If you’re living in the United States and thinking about retirement, one of the most important decisions you’ll make is when to claim your Social Security benefits. These monthly payments can begin as early as age 62, but the age you choose to start receiving them can affect how much money you get for the rest of your life.
Starting Early at Age 62 Comes with a Cut
You can start receiving Social Security benefits at age 62. But here’s the catch—if you claim early, your monthly check will be smaller. The average payment at age 62 is about $1,311, while those who earned more during their career can receive up to $2,831.
However, this early retirement means a permanent reduction in your benefits. You could lose around 25% to 30% of the total amount you would get if you waited until your full retirement age (between 66 and 67 depending on your birth year).
Experts say, if you’re in good health and can manage financially, it’s better to wait a few more years to get a bigger monthly income later.
What Happens If You Claim at Ages 63 or 64?
At age 63, your benefit goes up slightly to around $1,344 per month. It’s still reduced but not as much as at age 62. The exact amount depends on your past income and work history.
If you wait till 64, the average monthly benefit increases to about $1,436. While you’re still retiring early, the penalty for claiming early becomes smaller as you get closer to full retirement age. This makes it a middle-ground choice for those who need income but don’t want a big cut.
Age 65: A Popular Middle Option
By age 65, the average benefit is about $1,583 per month. Many people choose this age to retire because the cut is less harsh, and they’re also eligible for Medicare. It’s a common age for those who want to slow down but still keep their benefits at a decent level.
Full Retirement Age: 66 to 67
If you were born between 1943 and 1954, your full retirement age is 66. At this point, you get your full Social Security benefit without any reduction. The average monthly check is about $1,774.
For those born in 1960 or later, full retirement age is 67. Waiting until this age gives you about $1,894 per month on average. People with high incomes can get as much as $4,018. This age is the sweet spot for those who want to avoid cuts and enjoy stable income.
Delaying Beyond Retirement Age Can Boost Your Payments
If you wait past full retirement age, you earn something called delayed retirement credits. This means your monthly benefit increases by around 8% for each year you delay—up until age 70.
At 68, the average benefit is about $1,947 per month. At 69, it rises a bit more to $1,972. These small increases can make a big difference over the years, especially if you expect to live a long and healthy life.
Maximum Benefits Come at Age 70
If you wait until age 70, you’ll get the biggest Social Security payment possible. The average monthly benefit is around $2,068. For high earners, the maximum benefit can go up to $5,108 per month.
But remember, there’s no advantage to waiting beyond age 70. Social Security stops adding extra credits after that age.
Choosing when to claim Social Security depends on your health, job status, and financial needs. While taking benefits at 62 gives you quick access to money, it comes with a lifelong cut.
Waiting until your full retirement age—or even up to age 70—can mean a lot more money in the long run. Plan wisely, think about your future, and if possible, get advice from a financial expert before deciding.