Determining what age to begin taking Social Security is one of the most important retirement decisions you'll make -- and also one of the toughest.
You can file for benefits as early as age 62, but for every month you wait (up to age 70), you'll receive larger checks. Some experts say delaying as long as possible is the best move, as it will maximize your monthly payments. Others say it's not worth it to wait and that claiming earlier is better.
In reality, there is no single best age to take benefits. However, there's one simple question to ask yourself that can make it easier to choose the best age for your situation: What's your biggest priority in retirement?
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If your main priority is financial security
Everyone will have different goals in retirement, and determining where your priorities lie can make it easier to decide which age is best to start taking Social Security.
If maximizing your retirement income is your biggest goal, claiming at age 70 may be your best bet. At age 70, you'll receive the full benefit you're entitled to based on your work history, plus a bonus every month for the rest of your life.
For example, say you have a full retirement age of 67 years old, and by filing at that age, you'd receive $1,900 per month (which is roughly the average benefit among retirees, as of March 2024). By delaying until age 70, you'd receive that full benefit plus a bonus of 24%, giving you a total of $2,356 per month.
If you were to file at age 62, your full benefit would be permanently reduced by 30%, leaving you with $1,330 per month. That's a whopping $1,026 per month less than you'd receive at age 70. If money is going to be tight in retirement, the extra cash you'll receive by delaying benefits can go a long way.
If your main priority is early retirement
Money isn't everything in retirement, and if you're willing to make financial sacrifices (or if you have enough saved that you don't need to lean on Social Security), claiming early can be a smart strategy to help you retire earlier.
You don't necessarily have to begin taking benefits as soon as you retire, and you can retire in your early 60s and delay benefits until age 70. However, you'd need to rely solely on other sources of income in the meantime, which risks draining your savings too quickly.
Claiming early can also be a good idea if you're battling health issues or have reason to believe you may not live a longer-than-average lifespan. While each check you receive will be smaller, you could collect more money over a lifetime than if you were to delay Social Security.
If you're not sure about your priorities
Determining your goals in retirement isn't always clear-cut, and many people want to maximize their income while still retiring earlier. In this case, filing at your full retirement age (FRA) could be a good idea.
Your FRA is the age at which you receive 100% of the benefit you qualify for based on your career earnings. It varies by birth year, but it's age 67 for everyone born in 1960 or later.
When you file at your FRA, you don't receive any reductions or bonuses -- you simply collect the amount you've earned based on your work history. This can be a smart compromise between claiming early and delaying. You'll receive more per month than you would at age 62, but you can also retire a little earlier than if you were to wait until age 70.
The right age to take Social Security will depend on your unique situation, so there's no single correct age to begin claiming. By considering your priorities, it will be easier to decide on the age that best suits your retirement.
