Deciding when to claim Social Security benefits—whether at 62, full retirement age (FRA, typically 67 for those born in 1960 or later), or delayed until 70—depends on your financial needs, health, life expectancy, and other personal factors. Here are some considerations to help you make an informed choice:

Key Factors to Consider

  1. Monthly Benefit Amounts

    • Age 62: Benefits are reduced by 30% (e.g., 70% of your FRA amount).

    • FRA (e.g., 67): You receive 100% of your calculated benefit.

    • Age 70: Benefits increase by 8% annually after FRA, maxing out at 124% of your FRA amount 510.

    Example: If your FRA benefit is $1,800/month:

    • At 62: ~$1,260/month.

    • At 70: ~$2,232/month 7.

  2. Break-Even Age

    • This is the age when the total lifetime benefits from delaying surpass those from claiming early. For example:

      • Claiming at 62 vs. 67: Break-even is around 78–79.

      • Claiming at 67 vs. 70: Break-even is around 82–83.

    • If you expect to live beyond the break-even age, delaying may yield higher lifetime benefits.

  3. Health and Life Expectancy

    • If you have chronic health issues or a shorter life expectancy, claiming early may be advantageous.

    • For those with longevity in their family, delaying to 70 could maximize lifetime payouts.

  4. Employment Status

    • If you work before FRA, benefits may be reduced if earnings exceed $22,320/year (2024 limit). This penalty disappears at FRA.

    • Continuing to work can also replace low-earning years in your 35-year benefit calculation, potentially increasing your FRA amount.

  5. Spousal and Survivor Benefits

    • A lower-earning spouse may benefit from claiming early, while the higher-earner delays to maximize survivor benefits.

    • Delaying benefits ensures a higher survivor benefit for your spouse.

  6. Other Income and Taxes

    • If you have sufficient retirement savings, delaying Social Security can reduce reliance on taxable withdrawals (e.g., from 401(k)s).

    • Benefits may be taxable if combined income exceeds $25,000 (single) or $32,000 (couples).

When to Claim

Age to Claim Best For Drawbacks
62 – Need immediate income.
– Have shorter life expectancy.
– Have dependents eligible for benefits.		 – Permanent reduction in benefits.
– Earnings limit penalties if working.
FRA (e.g., 67) – Balancing monthly income and lifetime benefits.
– No earnings limit if working.		 – Lower monthly payout than delaying to 70.
70 – Maximize lifetime benefits (ideal for long lifespans).
– Higher survivor benefits.		 – Risk of shorter lifespan reducing total payouts.

Additional Considerations

  • Inflation Protection: Delayed benefits grow with cost-of-living adjustments (COLA), which compound over time.

  • Medicare Timing: Claiming at 62 means covering private health insurance until Medicare at 65.

Bottom Line

There’s no one-size-fits-all answer. If you need the money now or have health concerns, 62 may be reasonable. If you prioritize maximizing lifetime benefits and can afford to wait, delaying to 70 is often optimal. Use tools like the Social Security break-even calculator  or consult a financial advisor to personalize your strategy.