Social Security plays a vital role in retirement planning, especially for baby boomers. According to a 2024 Transamerica Center for Retirement Studies report, 43% of baby boomers rely on Social Security benefits as their primary source of income. With the average retiree receiving $1,925 per month, your claiming strategy could make a significant difference in your retirement lifestyle.
Let’s look into how the age you file impacts your benefits and how to make the most of your choices.
Table of Contents
Timing
The age at which you claim Social Security directly affects your monthly payments. Your full retirement age (FRA) is when you can receive 100% of your benefits based on your earnings history. For individuals born in 1960 or later, FRA is 67, while those born before 1960 have an FRA of 66 or 66 and a few months.
Filing earlier than your FRA leads to permanently reduced benefits. For instance, claiming at 62 with an FRA of 67 results in a 30% reduction. Conversely, delaying your claim beyond FRA increases benefits until age 70, when you receive the maximum payout.
Benefits
| Age | Monthly Benefit | Change from FRA |
|---|---|---|
| 62 | $1,298 | -30% |
| 67 | $1,884 | Full benefit |
| 70 | $2,038 | +24% |
Waiting until 67 can boost your monthly benefit by $586 compared to filing at 62. Delaying further to age 70 adds another 24% increase over FRA.
Financial
Delaying benefits often makes financial sense. Research from United Income found that 57% of retirees could earn more lifetime income by claiming at age 70, with the average household potentially gaining an additional $111,000.
However, your decision isn’t purely financial. Health and life expectancy should also guide your choice. If health concerns limit your longevity, filing early may result in receiving more total benefits over your lifetime.
Couples can also benefit from strategic planning. A lower-earning spouse might claim early while the higher-earning spouse delays filing, ensuring larger benefits later while meeting current financial needs.
Factors
Choosing the best age to claim Social Security involves balancing financial considerations with personal priorities. Factors such as your overall health, retirement savings, lifestyle goals, and marital status should all influence your decision.
By knowing how timing affects your benefits, you can create a Social Security strategy that aligns with your retirement goals. Whether you prioritize maximizing lifetime income or addressing immediate needs, thoughtful planning is the key to a comfortable and secure retirement.
FAQs
How does age affect Social Security benefits?
Claiming before your full retirement age reduces benefits; delaying increases them.
What is the full retirement age (FRA)?
It’s the age you qualify for 100% of your benefits, usually 67 for most people.
Is delaying benefits always better?
Not always; health and lifespan should also factor into your decision.
How much more can I get by waiting until 70?
Delaying to age 70 can increase benefits by 24% over FRA.
Can couples maximize benefits together?
Yes, strategies like one claiming early and the other delaying can help.
