When to Claim Social Security: A Framework for Deciding
Claiming at 62, 67, or 70 changes your lifetime benefits by hundreds of thousands of dollars. Learn the break-even analysis, spousal strategies, and how to decide what's right for you.
Every year you delay Social Security past 62 is roughly an 8% guaranteed raise for life.
— FinanceWonk
Social Security retirement benefits are monthly payments you’ve earned through payroll taxes over your working career. The amount you receive depends on your earnings history and—critically—the age at which you choose to claim, which can range from 62 to 70.
Key Takeaways
Claiming age is the biggest lever you control. Your monthly benefit at 70 can be 76% higher than at 62—a decision that compounds over a 20+ year retirement.
Full retirement age isn’t 65 anymore. For most people today, FRA is 66 or 67. Claiming before FRA means a permanent reduction; waiting past it earns you 8% per year until 70.
Break-even typically falls between ages 78 and 82. If you live past your break-even age, delaying was the better financial choice. Most people underestimate their longevity.
Married couples have coordination strategies. Spousal and survivor benefits create opportunities to maximize household income—the higher earner delaying often benefits both partners.
76%
Max benefit increase (62→70)
78-82
Typical break-even age
8%
Delayed credit per year
~30%
Retirees claiming at 62
What Is It — How Benefits Are Calculated and When to Claim
Think of Social Security as a faucet you’ve spent your career filling. The water pressure is set by your earnings history—you can’t change that once you stop working. But you do control when to turn the tap and how wide to open it. Turn it on at 62, and you get a steady trickle for longer. Wait until 70, and the flow is substantially stronger—76% more per month—but you’ve gone eight years without a drop. The question isn’t which choice is “right”—it’s which flow rate best matches your life.
How Your Benefit Gets Calculated
The Social Security Administration looks at your 35 highest-earning years, adjusts them for wage inflation, and calculates your Average Indexed Monthly Earnings (AIME). That AIME then runs through a progressive formula to produce your Primary Insurance Amount (PIA)—the monthly benefit you’d receive if you claim exactly at your full retirement age.
If you worked fewer than 35 years, zeros fill in the gaps, which drags down your average. That’s why working a few extra years can meaningfully boost your benefit—especially if your recent earnings are higher than some of those early-career years.
Full Retirement Age: The Pivot Point
Full retirement age (FRA) is when you can claim 100% of your PIA—no reduction, no bonus. It’s not 65 anymore. If you were born between 1943 and 1954, your FRA is 66. Born in 1960 or later? It’s 67. Those born between 1955 and 1959 fall somewhere in between, with FRA increasing by two months per birth year.
Finding Your FRA
Born 1954 or earlier: FRA is 66. Born 1955: 66 and 2 months. Born 1956: 66 and 4 months. Each subsequent year adds 2 months until 1960+, when FRA reaches 67.
The Spectrum: 62 to 70
Social Security gives you an eight-year window to start benefits. Claim before FRA, and your benefit is permanently reduced—about 6-7% per year early. Claim after FRA, and you earn delayed retirement credits—8% per year, guaranteed, until age 70. After 70, there’s no additional benefit to waiting.
Claiming at 62
You start receiving checks immediately, but at a permanently reduced rate. For someone with an FRA of 67, that’s a 30% reduction from their full benefit.
PIA of $2,500 → Monthly at 62
$1,750
30% permanent reduction
Claiming at 70
You wait 8 years with no Social Security income, but your eventual benefit is 24% higher than your PIA—and 76% higher than if you’d claimed at 62.
PIA of $2,500 → Monthly at 70
$3,100
24% bonus from delayed credits
The Spousal and Survivor Safety Net
Marriage adds layers to the Social Security decision. A spouse can claim up to 50% of the higher earner’s PIA as a spousal benefit—even if they never worked themselves. And when one spouse dies, the survivor can switch to 100% of the deceased’s benefit if it’s higher than their own.
This creates a strategic opportunity: the higher-earning spouse delaying to 70 doesn’t just maximize their own benefit—it also maximizes the survivor benefit that will protect whichever partner lives longer. For many couples, the higher earner’s claiming decision is really a longevity insurance decision for both.
The Earnings Test Trap
If you claim benefits before FRA and continue working, Social Security withholds $1 for every $2 you earn above a threshold ($22,320 in 2024). The good news: those withheld benefits aren’t lost forever—they’re added back to your monthly benefit once you reach FRA. But the short-term cash flow hit catches many early claimers off guard.
How It Works — Break-Even Analysis and Spousal Strategies
The claiming age decision ultimately comes down to math—but it’s math that depends on an unknown variable: how long you’ll live. Let’s work through the numbers so you can see where your personal break-even points fall.
