More Americans than ever are retiring, with millions claiming Social Security benefits each year. In 2025, a trend called “Peak 65” is happening, where 73 million baby boomers are either reaching or have reached age 65. That’s more than 20% of the U.S. population entering retirement age. As this happens, many are wondering: what’s the best age to start receiving Social Security, and how much will you actually get?
The answer depends on your needs, your income history, and how long you can wait before claiming. Here’s a simple guide to help you understand the rules and make the best decision for your retirement.
Claiming at Age 62: The Early Option with a Long-Term Cost
You can start collecting Social Security retirement benefits as early as age 62, but doing this comes with a permanent reduction in your monthly payment. If your full retirement age (FRA) is 66 years and 10 months (as it is for people born in 1959), claiming at 62 will cut your monthly benefit by about 29.17%.
For example, if you were eligible to receive $4,118 per month at full retirement age, starting at 62 would reduce your monthly amount to around $2,917.50.
This option is helpful if you need money immediately or if you’re unable to work. But remember, that lower amount will stay with you for life.
Waiting Pays: Claiming at 70 Gives the Maximum Benefit
If you can delay taking Social Security until age 70, your benefit increases due to delayed retirement credits. These credits boost your payout by 8% per year after reaching your full retirement age.
In 2025, someone who qualifies for the maximum benefit could receive up to $5,108 per month—but this only applies if:
- They earned the maximum taxable income ($176,100 in 2025) for at least 35 years
- They worked at least 10 years and paid Social Security taxes
This approach gives you the highest possible monthly benefit, which can make a big difference if you expect to live a long and healthy life.
How Social Security Calculates Your Payment
Social Security benefits are based on your average income over your highest-earning 35 years. If you don’t have 35 full years of income, the missing years count as zero, which lowers your benefit.
You must also earn at least 40 credits (which equals 10 years of work) to be eligible. These credits come from paying Social Security taxes during your working years.
Example: What Jane Would Get If She Waited
Take the case of Jane, who turns 62 in 2025. If she claims benefits right away, she’ll get $1,000 per month. But if she waits until her full retirement age of 66 years and 10 months, she’ll receive the full amount of $1,411 per month.
If she waits even longer:
- At 63: $1,070
- At 64: $1,144
- At 65: $1,238
- At 67: $1,524
- At 68: $1,646
- At 69: $1,778
- At 70: $1,750 (maximum allowed due to credit limits)
Waiting longer means a higher lifetime benefit, especially if she lives into her 80s or 90s. But if she needs the money sooner or has health issues, claiming early may still make sense.