement. Just be sure you know how it will affect your monthly payments, then decide whether those smaller checks are a worthwhile sacrifice.
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When it comes to choosing what age to take Social Security, there may be a clear winner when it comes to finances. But it’s just as important to consider the big picture to decide which age is really best for your unique situation.
