Social Security checks represent the largest source of retirement income for most Americans and so, it is crucial for current workers to strategize, and do so early, in order to maximize their future payouts. One of the key factors in this process is determining the optimal age to start claiming Social Security benefits as the age at which a worker begins to claim benefits significantly impacts the amount they will receive during retirement.
Retired workers who postpone claiming Social Security until age 70 can see a substantial increase in their monthly benefits, potentially up to $1,983 more per month compared to those who start as early as possible. This highlights the importance of timing in maximizing Social Security income as well as the pitfalls future retirees can face when presented with the multiple retirement options.
How claiming age affects Social Security retirement benefits
Workers have the option to begin collecting Social Security benefits at age 62 (it is the earliest possible age to access your own benefits), however, doing so means they will not receive their full benefit, also known as the primary insurance amount (PIA), until they reach full retirement age (FRA).
Claiming benefits before reaching FRA results in a permanent reduction in benefits, while delaying past FRA results in a permanent increase. The exact amount of increase or decrease depends on the precise timing of when benefits are started. To assist with this decision, the Social Security Administration offers a calculator tailored to individual circumstances. It’s essential to note that delayed retirement credits stop accumulating at age 70, making it financially unwise to delay claiming beyond that age.
This chart below has been created using data from the SSA to illustrate the relationship between birth year and FRA, as well as the percentage of PIA received by those who claim at age 62 and at age 70. Retired workers who claim at their FRA receive 100% of their PIA.
| Birth Year | FRA | Claim at age 62 | Claim at age 70 |
| 1943-1954 | 66 | 75% | 132% |
| 1955 | 66 and 2 months | 74,17% | 130,67% |
| 1956 | 66 and 4 months | 73,33% | 129,33% |
| 1957 | 66 and 6 months | 72,5% | 128% |
| 1958 | 66 and 8 months | 71,67% | 126,67% |
| 1959 | 66 and 10 months | 70,83% | 125,33% |
| 1960 and later | 67 | 70 | 124 |
In 2024, for instance, the maximum retired-worker benefit at age 62 is $2,710 per month, while at age 70, it rises to $4,873 per month. This difference of $1,983 per month translates to a 77% increase in potential benefits simply by delaying until age 70. Although few retirees qualify for the maximum benefit, the 77% increase remains a significant factor to consider.
Consider a hypothetical retired worker born in 1960 with a PIA of $1,000 per month. If this individual claims Social Security at age 62, their benefit would be $700 per month. However, if they delay until age 70, their benefit would increase by 77% to $1,240 per month.
Many retirees question whether delaying benefits until age 70 is a wise decision. While it results in a higher payout, it also means fewer years of receiving Social Security income. Some might argue that it would be better to accept a smaller benefit over a longer period. However, generally speaking, the answer is no. And although most people do not qualify for the maximum benefits, in a time period when every cent counts, maximizing monthly payouts can really serve you well.
For instance, consider the same hypothetical person with a monthly benefit of $700 at age 62 or $1,240 at age 70. The average 62-year-old man has a remaining life expectancy of 19 years. This individual must choose between receiving $700 per month for 19 years or $1,240 per month for 11 years. The first option totals $159,600 in lifetime benefits, whereas the second option totals $163,680, about 3% higher.
Similarly, the average 62-year-old woman has a remaining life expectancy of 22 years. She must choose between $700 per month for 22 years or $1,240 per month for 14 years. The first option totals $184,800 in lifetime benefits, while the second option totals $208,320, which is nearly 13% higher.
