💥 Check out this must-read post from Investopedia | Expert Financial Advice and Markets News 📖
📂 Category: Social Security,Retirement Planning,Personal Finance
📌 Main takeaway:
Key takeaways
- Although you can start claiming Social Security retirement benefits at age 62, waiting longer will increase your monthly benefit amount.
- If you wait until age 70, you’ll get the maximum monthly benefit possible.
- A man who earns $75,000 a year and lives to age 76 would receive about $600 more per month if he claimed benefits at age 70 instead of age 67, even though his total benefits over his lifetime would be less.
According to Schroders’ 2025 American Retirement Survey, about half (53%) of non-retired Americans worry about surviving after their money runs out. However, 44% of non-retirees plan to file for Social Security benefits before age 67, which the Social Security Administration calls full retirement age if you were born in 1960 or later.
However, if you are willing to delay claiming your Social Security benefits, your monthly benefits increase significantly.
Waiting to collect Social Security at age 70 can boost your earnings
The longer you wait to claim Social Security benefits at retirement, the higher your monthly benefit will be. If you wait until age 70 to claim, you will receive the maximum monthly benefit. (The exact amount of your monthly benefits varies from person to person, depending on your earnings.)
More than half of survey respondents (58%) say they wish they had done more planning before retirement. However, those approaching retirement have a number of reasons to claim their benefits early.
To delay claiming your benefits until you can receive the maximum benefit, you generally need to either continue working or obtain alternative sources of income into your 60s. This can include income you earn from a job or side hustle, as well as retirement savings such as a 401(k) and individual retirement account (IRA).
Social Security collections at 67 versus 70
Let’s look at an example using the calculator on the Social Security website. Say Jose was born in 1964 and currently earns $75,000.
If Jose died at age 76, he would receive benefits for 14 years if he started collecting Social Security benefits at age 62, nine years if he claimed them at age 67 (full retirement age), and six years if he claimed his maximum benefit at age 70.
| Estimated Social Security benefits for a man born in 1964, earning $75,000 | |||
|---|---|---|---|
| age | Monthly benefits | Annual benefits | Total claims age 76 |
| 62 | $1,513 | $18,156 | $254,184 |
| 67 | $2,288 | $27,456 | $247,104 |
| 70 | $2,933 | $35,196 | $211,176 |
The best age for Jose to claim benefits depends on whether he wants to maximize his monthly benefits or his total benefits over time. If he claims at age 67, his monthly benefit will be more than $600 less than if he waits until age 70. However, his total benefit claimed at age 76 would be more than $43,000 higher.
The cumulative financial payoff of delaying the start of Social Security benefits until age 70 occurs if you are well past your life expectancy at birth. In our example, shortly before you reach your 79th birthday (at age 78 and seven months), your cumulative benefits will total more than $302,000, and from that point on you will always exceed the cumulative benefits you would have received if you had started collecting at age 62.
Bottom line
The best age to claim Social Security benefits in retirement depends on your individual financial situation. If you start claiming benefits when you reach full retirement age, you will receive a lower monthly benefit than you would if you waited until age 70, when you receive the maximum possible monthly benefit.
It’s usually a good idea to have multiple sources of income in your 60s. This will give you more flexibility, regardless of when you decide to start collecting benefits.
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