Many Americans choose to claim Social Security benefits as soon as they become eligible at age 62. For some retirees, starting benefits early helps cover living expenses or supports an earlier retirement timeline. However, new research suggests that delaying benefits may provide significantly more lifetime income for most retirees.
According to data from the Center for Retirement Research, age 62 remains the most common age to begin collecting Social Security. Yet a separate report from the National Bureau of Economic Research (NBER) indicates that waiting until age 70 may be financially beneficial for the majority of retirees.
The findings are leading some retirement experts to reconsider traditional claiming strategies and encouraging future retirees to look more closely at the long-term impact of when they begin receiving benefits.
Trends
Social Security allows workers to begin retirement benefits as early as age 62. While this provides flexibility, claiming benefits early permanently reduces monthly payments.
Despite the reduction, many Americans continue choosing age 62 because it is the earliest point at which retirement checks become available.
According to the NBER report, only about 10% of retirees wait until age 70 to claim Social Security benefits. However, researchers concluded that roughly 90% of retirees could maximize lifetime financial value by delaying until that age.
The study examined how claiming decisions affect long-term household spending power over retirement.
Findings
The report found that retirees who claim benefits before age 70 may lose substantial lifetime income compared with those who delay.
Researchers estimated the median loss in lifetime discretionary spending from claiming early at approximately $182,370.
This figure reflects the long-term impact of receiving smaller monthly checks throughout retirement. While claiming early provides income sooner, delaying benefits increases monthly payments permanently.
The study suggests many retirees may underestimate how much additional income delayed claiming can provide over a longer lifespan.
Benefits
Social Security benefits increase gradually for each month a person delays claiming after age 62.
Two main factors contribute to higher payments:
- Avoiding early filing reductions before Full Retirement Age (FRA)
- Earning delayed retirement credits after reaching FRA
For many retirees, Full Retirement Age falls between ages 66 and 67, depending on birth year.
The difference in monthly income can become significant over time.
| Claiming Age | Estimated Monthly Benefit |
|---|---|
| 62 | $1,400 |
| Full Retirement Age | $2,000 |
| 70 | $2,480 |
In this example, delaying from age 62 to age 70 increases monthly income by more than $1,000 compared with early claiming.
Because Social Security payments continue for life and receive annual cost-of-living adjustments, higher monthly benefits can provide greater long-term financial stability.
Longevity
One reason delayed claiming may now offer larger advantages is increasing life expectancy.
Social Security was originally structured around older mortality assumptions when average lifespans were shorter. Today, many retirees live well into their 80s or 90s.
As a result, retirees who delay benefits may collect higher payments for many years beyond the break-even point.
For example, someone who waits until age 70 may initially receive fewer total checks, but larger monthly payments over a longer retirement can eventually outweigh the years spent waiting.
This shift in longevity patterns is one reason researchers believe delayed claiming has become more financially valuable for many households.
Planning
Although waiting until age 70 may increase lifetime benefits, delaying Social Security is not always easy.
Many workers retire before age 70 or rely on Social Security income soon after leaving the workforce. In these situations, retirees may need savings from other sources to bridge the gap before claiming benefits.
Retirement accounts such as:
- 401(k) plans
- Traditional IRAs
- Roth IRAs
- Pension income
- Personal savings
can help support delayed claiming strategies.
Financial planners often recommend evaluating health, expected longevity, employment status, savings levels, and household needs before deciding when to claim benefits.
For some individuals, claiming early may still make sense depending on personal circumstances, medical conditions, or income requirements.
Outlook
The latest research from the National Bureau of Economic Research highlights the long-term financial impact of Social Security claiming decisions. While age 62 remains the most popular claiming age, the report suggests many retirees could significantly increase their lifetime retirement income by waiting until age 70.
The decision ultimately depends on individual financial situations and retirement goals, but the data shows that delayed claiming may offer larger long-term benefits than many Americans realize. As retirement planning becomes increasingly important, knowing how Social Security timing affects lifetime income could play a key role in future financial security.
FAQs
What is the most common claiming age?
Age 62 remains the most popular choice.
Why do benefits increase at age 70?
Delayed retirement credits raise monthly payments.
How much can delaying increase benefits?
Monthly checks can rise by over $1,000.
What did the NBER report estimate?
Early claims may reduce lifetime spending value.
