Determining what age to begin claiming Social Security is a big decision, as it will permanently affect your monthly retirement income.
You can file for benefits at age 62 or anytime thereafter, and once you begin claiming, your benefit amount is generally locked in for life (save for annual cost-of-living adjustments). So it's crucial to choose your filing age wisely.
While everyone's situation is different, data shows that there is a particularly bad age to begin claiming benefits -- but there's an important caveat to consider before taking this research to heart.
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The worst (and best) ages to take Social Security
The age you file will directly impact the amount you receive in benefits each month. To collect the full amount you're entitled to based on your career earnings, you'll need to wait until your full retirement age (FRA) -- which is age 67 for anyone born in 1960 or later.
If you file before your FRA, your benefit amount will be permanently reduced by up to 30%. But if you delay benefits (up to age 70), you'll collect your full benefit amount plus a bonus of at least 24% per month.
In 2019, researchers at United Income studied retirees' claiming ages and how it affected their lifetime income. They then used that data to determine whether retirees filed at the "optimal" age to collect as much as possible from Social Security over a lifetime.
They found that claiming at 62 or 63 was the optimal age for only 6.5% of retirees, making those the worst ages, statistically speaking, to start taking benefits. Meanwhile, around 57% of retirees could have earned more over a lifetime if they'd waited until age 70 to file.
When claiming early still makes sense
It's important to note that this research only focuses on the financial advantages of claiming at a certain age. When it comes to choosing when to take Social Security, though, it's sometimes helpful to look at more than just the dollars and cents.
For example, maybe you're struggling with health issues and want to retire early to give yourself as much time as possible to enjoy your senior years. Claiming Social Security at 62 will still result in reduced payments, but that may be a worthwhile sacrifice in this situation.
Or maybe you simply want to retire in your early 60s so you can enjoy an active retirement while you're still young and healthy. While you can retire early and still delay benefits, claiming early will give you some extra income each month so you don't need to rely entirely on your savings.
Also, if you're married, you and your spouse may have a plan for when each of you will take Social Security. Maybe one of you will claim at 62 to have some extra cash early in retirement, for example, while the other waits until 70 to earn that boost in benefits.
What's the best age for your situation?
When it comes down to finances, taking Social Security at 70 is often the best move to maximize your retirement income. But it's still important to consider the big picture before you file.
To decide which age is the best for your situation, think about your biggest priorities in retirement.
If your primary goal is to earn as much as possible from Social Security, claiming at age 70 may be a smart decision. You could earn hundreds of dollars more per month by delaying benefits, which can go a long way -- especially if your savings are falling short.
On the other hand, if you're OK with earning less each month in exchange for the chance to retire earlier, filing at 62 is worth considering. There's no right or wrong answer here, as everyone's priorities will be slightly different.
There's no clear-cut answer when it comes to the best age to take Social Security. But by considering your unique situation and priorities, you can ensure you're making the best decision for your retirement.
