The majority of retirees rely on Social Security to some extent. According to a 2024 Gallup poll, 88% of retired adults say their benefits are at least a minor source of income.
Despite this reliance, many people are unsure how to maximize their benefits. A 2024 survey from the Nationwide Retirement Institute revealed that nearly half of U.S. adults lack clarity on optimizing their Social Security benefits, and 52% are unaware of how their benefit start date impacts the size of their payments.
How the Age You File Affects Your Benefits?
Your Social Security benefit amount depends on the age you decide to claim. While you can start collecting benefits as early as age 62, this choice comes with a permanent reduction of up to 30%.
Conversely, delaying your benefits until age 70 could boost your payments by 24% to 32% per month beyond your full retirement age (FRA).
Your FRA depends on your birth year and typically falls between ages 66 and 67. Filing at your FRA ensures you receive the full benefit amount based on your work history. If you delay benefits past your FRA, you earn delayed retirement credits, increasing your payments each month you wait until age 70.
The Potential $740 Monthly Boost
Delaying your Social Security benefits could lead to a substantial increase in your monthly income. According to December 2023 data from the Social Security Administration, the average 62-year-old retiree receives $1,298 per month.
In contrast, those who delay filing until age 70 collect an average of $2,038 per month. That’s a difference of roughly $740 each month.
Even waiting just a year or two beyond age 62 can make a significant difference in your monthly payments:
| Age | Average Monthly Benefit |
|---|---|
| 62 | $1,298 |
| 63 | $1,339 |
| 64 | $1,460 |
| 65 | $1,563 |
| 66 | $1,740 |
| 67 | $1,884 |
| 68 | $1,948 |
| 69 | $1,945 |
| 70 | $2,038 |
If maximizing your monthly Social Security payments is your goal, waiting as long as possible—up to age 70—is often the best move. However, delaying benefits is not always feasible for everyone.
When Delaying Benefits May Not Be the Best Choice?
While postponing your Social Security benefits can increase your monthly payments, it isn’t always the right decision for everyone.
A 2022 study from the National Bureau of Economic Research found that 99.4% of older adults could optimize their lifetime benefits by filing after age 65, resulting in a median income increase of approximately $158,059.
However, these findings focus primarily on financial outcomes. It’s crucial to also consider personal goals and circumstances when deciding when to file.
For example, if you’re concerned about health issues or want to enjoy more active years of retirement, claiming benefits earlier might make sense.
While retiring in your early 60s and delaying benefits could strain your savings, starting Social Security early may provide the financial stability needed for an enjoyable retirement.
Making the Right Decision for Your Situation
There’s no one-size-fits-all answer to the question of when to claim Social Security. Delaying benefits can significantly increase your monthly income, but personal factors such as health, retirement goals, and financial stability also play a role.
By evaluating your unique circumstances, you can make an informed decision that aligns with your retirement objectives. Whether you choose to claim early or wait until age 70, understanding the trade-offs can help you maximize the benefits you receive.
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