Choosing a Social Security filing age is one of the most difficult financial decisions you will have to make as a retiree. That's because your choice will directly determine how much money you get out of the program each month.
The earliest you can claim Social Security is when you turn 62. But you're not eligible for what the program defines as your "full" monthly benefit until you reach what it views as your "full retirement age," or FRA. That's 67 for anyone born in or after 1960. Claiming earlier means your monthly payment size will be cut by a percentage -- but you'll get more monthly payments overall.
You can also delay your Social Security claim past your FRA and boost your benefits even further in the process -- by 8% a year until you reach 70. But deciding which age to go with is tough. And if you're wondering if there's a "recommended" age at which people in general ought to claim Social Security, the answer is no.
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Why it's hard for financial experts to recommend a filing age
You'll often hear that it's not a good idea to claim Social Security early (meaning prior to your FRA), especially if you're low on retirement savings. But for some people, filing early can be a smart choice, despite the reduction in monthly benefits it results in.
Ultimately, though, any Social Security filing age you might land on has its pros and cons. The downside of filing at any age before FRA is a reduced benefit -- proportional to how early you're claiming -- but the upside is getting your money sooner.
Delaying your filing past your FRA has the perk of boosting your benefits for life. But the downside is having to wait longer to get that money. And if your lifespan turns out to be lower than average, you may collect less overall from the program by waiting than you would have otherwise.
Filing exactly at your FRA might seem like a good compromise. But even then, you might later end up bemoaning the fact that you could've had your money up to five years earlier on the one hand, or that you didn't sit tight and give your benefit payments a boost on the other.
To put it another way, when it comes to claiming Social Security, you sort of can't win. You'll always be able to find some downside to any given filing age you land on. Your best bet, therefore, is to weigh the pros and cons and determine what's a reasonable choice for you.
If you're low on personal savings and won't have a lot of other sources of income during retirement, filing early may not be prudent unless you have health issues you expect to shorten your lifespan. But if that is a concern, filing earlier might make more sense for you financially because it could give you more overall Social Security income in your lifetime. If you're doing OK savings-wise, but want more financial flexibility in retirement, then filing at FRA, or perhaps a year before your FRA, might be a better move than claiming benefits at 62.
Ultimately, the factors you'll want to consider when determining which age to claim benefits should include your:
- Level of personal savings;
- Available income sources (maybe you own a rental property that generates income, are due to collect a pension, or you plan to work part-time in some capacity as a retiree);
- Health;
- Spouse's feelings on the matter (it's important to decide when to claim benefits together if you're married).
There's no perfect filing age for claiming Social Security, either broadly speaking or for an individual. All you can do is spend some time thinking things through and reviewing your unique situation. After that, go with what seems like the most reasonable choice.
