Social Security at 62, 67, or 70: The Claiming Age Decision
You can start Social Security as early as 62 or as late as 70. The difference in lifetime benefits can easily exceed $100,000. Here's how to think through one of the biggest financial decisions you'll make.
How the Math Works
Social Security has a "Full Retirement Age" (FRA) that depends on when you were born. For most people reading this, it's either 66, 66 and some months, or 67.
Claim before your FRA, and your benefit is permanently reduced. Claim after, and it's permanently increased.
| Claiming Age | If FRA is 67 | Monthly Benefit (if FRA benefit = $2,000) |
|---|---|---|
| 62 | -30% | $1,400 |
| 65 | -13.3% | $1,733 |
| 67 (FRA) | 0% | $2,000 |
| 70 | +24% | $2,480 |
That's a $1,080/month difference between claiming at 62 versus 70—nearly $13,000 per year, every year, for the rest of your life.
The Break-Even Analysis
If you claim at 62, you get 8 years of checks before the person who waits until 70. That's a lot of money in hand. But eventually the higher monthly benefit catches up.
Example: Mike's Decision
Mike's FRA benefit at 67 is $2,000/month. If he claims at 62, he gets $1,400/month. By age 70, he'll have collected about $134,400.
If he waits until 70, he gets $2,480/month but starts with $0. The higher benefit catches up around age 80-81. After that, the delayed strategy pulls ahead—potentially by hundreds of thousands of dollars if he lives into his 90s.
The uncomfortable truth: Break-even analysis assumes you're comparing pure dollars. But $1,000 at age 62 isn't the same as $1,000 at age 85. You might value early retirement years more highly, or you might have health reasons to claim early—or late.
Beyond Break-Even: Factors That Matter
1. Do You Need the Money?
If you're 62 and need income to pay bills, the "optimal" strategy of waiting doesn't help you eat. Claiming early might let you delay tapping retirement accounts, which has its own benefits.
2. Are You Still Working?
If you claim before FRA and continue working, your benefits may be temporarily reduced if you earn above certain limits (~$22,320 in 2024). After FRA, there's no earnings penalty.
3. What's Your Health Situation?
Family history of longevity? Excellent health? The math favors waiting. Serious health issues? Claiming early might make more sense. Nobody has a crystal ball, but you can make informed estimates.
4. Are You Married?
Spousal and survivor benefits complicate the calculation significantly. If you're the higher earner, delaying your benefit also increases the survivor benefit your spouse would receive. This can be worth hundreds of thousands over a long retirement.
5. What About Taxes?
Up to 85% of Social Security can be taxable depending on your other income. The timing of when you claim affects how it interacts with other income sources like 401(k) withdrawals and Roth conversions.
What the Research Says
Most Americans claim Social Security early—around 62-63. Studies consistently suggest that for those with average or better life expectancy, this often isn't optimal. Many would benefit from delaying, at least to FRA if not to 70.
But "optimal" on a spreadsheet and "right for your life" aren't always the same. The guaranteed income of Social Security has real value, and there's something to be said for enjoying money while you're younger and healthier.
How Talk Through Wealth Helps
Instead of generic break-even calculators, model your specific situation:
- Your actual Social Security estimate (from ssa.gov)
- Your spouse's benefit and optimal coordination strategy
- Your other income sources: 401(k), IRA, pension, part"../../../coming-soon/blog/us"-time work
- Tax implications of different claiming strategies
- Different longevity scenarios
Compare scenarios side by side and see the actual lifetime dollar impact, not just a break-even age.
Model Your Social Security Decision
Join the waitlist to be first to try Talk Through Wealth when we launch in the US.
Join the Waitlist