Key Takeaways
- Claiming at 62 reduces benefits by up to 30% compared to full retirement age
- Delaying past FRA earns 8% delayed retirement credits per year until 70
- Your break-even point is typically between ages 78-82
- Average Social Security benefit in 2024: $1,907/month
- Consider health, other income, and spousal benefits when deciding
When Should You Claim Social Security?
The decision of when to claim Social Security is one of the most important financial choices you'll make in retirement. Your monthly benefit amount varies significantly based on when you start collecting - from as early as age 62 to as late as age 70.
Monthly Benefit = FRA Benefit x Adjustment Factor
Understanding Full Retirement Age (FRA)
Your Full Retirement Age depends on when you were born. This is the age when you receive 100% of your calculated benefit amount.
| Birth Year | Full Retirement Age | Reduction at 62 | Increase at 70 |
|---|---|---|---|
| 1943-1954 | 66 | 25.0% | 32% |
| 1955 | 66 and 2 months | 25.8% | 30.7% |
| 1956 | 66 and 4 months | 26.7% | 29.3% |
| 1957 | 66 and 6 months | 27.5% | 28% |
| 1958 | 66 and 8 months | 28.3% | 26.7% |
| 1959 | 66 and 10 months | 29.2% | 25.3% |
| 1960 or later | 67 | 30% | 24% |
Factors to Consider When Claiming
Your Health and Life Expectancy
If you expect to live past your early 80s, delaying benefits often pays off. Those with health concerns may benefit from claiming earlier.
Other Retirement Income
If you have pensions, 401(k)s, or other income to cover early retirement, delaying Social Security can maximize lifetime benefits.
Spousal Benefits
Married couples have additional strategies. The higher earner delaying can maximize survivor benefits.
Working While Claiming
If you claim before FRA and continue working, earnings above $22,320 (2024) reduce benefits temporarily.
Pro Tip: The Break-Even Analysis
Calculate your break-even age - the point where total benefits from delaying exceed what you'd receive by claiming early. For most people, this is between ages 78-82. If you expect to live beyond this age, delaying is usually advantageous.
Frequently Asked Questions
The maximum benefit at age 70 is $4,873/month in 2024. At FRA (67), it's $3,822/month. At 62, it's $2,710/month. These maximums require 35+ years of maximum taxable earnings.
You can withdraw your application within 12 months of starting benefits, but you must repay all benefits received. After FRA, you can also suspend benefits to earn delayed credits.
A spouse can receive up to 50% of the higher earner's FRA benefit. The claiming spouse must be at least 62. Survivor benefits can be up to 100% of the deceased spouse's benefit.
Up to 85% of benefits may be taxable depending on your combined income. Single filers with income over $34,000 or joint filers over $44,000 may owe taxes on 85% of benefits.
Maximize Your Social Security Benefits
The difference between claiming at 62 vs 70 can be over $100,000 in lifetime benefits.