Should You Claim Social Security at 62, 67, or 70? These Scenarios Might Surprise You

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What is the right time to claim Social Security? This is actually a much more complicated question than you might imagine. That’s because you can claim benefits any time between ages 62 and 70, and there are pros and cons to claiming at different ages. 

Let’s take a look at three of the most popular times when people claim their benefits to understand why you may want to claim at these specific ages, so you can make a more informed choice about what is right for you. 

Claiming Social Security at 62

The earliest possible age you can claim retirement benefits is 62, and that’s part of what makes it such a popular claiming age. Many people want to start their benefits as soon as possible in order to enable early retirement. Since a good number of people can’t retire without getting Social Security, accessing these benefits ASAP makes it possible to leave work and start enjoying life while you are still relatively young and healthy.

Claiming at 62 also has some other potential benefits as well. Since you are starting benefits as soon as you can, you don’t have to worry about living long enough to break even for the delay. Social Security is designed to try to equalize out lifetime benefits among early and late claimers, but some people who claim late hope they can game the system by living so long that they end up with more lifetime benefits. Sadly, there’s no guarantee of that working since you could pass away before you earn enough benefits later to make up for missed income. This isn’t a concern if you claim at 62. 

Of course, there is a very clear and obvious downside to claiming benefits at 62. The earlier you calim benefits, the smaller your monthly checks. You have a full retirement age (FRA), which is 67 for those born in 1960 or later. Each month you claim benefits before FRA reduces your check, so a claim at 62 will lead to a 30% cut to your standard benefit if you have an FRA of 67.  Plus, since 7 in 10 retirees end up with more lifetime income if they delay their benefits claim, you take a real chance of reducing the total Social Security you collect. 

Claiming Social Security at 67

Claiming Social Security benefits at 67 is a great option for many, because 67 is the full retirement age for those born in 1960 or later. If you claim at your FRA, you will get your standard benefit with no reduction for early filing and no increase for a delayed claim.

While you still have to live long enough to collect enough higher benefits to break even for passing up the income you could have collected between 62 and 70, this won’t take you as long as if you waited until 70. You can also enable an earlier retirement if you need your benefits to retire. And, unlike claiming at 62 (or at any time ahead of FRA), you aren’t going to worry about reducing benefits if you decide to work while collecting Social Security since you can work as much as you want and still get your full benefits once you’ve hit FRA. 

Finally, since you will have already turned 65, you’ll be eligible for Medicare before you claim benefits and won’t have to cover private health insurance without an employer to provide it for you after retirement. 

Claiming Social Security at 70

There aren’t a lot of retirees who wait until 70 to claim benefits, in large part because most people can’t retire without some Social Security income, and most people don’t want to wait until 70 to retire. However, if you can make it happen, claiming at 70 has some significant advantages.

When you claim at 70, you max out your delayed retirement credits. You can increase your standard benefit by as much as 24%. You also maximize survivor benefits if you have a spouse, you were the higher earner, and you pass away first. Plus, several studies have shown that most retirees end up with more lifetime income by claiming benefits at 70, so you could maximize your total payouts from this retirement benefits program.

There are big downsides, too, though. If you need benefits to retire, then you have to work for a long time. Delaying so long also means you must live a long time after you’ve claimed benefits in order for your higher monthly checks to make up for the years of income you missed out on. Unless you live into your mid-80s, that may not happen. 

What’s the right claiming age for you?

Ultimately, the best age to claim benefits is the one that makes sense for your specific situation. This is going to depend on things like how healthy you are, whether you are married, and when your spouse claims their benefits, how much other retirement income you have, and many other factors.

You should consider talking with a financial advisor to get advice about when to claim benefits because this is a complicated, high-stakes decision that could have a big impact on your future financial security. 

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