When should I start taking Social Security?
How claiming age affects your benefit
Claiming at 62 reduces your benefit by about 30% compared to your full retirement age (FRA), which is 66–67 depending on your birth year. Waiting until 70 increases it by about 8% per year after FRA.
For example, if your FRA benefit is $2,000, claiming at 62 might give you $1,400, while waiting until 70 could give you $2,480. Over a 20-year retirement, that difference adds up.
- Claim early if you need income now or have health issues
- Claim at FRA if you want a balance between income and waiting
- Claim at 70 if you expect to live long and want the highest monthly check
Other factors to consider
If you're married, survivor benefits can be a key factor. The higher earner may want to delay to maximize the survivor benefit. If you're divorced but were married 10+ years, you may claim on an ex-spouse's record.
Working while claiming before FRA can temporarily reduce your benefit if you earn above the annual earnings limit. Also, Social Security benefits may be taxed depending on your total income.
- Check your life expectancy; longer life favors waiting
- Coordinate with your spouse to maximize survivor benefits
- Consider taxes: up to 85% of benefits may be taxable
Common mistakes
- Claiming at 62 just because you can, without considering the long-term reduction.
- Assuming Social Security will be enough to live on; it typically replaces only about 40% of income.
- Forgetting that delaying benefits is like buying inflation-protected longevity insurance.
