When it comes to Social Security, many people wonder at what age they should start claiming their benefits. While claiming at age 62 is the most popular choice, other claiming windows are gaining in popularity as people learn more about the benefits of waiting. The three most popular ages for claiming Social Security are ages 62, 65, and 70. Over the past few years, many people have chosen to claim benefits later to increase their monthly checks. Let’s dive into the three most common ages for Social Security claiming and how the decision affects your benefits.
Claiming at 65 to Full Retirement Age (FRA)
In 2023, about 14% of Social Security beneficiaries chose to claim between age 65 and their full retirement age (FRA). Full retirement age is based on the year you were born. For those born in 1960 or later, FRA is 67, but it can be 66 for older adults. This age range is becoming more popular because it allows people to avoid the large penalty that comes with claiming benefits at age 62.
At age 62, your monthly Social Security check can be reduced by 30% if your FRA is 67. By waiting until age 65 or FRA, you can reduce the penalty, though it still exists. For example, if you apply at 65 instead of your FRA of 67, you will face a 13.3% reduction in benefits. However, for many people, waiting a little longer allows for higher monthly checks, which can be a good trade-off for a few years of delayed benefits.
Claiming Between FRA and 69
Another growing trend is for people to delay claiming Social Security benefits past their full retirement age (FRA) and apply later, between the ages of 67 and 69. This age range offers people the chance to earn “delayed retirement credits,” which increase the size of their monthly benefits.
For each year you delay claiming after your FRA, your monthly check grows by 8%. So, if your FRA is 67 and you wait until 69 to claim, your monthly check will be 16% higher. In 2024, about 12.5% of women and 14.2% of men applied for Social Security benefits between their FRA and 69. This percentage has grown steadily since 2018, and the trend is expected to continue.
This option works well for people who can afford to wait and want to maximise their lifetime benefits. By delaying, you’ll receive higher monthly payments for the rest of your life.
Claiming at 70
Claiming at 70 is the best way to maximise your Social Security benefits. If you wait until age 70, your monthly check will be as high as it can possibly be. For example, if your FRA is 67, you’ll qualify for 124% of your full benefit at age 70.
While claiming at 70 is still relatively uncommon, with only 8.6% of men and 9.6% of women claiming at that age in 2023, the number is expected to increase in the future. Waiting until 70 means you’ll receive the highest possible monthly benefits for the rest of your life.
However, it’s important to note that waiting until 70 may not be the right choice for everyone. You’ll need other sources of income to cover your expenses while waiting. Additionally, if you have a shorter life expectancy, you may not get enough benefit from waiting to justify the delay.
What’s the Best Age to Claim?
The best age to claim Social Security depends on your personal situation. There is no universally applicable solution. If you need the money sooner, claiming at 62 may be the best choice, but you’ll be sacrificing a larger monthly benefit. On the other hand, if you can afford to wait and want to increase your monthly payments, claiming between 65 and 69 or at 70 might be the right decision.
It’s a good idea to compare all your options and consider your health, income needs, and life expectancy before choosing the best time to claim. Each claiming age has its advantages, and the right choice will depend on your personal financial goals.
Conclusion
The trend of claiming Social Security benefits at ages 65, between FRA and 69, and 70 has been growing over the past few years. More people are choosing to wait to claim benefits in order to increase their monthly checks, especially in light of the penalties that come with claiming at age 62. Delaying benefits can increase your monthly payments by up to 8% for each year you wait after your FRA. Claiming at age 70 offers the maximum benefit and can provide a steady income for the rest of your life. Ultimately, the right claiming age depends on your unique financial needs and goals, so it’s important to consider all the factors before deciding when to start claiming Social Security benefits.
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