The Benefit Adjustment Formula
Social Security Benefit Adjustment
Before FRA: PIA × (1 − 0.0556 × years early) for first 3 years, then 5% per additional year
After FRA: PIA × (1 + 0.08 × years delayed)
The early reduction formula is technically 5/9 of 1% per month for the first 36 months, then 5/12 of 1% per additional month. The delayed credits are a clean 2/3 of 1% per month (8% per year).
Monthly Benefits by Claiming Age
Let’s see how this plays out for someone with a PIA of $2,500 (roughly the average for a worker with a solid earnings history) and an FRA of 67:
| Claiming Age | Monthly Benefit | % of PIA | vs. FRA |
|---|---|---|---|
| 62 | $1,750 | 70% | -$750 |
| 63 | $1,875 | 75% | -$625 |
| 64 | $2,000 | 80% | -$500 |
| 65 | $2,167 | 86.7% | -$333 |
| 66 | $2,333 | 93.3% | -$167 |
| 67 (FRA) | $2,500 | 100% | $0 |
| 68 | $2,700 | 108% | +$200 |
| 69 | $2,900 | 116% | +$400 |
| 70 | $3,100 | 124% | +$600 |
*Based on PIA of $2,500 and FRA of 67. Your actual benefits depend on your earnings history.
Practical Takeaway
Every year you delay past 62 is worth roughly $100-200 more per month—for life. That’s $1,200-2,400 more per year, every year, for potentially 20-30 years.
Break-Even Analysis: When Delaying Pays Off
The break-even age is when the total benefits from delaying surpass the total benefits from claiming early. Before that point, the early claimer is ahead (they’ve been collecting checks longer). After that point, the late claimer pulls ahead (their bigger checks catch up and keep growing).
| Age Reached | Cumulative if Started at 62 | Cumulative if Started at 67 | Cumulative if Started at 70 |
|---|---|---|---|
| Age 75 | $273,000 | $192,000 | $150,000 |
| Age 78 | $336,000 | $264,000 | $248,000 |
| Age 80 | $378,000 | $312,000 | $310,000 |
| Age 82 | $420,000 | $360,000 | $372,000 |
| Age 85 | $483,000 | $432,000 | $465,000 |
| Age 90 | $588,000 | $552,000 | $620,000 |
*PIA of $2,500, FRA of 67, no inflation adjustment. Totals rounded for clarity.
Notice the crossover points. The 67 strategy overtakes the 62 strategy around age 78. The 70 strategy overtakes 62 around age 80-81. If you live to 85 or beyond, delaying to 70 delivers tens of thousands more in lifetime benefits.
The Tale of Two Retirees
Maria: The Early Claimer
- • Claims at 62, gets $1,750/month
- • Uses benefits to cut back work hours
- • By age 80, has collected $378,000
- • Lives to 88, total: $546,000
Lifetime benefits collected:
$546,000
David: The Delayed Claimer
- • Waits until 70, gets $3,100/month
- • Works part-time or uses savings ages 62-70
- • By age 80, has collected $310,000
- • Lives to 88, total: $669,600
Lifetime benefits collected:
$669,600
David collected $123,600 more than Maria over their lifetimes—despite receiving zero Social Security income for the first 8 years. The key variable was living to 88. If both had died at 78, Maria would have come out ahead.
The 8% Guaranteed Return
Guaranteed
Unlike market returns, the 8% delayed retirement credit is locked in by law. No investment risk.
Inflation-Adjusted
Social Security benefits get annual COLA increases. Your higher base amount gets the same percentage boost.
Lifetime Annuity
Unlike savings that can run out, Social Security pays until you die—longevity insurance built in.
Tax-Advantaged
At most 85% of benefits are taxable, and for many retirees, the rate is lower or zero.
The Rule of Thumb
If you expect to live past 80, delaying benefits generally pays off. The average 62-year-old today will live to about 84 (men) or 87 (women). Most people underestimate their longevity, which means most people would benefit from waiting longer than their gut tells them.
What It Means for You — Choosing Your Claiming Age
The math points toward delaying for most people—but math isn’t everything. Your health, your savings, your spouse’s situation, and your need for income all factor in. Here’s how to think through the decision with your specific circumstances in mind.
The Four Levers You Control
1. Claiming Age
The primary lever. Each year you delay from 62 to 70 increases your benefit by 6-8%. This is the decision with the biggest dollar impact.
2. Spousal Coordination
Married couples can optimize by having the higher earner delay (maximizing survivor benefits) while the lower earner claims earlier for household cash flow.
3. Other Income Sources
Your 401(k), pension, and other income affect both when you need Social Security and how much of it gets taxed. More flexibility here means more claiming options.
4. Longevity Expectations
Family health history, personal health, and lifestyle factor in. Poor health may favor early claiming; excellent health strongly favors delaying.
