Choosing when to claim Social Security is one of the most important retirement decisions you’ll make. While claiming early gives you more years of benefits, waiting results in a larger monthly check.
Here’s a look at the most popular ages for claiming Social Security and the average benefits at each age, based on data from the Social Security Administration.
1. Age 62: The Most Popular Age to Claim
Age 62 is the earliest age at which you can claim Social Security benefits, and it’s the most common choice. In 2022, about 23% of men and 24.5% of women began collecting benefits at this age.
Reasons for Claiming Early:
- Need for income: If you need additional income right away, claiming at 62 is often necessary.
- Health concerns: If you expect a shorter life expectancy, starting benefits early makes sense.
- Low-earning spouse: In dual-income households, a lower-earning spouse may claim early to boost overall household income.
Downside:
Claiming at 62 reduces your monthly benefit by about 30%, resulting in a smaller check for the rest of your life.
- Average monthly benefit at 62: $1,287.61 in 2022, which adjusted for the cost-of-living adjustments (COLA) is now approximately $1,444.42.
2. Full Retirement Age (66-67)
Your full retirement age (FRA) is when you are eligible for 100% of your Social Security benefits. The FRA ranges from 66 to 67, depending on your birth year. In 2022, 15% of men and 13.4% of women waited until FRA to claim their benefits.
Reasons for Claiming at FRA:
- Full benefit: You receive your maximum benefit without waiting until 70.
- Spousal benefits: It’s often optimal to claim spousal or survivor benefits at FRA.
- No earnings limit: After reaching FRA, you can work and earn as much as you want without your Social Security benefits being reduced.
Benefit of Waiting:
Waiting until your full retirement age ensures that you won’t receive reduced payments due to early claiming penalties.
- Average monthly benefit at age 66: $2,241.66 in 2022, adjusted to $2,514.66 after the latest COLAs.
3. Age 65
Although 65 is often considered the traditional retirement age, it is no longer the FRA for Social Security benefits. However, 13.3% of men and 13.4% of women still claim benefits at age 65. This might be due to Medicare eligibility, which starts at 65, making it a convenient time to retire.
Reasons for Claiming at 65:
- Medicare eligibility: Many people coordinate retiring and applying for Social Security with their Medicare enrollment.
- Quitting work: Some retirees stop working at 65 and claim Social Security immediately, even though they haven’t reached FRA.
Potential Pitfall:
If you claim at 65 but haven’t reached FRA, your benefits will still be reduced, and you may face the earnings test if you’re still working, reducing your Social Security payments if you earn over a certain amount.
- Average monthly benefit at age 65: $1,874.56 in 2022, adjusted to $2,102.85 after recent COLAs.
4. Age 70: Maximizing Benefits
Waiting until age 70 is the best way to maximize your Social Security benefits. For each year you delay after your FRA, your monthly benefit increases by 8%.
Despite the financial advantages, only 8.6% of men and 9.5% of women waited until 70 or older to claim benefits in 2022.
Benefits of Waiting:
- Maximum benefit: By delaying until 70, you receive your largest possible monthly check.
- Longevity protection: Waiting helps ensure you won’t outlive your savings if you live longer than expected.
Growing Trend:
More people are recognizing the advantages of waiting. In 2012, just 1.4% of men and 2.2% of women waited until 70, but those numbers are climbing as the 8% annual increase becomes better understood.
When Should You Claim Social Security?
The best time to claim Social Security depends on your personal situation, health, and financial needs. If you can afford to wait until 70, you’ll receive the largest possible benefit.
However, if you need the income earlier, claiming at 62 is still a valid option. It’s essential to weigh your financial situation, life expectancy, and potential spousal benefits when making your decision.
FAQs
What is the most popular age to claim Social Security?
Age 62 is the most popular age, with about 23% of men and 24.5% of women claiming at that time.
What is the average monthly benefit at full retirement age?
The average benefit for those claiming at age 66 is about $2,514.66 after COLA adjustments.
How much more do you receive if you wait until 70 to claim Social Security?
You receive an 8% increase in benefits for each year you wait after full retirement age, up to age 70.
Can I claim Social Security at 65 and still work?
Yes, but if you haven’t reached your FRA, your benefits could be reduced due to the earnings test.
Why do some people claim benefits at 65?
Many claim at 65 because that’s when they become eligible for Medicare, making it a convenient time to retire.
