The Social Security Claiming Decision
Deciding when to claim Social Security is one of the most important financial decisions you'll make in retirement. The difference between claiming at 62 versus 70 can mean hundreds of thousands of dollars over your lifetime.
Yet most people claim too early. About 34% claim at exactly age 62 (the earliest possible), often leaving significant money on the table.
Let's break down how to make the right decision for your situation.
How Social Security Benefits Work
Your Social Security benefit is based on your 35 highest-earning years. The Social Security Administration calculates your Primary Insurance Amount (PIA)—the monthly benefit you'd receive at your Full Retirement Age (FRA).
| Birth Year | Full Retirement Age |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960+ | 67 |
The Impact of Claiming Age
Here's where it gets interesting. Your actual benefit varies dramatically based on when you claim:
Claim Early (Age 62)
- Receive approximately 70-75% of your PIA
- Permanently reduced benefit
- Get more checks, but smaller amounts
Claim at FRA (66-67)
- Receive 100% of your PIA
- No reduction or increase
- The "baseline" amount
Delay to 70
- Receive 124-132% of your PIA (8% increase per year past FRA)
- Maximum possible benefit
- Fewer checks, but larger amounts
Real Numbers: A Case Study
Let's say your PIA at Full Retirement Age (67) is $2,500/month.
| Claiming Age | Monthly Benefit | Annual Benefit | Lifetime (to age 85) |
|---|---|---|---|
| 62 | $1,750 | $21,000 | $483,000 |
| 67 (FRA) | $2,500 | $30,000 | $540,000 |
| 70 | $3,100 | $37,200 | $558,000 |
In this example, waiting until 70 means $75,000 more in lifetime benefits compared to claiming at 62—assuming you live to 85.
The Break-Even Analysis
A key question: At what age does delaying "pay off"?
The break-even point between claiming at 62 vs. 67 is typically around age 78-80. Between 67 and 70, it's around age 80-82.
If you expect to live past these ages (and many people do—average life expectancy at 65 is about 84 for men, 87 for women), delaying usually wins.
Factors Favoring Early Claiming (62)
Consider claiming early if:
- ❤️ Health concerns - Serious illness that limits life expectancy
- 💰 Urgent financial need - No other income sources
- 📉 Retiring early with no income - Need to bridge gap before other income
- 👫 Spousal strategy - Lower earner claims early while higher earner delays
Factors Favoring Delayed Claiming (67-70)
Consider waiting if:
- 💪 Good health and longevity - Family history of living into 80s-90s
- 💵 Other income available - Can cover expenses without SS
- 🛡️ Maximize survivor benefit - Higher benefit for surviving spouse
- 📈 Hedge against longevity risk - Insurance against outliving your money
Spousal Coordination Strategies
If you're married, Social Security claiming becomes a team decision. Key considerations:
Strategy 1: Higher Earner Delays
The spouse with the higher benefit delays to 70, maximizing the survivor benefit. The lower earner can claim earlier.
Strategy 2: Both Delay
Both spouses delay if you have other income and prioritize maximum lifetime benefits.
Strategy 3: Staggered Claiming
One spouse claims at FRA while the other delays, providing income while building the maximum benefit.
The Survivor Benefit Factor
Here's something many people miss: when one spouse dies, the surviving spouse receives the higher of the two benefits (not both).
This means the decision to delay affects not just your benefit, but potentially your spouse's income for decades after you're gone. For this reason, the higher earner should often delay even if it doesn't maximize their personal benefit.
How RetirePro Helps
Modeling Social Security strategies manually is complex. RetirePro's Social Security optimizer:
- 📊 Compares claiming ages from 62 to 70
- 💑 Coordinates spousal strategies automatically
- 🔮 Projects lifetime benefits based on life expectancy
- 📈 Integrates with your full retirement plan to show total income
The Bottom Line
Don't default to claiming at 62 just because you can. Run the numbers for your specific situation, considering:
- Your life expectancy and health
- Your spouse's situation and benefits
- Your other income sources
- Your tolerance for longevity risk
The right claiming strategy can add tens of thousands—or even hundreds of thousands—of dollars to your lifetime retirement income.
Related Calculators
- Social Security Calculator - Find your optimal claiming age
- Free Retirement Calculator - See how Social Security fits your plan
- Early Retirement Calculator - Bridge the gap before benefits start
Want to optimize your Social Security strategy? RetirePro's calculator models every claiming scenario and shows you the optimal age. Analyze your benefits →
