The age at which you begin taking Social Security can make or break retirement, but it's not always easy to decide when to file. Some experts swear by delaying benefits to maximize your monthly payments, while others highly recommend filing earlier.
In reality, there's no single best age for everyone to begin claiming. Some retirees really are better off waiting, yet filing early can also be a smarter move in some situations.
Fortunately, there is a relatively straightforward way to determine the best age for you, and it involves this one simple question: How much will you be relying on your benefits in retirement?
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If Social Security will be a major source of income...
Millions of retirees depend heavily on their benefits, so you're not alone if you're in that boat, too. In fact, 43% of baby boomers say Social Security will be their primary income source in retirement, a 2024 report from the Transamerica Center for Retirement Studies found.
In general, the more heavily you plan to rely on your benefits, the longer you should wait to file. There are always exceptions to this guideline, of course, but delaying benefits until age 70 will earn you far more per month than you would collect at age 62, or even at your full retirement age.
The average retiree receives around $1,298 per month in benefits at age 62, according to 2023 data from the Social Security Administration. At age 70, though, that average is $2,038 per month -- a difference of roughly $740 per month. If money is going to be tight in retirement, that extra cash can go a long way.
Delaying benefits can also be a smart move if you're worried about the future of Social Security. While the program isn't going bankrupt, benefit cuts could be on the horizon. While nobody wants their benefits slashed, those cuts may not sting quite so much if you're starting out with larger payments.
If early retirement is a bigger priority...
While many people depend on Social Security as a lifeline in retirement, not all retirees need that extra cash to get by. If you have a strong nest egg and would rather prioritize early retirement over maximizing your monthly income, claiming earlier could be a smarter move.
Filing anytime before your full retirement age will result in smaller checks, and claiming as early as possible at age 62 will permanently reduce your payments by up to 30% per month.
However, filing early also makes it easier to retire early, as you'll have a secondary source of income. If you retire early and delay claiming benefits, you'll likely need to pull much more from your savings during the years you're not collecting Social Security -- which risks depleting your retirement fund too quickly.
Sometimes claiming early can also be smart if you'd prefer not to bet on your longevity. Even if you're in fantastic shape, life can be unpredictable -- especially as you enter your senior years. While this is an unpleasant topic to think about, filing early can give you more time to enjoy your retirement if you develop sudden health issues later in life.
If you can't decide whether to file early or delay...
If you're still on the fence about when to begin claiming, your best bet may be to compromise and file at your full retirement age. This is the age at which you'll receive 100% of your benefit based on your work history, and it's age 67 for everyone born in 1960 or later.
This option can be a smart way to meet in the middle between filing early and delaying. While you won't collect anything extra like you would by waiting to claim, your benefits also won't be reduced at all. If you have a healthy amount of savings but still want to retire a little earlier, your full retirement age could be a fantastic compromise.
Determining when to take Social Security is one of the most important retirement decisions you'll make, so it's wise to think through all of your options before you choose. By weighing your priorities, you can ensure you're heading into your senior years as prepared as possible.
