When to sign-up for Social Security is a highly personal decision. It's also an important one. Your age at sign up determines how much money you get for the rest of your life. There's no wrong age, but there are definitely some that could give you a lot more money than others.
Below, we'll look at some of the most popular claiming ages and who they're a good fit for so you can decide which one is right for you.
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1. 62
Social Security's most popular claiming age is also its earliest. About 23.8% of men and 25.6% of women applied for Social Security at 62 in 2022. This is far fewer than the number of 62-year-old applicants in years past, but it's still hands down the most popular age to sign up.
The appeal here is obvious: The sooner you begin, the more years of checks you receive. But there's a major drawback. The government considers applying at 62 early claiming, so it reduces the amount of your checks.
That doesn't make it a bad age to claim, though. It depends on the following factors:
- Financial situation
- Life expectancy
- How it affects others claiming on your record
If you cannot afford to delay Social Security benefits without going into debt, it makes sense to apply immediately at 62. The larger checks you'd get by delaying claiming probably won't be enough to get you out of the financial hole you'd put yourself in by waiting to apply.
Claiming early is also popular among those who have short life expectancies. In this case, delaying too long could cause you to miss out on Social Security benefits altogether.
Finally, claiming early is a great choice for those who have other family members who also want to claim Social Security on their work record. Spouses and dependent children cannot claim Social Security on your work record until you apply first. And in the case of children, they can only claim benefits for a limited time unless they're disabled. So it could make sense to apply early and rake in those extra checks while you can.
2. 66
For most of today's Social Security beneficiaries, 66 is what's known as full retirement age (FRA). This is the age at which the Social Security Administration pays you the full benefit you've earned based on your work history. For those born after 1954, FRA rises by two months each year until it reaches 67 for those born in 1960 and later.
Claiming under your FRA reduces your checks by 5/9 of 1% per month for up to 36 months of early claiming. Those who claim even earlier lose 5/12 of 1% per month for every month of early claiming beyond 36 months. Put another way, your checks grow a little for each month you delay benefits.
This continues even beyond your FRA. At this point, your checks start climbing by 2/3 of 1% per month every month until you reach 70.
Approximately 13% of women and 14.5% of men claimed Social Security at 66 in 2022. This figure had been rising through 2020, but it's taken a dip in the last couple of years as Americans struggled with the pandemic and high inflation.
Claiming at FRA is a nice middle ground for those who are worried about shrinking their benefits but cannot afford to or don't want to delay benefits until 70. But today's workers need to remember that claiming at 66 will be considered early claiming in the not-too-distant future. So if you'd like to avoid benefit reductions for early claiming, you'll probably have to hold out until 67.
3. 65
About 12% of women and 11.7% of men claimed Social Security at 65 in 2022. For many years after the government created Social Security, this was considered FRA. But now it's claiming early. The penalty for applying at 65 isn't quite as severe as it is for those applying at 62 though.
For those with an FRA of 66, your checks only shrink by 6.67%, compared to a loss of 25% for those who apply at 62. The reduction is a little more significant for those with an FRA of 67 at 13.3%. But again, it's much better than the 30% they'd lose by applying as soon as they became eligible.
65 is another popular middle ground for those who don't want to face steep penalties for early claiming but also don't want to wait too long to start collecting checks. But it's important to realize that your checks will still be a little smaller if you claim at this age.
What about claiming late?
Claiming after 66 isn't all that popular, according to the latest Social Security Administration data. Just 15.1% of men and 15% of women delayed Social Security beyond 66. These individuals will receive larger checks than they would have by claiming earlier, but they'll also get fewer of them.
Again, life expectancy and your finances are key here. If you believe you'll live to your 80s or beyond and you can afford to delay Social Security benefits, this strategy will probably lead to the most money over your lifetime. But it might not be feasible if your budget is tight.
Whatever you do, make sure you sign up for Social Security by 70. Your checks don't increase any further beyond this point, so waiting longer only costs you money.
Now that you understand how your claiming age affects your checks, try to settle on a tentative age to sign up. This will help you estimate how much you need to save for retirement on your own. But don't feel like your decision is set in stone. You can always adapt your Social Security strategy if your retirement plans change.