Reality Check: Taxes on Your Benefits
Here’s something many retirees don’t anticipate: Social Security benefits can be taxable. The IRS looks at your “combined income” (adjusted gross income + nontaxable interest + half your Social Security benefits). Depending on that total:
- •Below $25,000 (single) or $32,000 (married): Benefits are tax-free
- •$25,000-$34,000 (single) or $32,000-$44,000 (married): Up to 50% of benefits are taxable
- •Above $34,000 (single) or $44,000 (married): Up to 85% of benefits are taxable
The 85% Ceiling Is Often Misunderstood
“Up to 85% taxable” doesn’t mean you pay 85% in taxes. It means 85% of your benefit is added to your taxable income. If you’re in the 22% tax bracket, you’d pay about 18.7% of your benefit in taxes (22% × 85%). Still significant, but not the majority of your check.
Special Situations: WEP and GPO
If you worked in a job that didn’t pay into Social Security (many government and education positions), two provisions might reduce your benefits:
The Windfall Elimination Provision (WEP) reduces your own Social Security benefit if you also receive a pension from non-covered work. The Government Pension Offset (GPO) reduces spousal or survivor benefits—often to zero—if you receive a government pension. These rules are complex and can dramatically affect your planning if they apply to you.
Pro Tip
Create a free “my Social Security” account at ssa.gov to see your actual earnings record and benefit estimates at different claiming ages. This is the most accurate starting point for your planning—and it will already factor in WEP if it applies to you.
What If You Need the Money Early?
Not everyone has the luxury of waiting. If you’ve been laid off at 63, have health issues that prevent work, or have minimal savings, claiming early might be necessary. That’s okay—Social Security is designed to be there when you need it.
A few strategies for this situation:
- •Claim and keep working part-time. Yes, the earnings test will withhold some benefits, but those get added back at FRA. You’re not losing them permanently.
- •Bridge with retirement savings. If you can draw from a 401(k) or IRA for a few years, you might be able to delay Social Security to 66 or 67 even if 70 isn’t realistic.
- •Coordinate with a spouse. If married, the lower earner claiming early while the higher earner delays can provide household income while still maximizing survivor benefits.
What If You’re in Poor Health?
If you have a serious health condition and don’t expect to live past your mid-70s, the math shifts toward claiming early. A 70-year-old with a terminal diagnosis who waited to maximize benefits will never see the crossover point. In this case, claiming at 62 gets you the most total dollars.
However, be careful about being too pessimistic. People with chronic conditions often live longer than they expect. And if you’re married, even if you don’t live long, your spouse might—and they’ll inherit your benefit level as a survivor benefit.
The Bottom Line
For most people, delaying Social Security to at least full retirement age—and ideally to 70—is the optimal choice mathematically. It’s a guaranteed 8% annual return with inflation protection and longevity insurance built in. But personal circumstances matter. If you need the money, take it. If you’re in poor health, take it. If you’re married, coordinate with your spouse to maximize household lifetime benefits. The goal isn’t to “beat” the system—it’s to make the choice that best supports your actual life.
Try It Out — Estimate Your Benefit at Different Ages
Ready to see how the numbers work for your situation? Enter your estimated PIA (you can find this on your Social Security statement), your full retirement age, and explore how different claiming ages affect your monthly benefit and lifetime totals.
Quick Start Calculator
Find this on your SSA.gov my Social Security statement
Your Full Retirement Age: 67 (born ~1971)
Monthly Benefit at Age 67
$2,400
$28,800/year
Increase vs FRA
+0.0%
Change vs FRA
+$0/mo
Cumulative by 85
$689,645
with 2.5% COLA
Monthly Benefit by Claiming Age
Selected claiming age (67) is highlighted
What to Look For in the Results
Monthly Benefit by Age
See exactly how much you’d receive each month at 62, 67, and 70—and the dollar difference between them.
Break-Even Age
The age at which delaying starts paying off compared to claiming early. If you expect to live past this age, delaying wins.
Cumulative Lifetime Benefits
Total benefits collected by different ages, showing when the lines cross and how much the gap grows over time.
Tax Impact Estimate
Based on your other income, see approximately how much of your Social Security benefit will be subject to federal income tax.
Disclaimer: This calculator provides estimates for educational purposes only. Actual Social Security benefits depend on your complete earnings history, which the Social Security Administration calculates. This tool does not account for future law changes, cost-of-living adjustments, or individual circumstances like WEP/GPO provisions. For official benefit estimates, create an account at ssa.gov or contact the Social Security Administration directly.
Run the Full Analysis
The interactive calculator above is a quick-start version. The full tool offers more inputs, detailed breakdowns, data tables, and CSV export.
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