When it comes to preparing for retirement, selecting a Social Security plan and deciding when to start claiming benefits are crucial steps for any worker.
For many, Social Security serves as a key source of income in their retirement years, whether as a primary or supplementary source. Therefore, understanding the potential benefits can be quite beneficial. The amount one receives can differ significantly depending on the age at which benefits are claimed.
Here’s a snapshot of average Social Security benefits for ages 62, 67, and 70:
Understanding the Importance of Age 62, 67, and 70
Individuals have the option to claim their benefits starting at age 62, with the latest possible age being 70.
But there are important trade-offs to consider. Generally, claiming benefits earlier leads to lower monthly payments, whereas waiting until a later age can result in higher payments. The Social Security Administration (SSA) aims for retirees to have similar lifetime benefits, regardless of their claiming age.
The monthly benefit amount adjusts based on your primary insurance amount, which is determined by your earnings history and the total years of work. For those born after 1960, the Full Retirement Age (FRA) is set at 67. If you claim benefits prior to this age, your monthly benefit can decrease—a retiree might see a reduction of up to 30% if benefits are claimed at 62.
Conversely, postponing benefits past FRA leads to increased payments. For instance, delaying until age 70 can result in a 24% increase in the total benefits received.
Making the Decision on When to Claim Benefits
Each year, the SSA releases the Annual Statistical Supplement for Old Age Insurance, Survivors Insurance, and Disability Insurance Trust Funds, which includes thorough data on average monthly benefits.
The 2026 supplement will contain much of the information from December 2025, although it’s still being finalized and may be revised.
Average monthly Social Security benefits for ages 62 through 70 are as follows:
62: $1,424.40
63: $1,435.81
64: $1,478.00
65: $1,607.27
66: $1,807.28
67: $2,016.48
68: $2,052.64
69: $2,096.95
70: $2,274.68
Clearly, those who start claiming benefits earlier receive less each month. There’s nearly an $850 difference—or about $10,200 annually—between the benefits for a 70-year-old and a 62-year-old.
This sizable difference indicates retirees should think carefully about when to claim. While the $10,200 gap might seem like an obvious decision, personal circumstances can complicate the matter significantly.
If you’re 62, have sufficient savings for daily expenses, and maintain decent health, waiting could be wise. Yet, if you’re struggling financially or anticipate imminent medical expenses, early claims could be warranted. That said, retirees can choose to claim benefits anytime after reaching 62, so there’s no rush.
Ultimately, there’s no universal answer for when to claim Social Security benefits. However, as retirement nears, it’s essential to explore your retirement goals and associated costs, whether they are modest or extravagant.
This preparation will enable retirees to make more informed decisions regarding their Social Security benefits once they become eligible.
