Choosing the age at which to take Social Security is an incredibly important decision, as it will affect your monthly income for the rest of your life. It's also difficult to change your mind after the fact, so you'll need to put as much thought as possible into your decision before you file.
Age 62 is the most popular time to start taking benefits. Around 35% of men and nearly 40% of women file at this age, according to a 2022 report from the Bipartisan Policy Center.
Image source: Getty Images.
However, waiting until age 70 will give you a major boost in benefits, potentially resulting in hundreds of dollars more per month. But waiting eight long years to start taking benefits isn't easy, and it's also not the right move in every situation.
So when is the best time to claim Social Security? Research suggests one age, in particular, but it's not as clear-cut as it might seem.
How your age affects your benefits
Claiming at age 62 can be ideal in some situations, but it will permanently slash your benefit amount. Your full retirement age (FRA) is the age at which you'll receive the full benefit amount you're entitled to, based on your earnings and work history. Claim before or after that age, and it will affect the size of your monthly checks.
If you have an FRA of 67 years old (which is the case for anyone born in 1960 or later), filing at 62 will reduce your benefits by 30% per month. However, by waiting until age 70 to claim, you'll collect your full benefit amount plus an extra 24% per month for the rest of your life.
The best age to start taking Social Security
While the right time to claim will depend on your situation, research suggests there's a clear winner: age 70.
Researchers at United Income analyzed the claiming decisions of retirees to determine how many filed for Social Security at the "optimal" age, meaning their decisions led to earning as much as possible in benefits over a lifetime. They found that claiming before age 64 was the optimal decision for only 6.5% of retirees, and 57% could have earned more in total by waiting until age 70 to file.
Furthermore, researchers found that claiming Social Security at a sub-optimal age costs retirees in the U.S. a collective $3.4 trillion over a lifetime. That comes out to an average of around $111,000 per household.
An important caveat
One thing to note about this research is that it focuses solely on making the right financial choice. However, that's not the only factor to consider when deciding when to take Social Security.
For example, maybe you're battling health issues and have reason to believe you may not live well into your 70s or beyond. Claiming at 62 will still reduce your monthly payments, but that may be a worthwhile sacrifice if it allows you to retire earlier and have more time to enjoy your senior years.
Or perhaps you have a robust retirement fund with plenty of savings and don't necessarily need the extra cash from Social Security. In that case, the financial incentive to delay benefits may not be the most important factor for you.
Deciding when to take Social Security can be confusing, as there's no single best age. If your ultimate priority is to maximize your monthly income, waiting until 70 may be your best bet. But by looking at the big picture and considering factors beyond finances, you can determine whether that's really the right move for you.
