Deciding when to take Social Security benefits depends heavily on your own financial circumstances.
You can start collecting Social Security benefits as early as age 62 (or sooner if you’re disabled), wait until you reach your full retirement age, or hold off until age 70. (If you’re a survivor of another Social Security claimant, you can start receiving benefits—based on their earnings—as early as age 60.)
Taking benefits earlier provides income sooner but also locks in a lower monthly payment. Delaying, however, increases your monthly benefit for the rest of your life.
Your Social Security benefit is based on your lifetime earnings, specifically your highest 35 years of earnings adjusted for inflation. The SSA averages those earnings and applies a formula to determine your benefit at full retirement age.
Dependent children may be eligible to receive benefits when you retire. To qualify, your dependent must be unmarried and meet certain age requirements:
- Be under the age 18
- Or under age 19 and attending a primary or secondary school full time
- Or any age if they are disabled before the age of 22
For minors, payments stop when they turn 18. Benefits end for students when they graduate or two months after their 19th birthday, whichever comes first.
If you can afford to wait, holding off on receiving Social Security can increase your monthly income and provide more financial security for retirees over a long retirement. But it’s a fraught question for many retirees, filled with tradeoffs and uncertainty.
Key Points:
— Claiming Social Security at 62 reduces your monthly benefit—by as much as 30% compared to your full retirement age.
— Your full retirement age is when you’re eligible to receive 100% of your benefit amount.
Waiting beyond full retirement age increases your benefit by about 8% per year until age 70.
— Delaying until age 70 can increase your monthly Social Security payments by up to 24% compared to claiming at full retirement age.
The best claiming age depends on your specific situation, including your health, income needs, and expected lifespan.