The $100,000+ Decision
Choosing when to claim Social Security is one of the most important financial decisions you'll make. The difference between the best and worst claiming strategy can exceed $100,000 in lifetime benefits.
Yet most people claim too early. Let's fix that.
How Social Security Benefits Work
Your benefit amount depends on when you claim relative to your Full Retirement Age (FRA):
| Birth Year | Full Retirement Age |
|---|---|
| 1955 | 66 years, 2 months |
| 1956 | 66 years, 4 months |
| 1957 | 66 years, 6 months |
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960+ | 67 years |
Claiming Age Impact on Benefits
If your FRA benefit is $2,000/month, here's what you'd get at different ages:
| Claiming Age | Monthly Benefit | % of FRA | Annual Benefit |
|---|---|---|---|
| 62 | $1,400 | 70% | $16,800 |
| 63 | $1,500 | 75% | $18,000 |
| 64 | $1,600 | 80% | $19,200 |
| 65 | $1,733 | 86.7% | $20,800 |
| 66 | $1,867 | 93.3% | $22,400 |
| 67 (FRA) | $2,000 | 100% | $24,000 |
| 68 | $2,160 | 108% | $25,920 |
| 69 | $2,320 | 116% | $27,840 |
| 70 | $2,480 | 124% | $29,760 |
Key insight: Waiting from 62 to 70 increases your benefit by 77% ($1,400 → $2,480).
The Break-Even Analysis
"But if I wait, I miss years of payments!"
True. Let's calculate when waiting pays off:
Claiming at 62 vs 67 (FRA)
- At 62: $1,400/month = $16,800/year
- At 67: $2,000/month = $24,000/year
- Payments missed by waiting: 5 years Ă— $16,800 = $84,000
To recoup that $84,000:
- Extra per year at 67: $24,000 - $16,800 = $7,200
- Break-even: $84,000 Ă· $7,200 = 11.7 years
- Break-even age: 67 + 11.7 = age 78-79
Claiming at 67 vs 70
- At 67: $2,000/month = $24,000/year
- At 70: $2,480/month = $29,760/year
- Payments missed by waiting: 3 years Ă— $24,000 = $72,000
To recoup that $72,000:
- Extra per year at 70: $29,760 - $24,000 = $5,760
- Break-even: $72,000 Ă· $5,760 = 12.5 years
- Break-even age: 70 + 12.5 = age 82-83
Lifetime Benefits Comparison
Let's see total benefits received at different life expectancies:
| Life Expectancy | Claim at 62 | Claim at 67 | Claim at 70 | Best Strategy |
|---|---|---|---|---|
| 75 | $218,400 | $192,000 | $149,760 | 62 |
| 80 | $302,400 | $312,000 | $297,600 | 67 |
| 85 | $386,400 | $432,000 | $445,440 | 70 |
| 90 | $470,400 | $552,000 | $593,280 | 70 |
| 95 | $554,400 | $672,000 | $741,120 | 70 |
The pattern:
- Die before ~78 → claiming early wins
- Live past ~82 → waiting until 70 wins
- Average life expectancy at 65 is ~85 → waiting usually wins
When to Claim EARLY (62-64)
Claiming early makes sense if:
1. Health Issues
If you have a serious illness or family history suggesting shorter lifespan, claim early to maximize what you receive.
2. You Absolutely Need the Money
If you can't cover basic expenses without Social Security and have no alternatives, claim early. Survival trumps optimization.
3. Spousal Strategy
Sometimes the lower-earning spouse claims early while the higher earner delays. This provides income while maximizing the larger benefit.
4. You'll Invest It Wisely
If you can invest the early benefits and earn >6% returns, the math might favor claiming early. But this requires discipline most people don't have.
When to WAIT Until 70
Waiting until 70 makes sense if:
1. You're in Good Health
Average 65-year-old today lives to 84-87. If you're healthy with longevity in your family, waiting pays off.
2. You're Still Working
Benefits are reduced if you claim before FRA while working. In 2026, you lose $1 in benefits for every $2 earned above $22,320.
3. You Have Other Income
Pensions, 401(k)s, or other savings can bridge the gap until 70, allowing your Social Security to grow.
4. You Want Inflation Protection
Social Security includes COLA (cost-of-living adjustments). A larger base benefit means larger inflation adjustments forever.
5. You're Married
The higher earner waiting protects the surviving spouse—they'll receive the larger benefit for life.
Spousal Strategies
Marriage creates additional optimization opportunities:
Strategy 1: Higher Earner Delays
- Lower earner claims at 62-67
- Higher earner waits until 70
- Result: Income during the gap + maximized survivor benefit
Strategy 2: Both Wait (If Possible)
- If you have enough savings, both waiting until 70 maximizes total household benefits
Strategy 3: Spousal Benefits
- A spouse can receive up to 50% of the other's FRA benefit
- This doesn't reduce the worker's benefit
- Both can receive simultaneously
Survivor Benefits
When one spouse dies, the survivor receives the higher of the two benefits. Delaying the larger benefit protects the surviving spouse.
The Working-While-Claiming Penalty
If you claim before FRA and still work:
| Year | Earnings Limit | Penalty |
|---|---|---|
| Before FRA | $22,320 | $1 withheld per $2 over limit |
| Year reaching FRA | $59,520 | $1 withheld per $3 over limit |
| FRA and beyond | No limit | No penalty |
Example: You claim at 63, earn $42,320 ($20,000 over limit). Social Security withholds $10,000 in benefits that year.
Good news: Withheld benefits aren't lost—they're recalculated to increase your monthly benefit at FRA.
Tax Considerations
Social Security benefits may be taxable:
| Combined Income* | % of Benefits Taxable |
|---|---|
| Under $25,000 (single) | 0% |
| $25,000-$34,000 | Up to 50% |
| Over $34,000 | Up to 85% |
*Combined income = AGI + nontaxable interest + 50% of SS benefits
Strategy: Delay Social Security while doing Roth conversions. Lower taxable income early, tax-free income later.
The Optimal Strategy for Most People
For the average healthy person, the math usually favors:
- Single: Wait until 70 if possible
- Married, similar earnings: Higher earner waits to 70, lower earner claims 64-67
- Married, one much higher earner: Higher earner waits to 70, lower earner claims earlier
- Health issues: Claim earlier
- Still working: Wait until at least FRA
How to Decide
Ask yourself:
- What's my life expectancy? Family history, health status
- Do I need the money now? Other income sources
- Am I still working? Earning limits apply
- Am I married? Survivor benefit implications
- What's my tax situation? Could affect timing
Related Calculators
- Social Security Calculator - Find your optimal claiming age
- Free Retirement Calculator - See how SS fits your plan
- Early Retirement Calculator - Bridge the gap before benefits
Want to find your optimal claiming age? RetirePro's Social Security optimizer calculates your break-even points and shows lifetime benefits for every claiming scenario. Analyze your benefits →