When it comes to choosing a Social Security claiming age, many experts recommend waiting until age 70 to file. There's good reason for that: Delaying benefits can earn you a boost of up to 32% per month on top of your full benefit amount.
For some retirees, though, filing as early as possible -- at age 62 -- is the best choice. Here's why.
How your age affects your benefit amount
Your full retirement age (FRA) is the age at which you'll receive 100% of the benefit you qualify for based on your work history, and it's between ages 66 and 67, depending on your birth year. Filing earlier than your FRA will permanently reduce your payments, while delaying past that age will earn you a bonus each month.
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Social Security is designed so that, in theory, you should collect the same amount in lifetime benefits no matter when you claim. Filing earlier will earn you smaller checks, but you'll receive more of them in total. By delaying Social Security, you'll collect fewer payments, but each will be larger.
Life can be unpredictable, however, and delaying benefits essentially involves betting on your longevity. Even if you're in prime health right now, medical issues can pop up without warning. If you delay benefits until age 70 but then develop health problems just a few years later, you could regret waiting so long to file.
Of course, there's no way to completely avoid regrets later in life. You might live well past the average life expectancy, and by filing at 62, you could regret locking in those smaller payments for the rest of your life. But there's a lesser-known solution if you change your mind after filing early.
Claiming early allows you to change your mind
If you claim benefits early and regret your decision, you have one chance for a do-over. Within 12 months of claiming, you can withdraw your application and stop receiving benefits. From there, you're free to file again at a later date.
You will need to pay back all of the benefits you have already received (including benefits for your spouse or family), along with any Medicare premiums that were withheld. If that's not an option for you, though, you can also suspend your benefits. Once you reach your FRA, you can temporarily stop collecting Social Security up to age 70. Then once you begin taking benefits again, you'll earn larger checks to account for the money that was withheld.
Life can throw curveballs, and claiming early gives you more freedom to change your mind if something unexpected pops up. If you delay benefits until age 70 and regret your choice, there's not much you can do about it.
Your claiming age is a highly personal decision, so filing at 62 won't be the right choice for every retiree. But in some cases, claiming early can provide more options if your circumstances change.
