Data Points to the Most Advantageous Age for Claiming Social Security

If retirement is on the horizon, you may be asking when it makes the most sense to start collecting Social Security. Some data can help point to the age that looks best on paper.

That said, no single age works for everyone. Your retirement strategy should still be tailored to your own goals and circumstances. If you want to understand what the numbers suggest and how they may apply to you, read on.

Research points to this age

A working paper from the National Bureau of Economic Research found that more than 90% of workers ages 45 to 62 would come out ahead by waiting until age 70 to claim Social Security, based on the researchers' model. The finding was drawn from household survey data, but it was not meant as a personalized recommendation for every worker.

The researchers compared claiming choices and lifetime spending using survey data and their own model, rather than focusing only on which option produced the largest monthly check.

Why waiting produces a bigger monthly check

The Social Security Administration defines full retirement age, or FRA, as 67 for people born in 1960 or later. For someone with an FRA of 67, claiming at 62 generally reduces the monthly benefit by 30% compared with waiting until full retirement age.

Waiting beyond FRA can increase the benefit further through delayed retirement credits. After full retirement age, benefits rise by 8% of the full-retirement-age amount for each year of delay, up to age 70. That means someone with an FRA of 67 could receive 124% of their full benefit at 70.

What this looks like in actual dollars

Here is how the numbers can look in practice. The Social Security Administration's latest snapshot lists the average retired-worker benefit at $2,088.79. For illustration, that amount can be treated as a hypothetical full-retirement-age benefit for someone with an FRA of 67, not as the actual average benefit for people claiming at that age.

• If claimed at 62, it would be about $1,462 a month.
• If claimed at 67, it would be about $2,089 a month.
• If claimed at 70, it would be about $2,590 a month.

The monthly difference between claiming at 62 and 70 would be about $1,128. This example does not account for future cost-of-living adjustments or the payments received in the years before age 70.

Health and near-term income needs change things

Those larger payments may sound like a clear reason to wait until 70, but several real-life factors can make delaying less practical. Waiting means giving up years of smaller checks, and some people cannot afford that gap.

Whether larger benefits will eventually make up for those missed payments is impossible to know in advance, but your health and family longevity can help guide the decision.

If you stop working well before 70 and need income for housing, food, insurance, and other essentials, waiting may not be realistic. And if you have significant health issues that could shorten your lifespan, claiming sooner may make more sense.

Where spousal benefits come in

The dollar examples above are based on your own work record and do not factor in any spousal benefits you might be eligible to receive. A spousal benefit can be as much as 50% of the worker's full-retirement-age benefit, but it does not earn delayed retirement credits beyond the receiving spouse's FRA.

Because of that, delaying until 70 solely to boost a spousal benefit does not work the same way as delaying your own benefit. Even so, taking a spousal benefit early can still reduce it. Health, life expectancy, and current income needs should all be part of the decision. Survivor benefits are a separate issue: Delaying your own retirement benefit can raise the survivor benefit available to an eligible spouse after your death.

Why couples claim at different ages

Even if you determine the best claiming age for yourself, it may not be the best choice for your spouse. One spouse may decide to claim earlier to bring in regular income right away, while the other waits to secure a larger monthly check later.

Age gaps, benefit amounts, and expected longevity all shape this approach. If one spouse keeps working longer, that income may make it easier to delay benefits. If either spouse claims while still working before full retirement age, earnings above certain limits can lead to some benefits being withheld.

Delaying the higher earner's benefit can also strengthen survivor protection for the other spouse.

Bottom line

Age 70 stands out in the research, but it may not be the best claiming age for everyone. Health, bridge income, household budget, and the needs and longevity of a spouse can all make the decision more complicated.

And while delaying Social Security can increase your future benefit, it does not delay Medicare, so that should be handled separately with timely enrollment based on your health coverage needs.