Deciding when to take Social Security benefits is a crucial financial decision. The timing can significantly affect the amount you will receive monthly and the total you get over your lifetime. Whether you’re contemplating early retirement, already retired, or looking ahead, understanding the rules and options available to you can help make the best decision.
Most people retire early at age of 62 which does not give better benefits than retiring late. The best suitable age to take a retirement at the age of 67 years. Some seniors prefer to retire at 70 years considering their health condition. In this article, we will discuss at which the person should retire to receive maximum benefits.
Contents
- 1 Social Security At 62 Vs 65 Vs 67 – Overview
- 2 1. Full Retirement Age (FRA)
- 3 2. Early Benefits: Ages 62 to 67
- 4 3. Delaying Benefits: Age 70
- 5 4. Impact of Working While Receiving Social Security
- 6 5. Taxes on Social Security
- 7 6. Factors to Consider When Deciding When to Take Social Security
- 8 When Should You Consider Taking Social Security Early?
- 9 Final Takeway
- 10 FAQs
Social Security At 62 Vs 65 Vs 67 – Overview
| Latest News | Social Security At 62 Vs 65 Vs 67 |
| Country | United States |
| Department | Social Security Administration |
| Eligibility | Older citizens of U.S. |
| Category | Government Aid |
| Full Retirement Age (FRA) | 67 years |
| COLA 2026 | 2.8% |
| Official Website | ssa.gov |
1. Full Retirement Age (FRA)
Your Full Retirement Age (FRA) depends on the year you were born. For those born in 1960 or later, FRA is 67. This is the age at which you can start receiving 100% of your Social Security benefit. If you choose to start collecting benefits before FRA, your monthly payment will be reduced. If you delay beyond FRA, you may qualify for a larger benefit.
- Born before 1960: FRA is between 66 and 66 years and 10 months.
- Born in 1960 or later: FRA is 67.
“Every two-month increase may look small, but it can mean thousands of dollars lost or gained over a lifetime,” said Nancy Altman, president of Social Security Works.
Also Read
Social Security Fairness Act 2025: Check Eligibility & Payment Details
2. Early Benefits: Ages 62 to 67
You can start claiming Social Security as early as age 62, but your benefits will be reduced. For example, if your full retirement benefit is $2,000 per month and you start at age 62, your payment will be reduced by 30%—leaving you with around $1,400 per month. This reduction is permanent.
The earlier you claim, the greater the reduction in your monthly benefit, as shown in the table below (assuming a $2,000 full retirement benefit at FRA of 67):
| Claiming Age | Benefit Impact | Benefit Amount |
|---|---|---|
| 62 | 30% lower | $1,400 |
| 62 and 6 months | 27.5% lower | $1,450 |
| 63 | 25% lower | $1,500 |
| 63 and 6 months | 22.5% lower | $1,550 |
| 64 | 20% lower | $1,600 |
| 64 and 6 months | 16.7% lower | $1,666 |
| 65 | 13.3% lower | $1,734 |
| 65 and 6 months | 10% lower | $1,800 |
| 66 | 6.7% lower | $1,866 |
| 66 and 6 months | 3.3% lower | $1,934 |
| 67 (FRA) | No change | $2,000 |
3. Delaying Benefits: Age 70
If you can afford to wait, delaying your benefits past your Full Retirement Age will increase your monthly benefit due to delayed retirement credits. This is an additional 8% per year for each year you delay past your FRA, up until age 70. After age 70, there is no additional benefit to delaying.
For example, if your FRA is 67 and you start taking benefits at age 69, you will receive 16% more than your FRA benefit due to the delayed credits.
“Timing isn’t everything — but in Social Security, it’s close,” said Dan Casey, CFP and retirement strategist. “Claiming early locks in lower income for life.”
4. Impact of Working While Receiving Social Security
If you start Social Security benefits before your FRA and continue working, earnings above a certain threshold will reduce your Social Security payments temporarily.
- Under FRA: For every $2 you earn above $23,400 in 2025, $1 will be deducted from your benefits.
- Year you reach FRA: For every $3 you earn above $62,160 in 2025, $1 will be deducted from your benefits.
Once you reach FRA, your benefits will no longer be reduced, and the SSA will recalculate your payments to account for the withheld amounts.
5. Taxes on Social Security
Social Security benefits may be taxable depending on your income. If your combined income (your adjusted gross income + non-taxable interest + half of your Social Security benefits) exceeds certain thresholds, your benefits may be subject to federal income tax:
- Single filers: Combined income between $25,000 – $34,000 may be taxed up to 50% of your benefits, and above $34,000, up to 85%.
- Married couples: Combined income between $32,000 – $44,000 may be taxed up to 50% of your benefits, and above $44,000, up to 85%.
6. Factors to Consider When Deciding When to Take Social Security
Here are some key factors that may influence your decision:
Your Cash Needs
If you need income to cover your basic expenses, taking benefits early may be necessary. However, if you have other sources of income (pensions, savings, investments), you may be able to delay and receive a higher benefit later.
Life Expectancy
If you’re in good health and expect to live longer than the average life expectancy (around 84 for men and 87 for women), waiting until age 70 can provide you with a higher monthly benefit over your lifetime. On the other hand, if you have health issues and expect a shorter lifespan, taking benefits earlier may be a better option.
Marital Status
If you’re married, consider your spouse’s age, health, and earnings record. If your spouse is the higher earner, delaying your own Social Security benefits until age 70 may provide them with a higher survivor benefit if they outlive you.
Employment Status
If you’re working and plan to take Social Security before your FRA, your benefits may be reduced based on how much you earn. It may make sense to delay your benefits if you can afford to, to avoid the reduction and ensure a higher payout later.
When Should You Consider Taking Social Security Early?
- You need the money to cover living expenses and have no other sources of income.
- You expect to have a shorter life expectancy due to health reasons.
- You’re the lower-earning spouse and your higher-earning spouse can afford to wait.
Final Takeway
When deciding when to take Social Security benefits, the best time to start depends on your financial needs, health, and family situation. While waiting until age 70 can provide a higher monthly benefit, claiming early may be the best choice for some individuals. Understanding the rules around early claiming, delayed retirement, and the impact of taxes is crucial to making an informed decision.
Be sure to evaluate your own situation, and consider consulting a financial advisor to help you navigate the decision that best fits your circumstances.
FAQs
How is Social Security calculated?
Social Security benefits are based on your average lifetime earnings and the number of years you’ve worked. The higher your earnings during your working years, the higher your benefits.
Can I work while receiving Social Security?
You can work while receiving Social Security, but if you haven’t reached your full retirement age, your benefits will be temporarily reduced based on your earnings.
When will I know the COLA adjustment for next year?
The Social Security Administration announces the annual Cost-of-Living Adjustment (COLA) each October, which affects benefits starting in January of the following year.
Can I change my decision on when to take Social Security?
Yes, you can change your mind within 12 months of starting benefits by withdrawing your application, though you must repay any benefits received. After 12 months, your decision is final.