The fact that seniors get choices for claiming Social Security is both a good thing and a bad one. On the plus side, it's nice to have the option to choose from a range of filing ages rather than be locked into a single choice. But on the flipside, having to make such a big decision can be stressful, and a lot of people struggle to make the right call.
Now there's technically no such thing as a "final filing age" for Social Security purposes. Once you turn 62, you can sign up for benefits at any age. But there's no financial incentive to delay your Social Security filing beyond age 70, so that's generally considered the "final age" to file, even though you can claim benefits well into your 70s and beyond should you so choose.
Meanwhile, age 67 is full retirement age for Social Security purposes for anyone born in 1960 or later. And here are two pros and cons for choosing it as your filing age.
Image source: Getty Images.
Pro No. 1: You'll get your full monthly benefit without a reduction
Some people rush to claim Social Security at age 62 so they can get their benefits as soon as possible. And a lot of people are able to retire once they're getting Social Security. But filing for Social Security before full retirement age means reducing your monthly benefit as a result. If you wait until age 67 to sign up, you won't face any sort of reduction.
Pro No. 2: You won't have to wait so long to get your money
As mentioned earlier, age 70 is sort of the unofficial "final age" to sign up for Social Security. But claiming benefits then means waiting a pretty long time to get them. The upside of filing for Social Security at 67 is that you're not waiting quite as long.
Con No. 1: You're forcing yourself to wait five years from the earliest filing age
When a monthly payday is made available to you at age 62, it's hard to say no to it. Claiming Social Security at 62 could make it possible to use your benefits to travel and do other things that may require a certain level of fitness and energy. And while you may find that you're just as in shape at age 67 as you are at age 62, there's no guarantee.
Con No. 2: You won't get a boosted benefit
If you file for Social Security at age 67, you won't have to worry about a reduced benefit. But you also won't get a boosted benefit. Claiming Social Security at age 70 versus 67 will mean scoring a monthly payday that's 24% higher (8% per year after age 67). That extra money could really come in handy throughout your retirement, particularly if you don't have a whole lot saved up.
All told, there are plenty of good reasons to claim Social Security at age 67. But you may decide to land on a different filing age due to the reasons above. The key is to think about your personal finances and goals when making that choice.
