Planning to Retire in 2026? Here’s How Early and Full Social Security Benefits Compare

Leaving the workforce and starting Social Security do not have to happen at the same time.

You may begin benefits at 62, but the monthly payment can be as much as 30% lower than if you wait until full retirement age. The trade-off is that you would collect checks for more years. The right choice depends on how valuable those extra years of income are to you.

What It Costs To Claim Early

For people born in 1959, full retirement age is 66 years and 10 months. For anyone born in 1960 or later, it is 67, according to the Social Security Administration.

Take a person who is due $2,000 a month at full retirement age. Depending on when benefits begin, the monthly and annual amounts would look like this:

• At 62: $1,400 per month, or $16,800 per year

• At 67: $2,000 per month, or $24,000 per year

• At 70: $2,480 per month, or $29,760 per year

In this example, claiming at 62 means giving up $600 a month compared with waiting until 67. After full retirement age, the benefit rises by 8% a year until 70, the Social Security Administration says.

The Break-Even Point Is Near 79

A smaller monthly payment does not automatically mean less money over a lifetime. By age 67, the person who claimed early in this example would have already received $84,000 that the later claimant did not.

After the second person starts collecting $2,000 a month, it would take about 140 months for the extra $600 to make up that early advantage. That puts the rough break-even point at about 78 years and eight months. This calculation does not include taxes or future cost-of-living increases.

Longevity matters. A man turning 65 in 2026 can expect to live another 19.2 years on average, according to Social Security's Cohort Life Expectancy. For a woman, the average is 21.8 years. Personal health and family history can also influence the decision.

When Taking Benefits Early Can Make Sense

A larger check later is less useful if waiting forces you into debt or requires you to spend down savings too quickly.

"If someone retires at 62 without much other income, I'd rather see them claim Social Security than run up high-interest credit card debt," said Geoffrey Schmidt, a registered Social Security analyst and founder of the retirement information platform Holy Schmidt!

Schmidt also said claiming sooner can help someone avoid selling investments during a weak market just to cover living costs.

Poor health or a shorter life expectancy can also make early claiming more appealing. In a married household, the lower earner may file earlier while the higher earner waits.

Who Has the Best Case for Waiting?

Retirees with good health, savings, a pension or other income generally have more flexibility to delay. Waiting can provide a larger inflation-adjusted income later, when going back to work may not be realistic.

The argument for waiting is strongest for married couples.

"The higher earner of a married couple is probably at the top of my list," Schmidt said.

"When one spouse passes away, the survivor generally receives the greater of the two benefits, not both," said Harold Zazula, a certified financial planner and investment adviser representative with Crystal Capital Management Corporation. Social Security says the same thing on its website: survivors do not combine benefits, but instead receive whichever payment is larger. Delaying the higher earner's claim can therefore leave the surviving spouse with a bigger check.

Working Can Reduce Early Payments

Claiming before full retirement age becomes more complicated if you keep working.

Under current rules, Social Security withholds $1 for every $2 earned above $24,480 if you remain below full retirement age for the entire year. If you reach full retirement age during the year, it withholds $1 for every $3 earned above $65,160 before the month you reach that age.

That earnings limit ends beginning with the month you reach full retirement age. Social Security also recalculates your benefit to account for months when payments were withheld, so the money is not necessarily lost forever.

The Bottom Line

Claiming early gives you more years of smaller checks. Waiting gives you fewer years of larger checks, along with more protection if you live a long retirement.

Before making a decision, log in to your my Social Security account and review your personalized estimates at 62, full retirement age and 70. Then compare those figures with your health, your work plans and whether a spouse may one day rely on your benefit.