Your benefit amount depends on your age when you first claim, and the difference between claiming at 62 versus 70 can be substantial

Social Security calculates your monthly benefit using a formula based on your earnings history, but the age you claim determines what percentage of that calculated amount you actually receive. If you claim at 62, you get less per month than if you wait until your full retirement age. If you wait until 70, you get more. The system is designed so that the total amount you receive over your lifetime is roughly similar no matter when you start — but the monthly payment and the total you collect before you die differ significantly.

Your full retirement age — the age at which you receive 100 percent of your calculated benefit — depends on your birth year. For people born between 1943 and 1954, it is 66. For people born between 1955 and 1959, it rises in two-month increments. For people born in 1960 or later, it is 67. This is the baseline against which all other ages are measured.

Key Takeaways

  • Claiming at 62 reduces your monthly benefit by roughly 25 to 30 percent compared to claiming at your full retirement age, depending on your birth year.
  • Waiting until 70 increases your monthly benefit by roughly 24 to 32 percent compared to claiming at your full retirement age.
  • Your full retirement age is 66 if you were born between 1943 and 1954, and 67 if you were born in 1960 or later.
  • The total amount you receive over a lifetime is designed to be similar regardless of when you claim, but the monthly payment and the age at which you break even differ substantially.

Claiming before your full retirement age

You can claim Social Security as early as age 62, but your monthly benefit will be permanently reduced. The reduction is not temporary — it applies to every payment you receive for the rest of your life. The exact percentage depends on your birth year and how many months before your full retirement age you claim.

If your full retirement age is 66 and you claim at 62, your benefit is reduced by approximately 25 percent. If your full retirement age is 67 and you claim at 62, your benefit is reduced by approximately 30 percent. The reduction grows larger the earlier you claim — claiming at 63 costs less than claiming at 62, and claiming at 64 costs less than claiming at 63.

Early claiming makes sense if you need the money now, expect to live a shorter life than average, or have other sources of income that would be reduced if you wait. It does not make sense if you are in good health, have other savings to live on, or are married and want to maximize survivor benefits for your spouse.

Claiming at your full retirement age

Your full retirement age is the point at which Social Security considers you to have reached the age for an unreduced benefit. At this age, you receive 100 percent of your calculated benefit amount, with no reduction and no increase. This is the baseline used to calculate all other ages.

For most people currently working, full retirement age is either 66 or 67. The Social Security Administration publishes a table showing the exact full retirement age for each birth year. You can find this on the Social Security website or ask at your local Social Security office.

Claiming at your full retirement age is a middle ground — you get the full unreduced benefit without waiting longer, but you also do not get the bonus that comes with waiting until 70. This age is often chosen by people who want to start receiving benefits without penalty but do not want to wait another six or seven years.

Claiming after your full retirement age

If you wait past your full retirement age to claim, your monthly benefit increases by a fixed percentage for each year you delay. This increase is called a delayed retirement credit. The increase stops at age 70 — there is no additional benefit for waiting past 70.

The delayed retirement credit is roughly 8 percent per year, though the exact amount depends on your birth year. If your full retirement age is 66, waiting one year (until 67) increases your benefit by about 8 percent. Waiting until 70 increases your benefit by roughly 32 percent compared to claiming at 66. If your full retirement age is 67, waiting until 70 increases your benefit by roughly 24 percent.

Delayed claiming makes sense if you are still working and earning good income, if you are in good health and expect to live well into your 80s, or if you are married and want to maximize benefits for a surviving spouse. The higher monthly payment also protects you against inflation over a long retirement.

How the lifetime total works

Social Security is designed so that the total amount you receive over your lifetime is roughly the same whether you claim at 62, at your full retirement age, or at 70. The trade-off is between receiving a smaller monthly payment for a longer period (if you claim early) or a larger monthly payment for a shorter period (if you claim late).

The "break-even" age — the point at which waiting to claim becomes financially better than claiming early — is typically in the early 80s. If you claim at 62 and your full retirement age is 66, you break even with someone who waits until 66 at around age 80. If you claim at 62 and someone else waits until 70, the person who waited breaks even at around age 80 to 82, depending on birth year.

This calculation assumes you live to an average age. If you die before the break-even age, claiming early means you received more total money. If you live well past the break-even age, waiting to claim means you received more total money. The calculation also does not account for taxes, which can affect the actual value of your benefit depending on your other income.

Spousal and survivor benefits

If you are married, your spouse may be able to receive a benefit based on your earnings record. The amount your spouse receives also depends on the age they claim and your age when you claim. If you claim early, your spouse's maximum benefit is reduced. If you wait until your full retirement age or later, your spouse's maximum benefit is higher.

If you die, your surviving spouse and children may receive benefits based on your earnings record. The total family benefit is capped at a percentage of your primary insurance amount (the benefit you would receive at your full retirement age). Claiming early reduces the amount available to your survivors. Waiting to claim increases the amount available to your survivors.

Working while receiving benefits

If you claim before your full retirement age and continue to work, your benefit may be reduced if your earnings exceed a certain threshold. For 2024, if you are under full retirement age for the entire year, Social Security reduces your benefit by $1 for every $2 you earn above $23,400. In the year you reach your full retirement age, the reduction is $1 for every $3 you earn above $62,160, but only for earnings before the month you reach full retirement age.

Once you reach your full retirement age, there is no earnings limit — you can work and receive your full benefit with no reduction. This is one reason some people delay claiming until their full retirement age if they plan to continue working.

Frequently Asked Questions

Can I change my mind after I claim?

You can withdraw your claim within 12 months of claiming and repay all benefits you received. This allows you to restart your benefit at a higher age and a higher monthly amount. After 12 months, you cannot withdraw, but you can suspend your benefits at your full retirement age and restart them later at a higher amount.

What if I was born outside the United States?

You may still be able to receive Social Security benefits based on your own work record or your spouse's record, but the rules vary by country. Contact Social Security directly to learn whether you are covered and what documents you need to provide.

Does my benefit amount change after I start receiving it?

Your benefit is adjusted each year for cost-of-living increases, which Social Security calls a COLA adjustment. The percentage increase is the same for everyone, but the dollar amount of your increase depends on your current benefit. Your benefit does not change based on your age after you start receiving it — the age-based reduction or increase applies only at the time you claim.

What if I am divorced?

You may be able to receive benefits based on a former spouse's earnings record if you were married for at least 10 years and are at least 62 years old. The rules for when you can claim and how much you receive are different from rules for current spouses. Contact Social Security to learn whether you are covered.