The Schroders 2025 US Retirement Survey indicated that 44% of nonretired Americans plan to file for Social Security benefits before reaching full retirement age (FRA).
While I fully understand why so many people plan to leave the workplace for good before age 67, here are five reasons claiming Social Security benefits at 67 is a smart move:
Image source: Getty Images.
1. You'll receive full benefits
While you can claim Social Security retirement benefits as early as 62, your monthly benefit will be about 30% lower than it would be at age 67. For example, if you're due to receive $2,000 per month at 67, it will be $1,400. While that may sound great now if you intend to keep working on top of receiving Social Security, what about when you're fully retired?
Note: If you must retire due to health problems, that's an entirely different situation. The Social Security Administration (SSA) suggests applying for Social Security disability benefits. According to the SSA, the disability benefit amount is the same as a full, unreduced retirement benefit.
2. Spousal benefits are maximized
If you're married and your spouse plans to claim spousal benefits, they'll be eligible for up to 50% of your monthly benefit. So, if you receive $2,000 each month, they'll get $1,000. If you retire before the FRA, not only are your benefits reduced, but theirs are as well.
And here's the thing: Even if you decide to wait until age 70 to claim Social Security, your spouse will still only be eligible for the amount you would have received at 67.
3. You can earn as much as you'd like
If you decide to claim benefits before your FRA but still want to work, the SSA will withhold $1 for every $2 you earn over the annual earnings limit of $24,480 (for 2026). Let's say you earn $10,000 over the limit. That means the SSA will withhold $5,000 from your payments. Any money that's withheld is not lost. Once you reach FRA, the SSA will recalculate your benefits and add any money held back due to working back into your benefits.
4. It may line up better with drawing down retirement accounts
If you have money invested in a 401(k), IRA, or other retirement account, you may find that waiting until age 67 to claim benefits lines up well with drawing down your account. In short, waiting until 67 to claim Social Security benefits and begin drawing down your retirement account helps reduce the risk of burning through your savings too quickly.
As a bonus, claiming benefits at 67 rather than 62 gives you five extra years to build your retirement savings.
The bottom line is that no one can see the future, and the best you can do is weigh your options and do what's best for you and your household. Because many factors are involved in deciding the best time to retire, there is no right or wrong answer. The only answer that matters is whether you're happy with your decision and can enjoy a relatively stress-free retirement.
