Retirement planning involves many important decisions, and one of the biggest is choosing when to claim Social Security benefits. While you can begin collecting benefits as early as age 62, delaying your claim can substantially increase the amount you receive every month.
For many retirees, waiting until age 70 leads to the highest possible monthly payment, providing greater financial security throughout retirement. However, delaying isn’t the best option for everyone. Knowing how Social Security works, the average benefit amounts, and the factors that influence your decision can help you choose the right claiming strategy.
Social Security allows eligible workers to start receiving retirement benefits at age 62. However, claiming before your full retirement age (FRA) permanently reduces your monthly benefit.
For people born in 1960 or later, the full retirement age is 67. Waiting until your FRA means you’ll receive 100% of your earned retirement benefit. If you delay claiming beyond your FRA, the Social Security Administration (SSA) rewards you with delayed retirement credits that increase your benefit by 8% per year until age 70.
This means delaying your claim can result in significantly larger monthly payments for the rest of your life.
Statistics
Although delaying benefits provides higher monthly income, relatively few retirees wait until age 70.
According to the Social Security Administration, more than 3.7 million retired workers claimed benefits in 2024. Only about 323,376 people, or approximately 8.7%, waited until age 70 or later before filing.
Most retirees begin collecting benefits earlier because they need retirement income sooner or prefer receiving payments while they are younger.
Benefits
The age at which you claim has a major impact on your monthly payment.
| Claiming Age | Percentage of Full Benefit | Average Monthly Benefit (2024) |
|---|---|---|
| 62 | About 70% | $1,335 |
| Full Retirement Age (67) | 100% | Varies by earnings |
| 70 | 124% | $3,235 |
The difference is substantial.
Retirees who waited until age 70 received an average monthly benefit of $3,235 in 2024, compared with $1,335 for those who claimed at age 62. That is an increase of approximately $1,900 every month, or nearly $22,800 more annually.
Across all retired workers, the average monthly Social Security benefit was approximately $2,275.
Credits
Delayed retirement credits are one of the primary reasons many financial professionals recommend waiting.
After reaching your full retirement age, your benefit increases by 8% each year you postpone claiming, up to age 70.
Here is how delayed credits work:
| Age | Benefit Percentage |
|---|---|
| 67 (FRA) | 100% |
| 68 | 108% |
| 69 | 116% |
| 70 | 124% |
Once you reach age 70, there is no additional benefit for delaying further, so waiting beyond that age generally does not provide extra financial value.
Earnings
Your Social Security benefit is based on your own work history.
The SSA calculates your retirement payment using the average of your highest 35 years of earnings after adjusting those wages for inflation.
If you worked fewer than 35 years, years with no earnings are included in the calculation, which can reduce your benefit.
In addition, Social Security benefits may increase over time through annual Cost-of-Living Adjustments (COLAs), helping retirees maintain purchasing power as living costs rise.
Break-Even
One of the most important concepts when deciding when to claim Social Security is the break-even age.
This is the point at which the larger monthly checks received from delaying benefits become greater than the total amount you would have collected by claiming earlier.
Although every person’s situation is different, many financial analyses estimate the following:
- Claiming at age 67 versus age 70 generally reaches the break-even point around ages 82 to 83.
- Claiming at age 62 versus age 70 typically reaches the break-even point around ages 80 to 82.
If you expect to live beyond those ages, delaying may result in greater lifetime benefits.
Advantages
Waiting until age 70 may be appropriate if:
- You are in good health and expect a longer retirement.
- You have savings, pensions, or employment income that can support you while waiting.
- You are the higher-earning spouse in a married couple since survivor benefits may be larger.
- You continue working because claiming before your full retirement age while earning above the annual SSA earnings limit can temporarily reduce your benefit.
For many retirees, larger guaranteed monthly payments can also provide additional financial stability as expenses increase over time.
Considerations
Claiming earlier may be more appropriate if:
- You have serious health concerns or a shorter life expectancy.
- Your family history suggests a reduced lifespan.
- You need immediate retirement income and cannot continue working.
- You have limited savings and delaying benefits would create financial hardship.
There is no single answer that works for everyone. Your overall retirement plan, health, income needs, and family circumstances should all be considered before making a decision.
Planning
Choosing when to claim Social Security is one of the most important retirement decisions you will make. Waiting until age 70 can significantly increase your monthly income, with the average benefit reaching $3,235 per month in 2024 compared with $1,335 for those claiming at age 62.
While delaying often provides greater long-term financial security, it is not the right strategy for everyone. Carefully evaluating your health, expected longevity, financial resources, and retirement goals can help you determine when claiming Social Security best supports your retirement plans.
FAQs
What is the average Social Security benefit at age 70?
About $3,235 per month in 2024.
Can I claim Social Security at age 62?
Yes, but your monthly benefit is permanently reduced.
Why does waiting until 70 increase benefits?
Delayed retirement credits add up to 8% yearly after FRA.
What is full retirement age?
Age 67 for people born in 1960 or later.
