Many Americans Are Unaware of a Key Social Security Option
Social Security can play a pivotal role in the lives of many retirees. It’s alarming, but around 16 million individuals over 65 live below the poverty line, based on 2023 data from the Nonpartisan Center on Budget and Policy Priorities. So, if you’re planning to rely on modest benefits upon retirement, it’s crucial to maximize those benefits. Yet, about 75% of American adults are not aware of one important Social Security option.
Key Factors That Impact Your Benefits
Several factors influence the amount you receive from Social Security. Your career length, income, and even marital status can affect your benefits. One significant aspect is the age at which you decide to start claiming benefits. You can apply as early as 62, but to get the full amount based on your work history, you’ll need to wait until your full retirement age (FRA).
If you choose to apply at 62, your benefits could be reduced by as much as 30% compared to if you claim at your FRA. And that reduction is permanent, which makes the age at which you claim a crucial decision in your retirement planning.
An Option That Might Increase Your Benefits
As you near retirement, it’s important to consider whether you should apply early or wait. There’s a silver lining for those who opt to claim early but later rethink their decision. Within the first year of your claim, you can withdraw your application for benefits to change your mind. Strangely enough, only 26% of U.S. adults are aware of this option, according to a 2025 survey by National Retirement Institutions. Among the most common misconceptions about Social Security, the ability to reverse your claim was the least understood.
Reversing your application could be advantageous in certain situations. For instance, if you file at 62 and then decide to return to work, you might choose to delay receiving benefits until you officially retire. Or, if you simply regret claiming early, you can go back and choose to claim later.
In fact, the differences in monthly benefits can be quite significant. For example, data from Social Security indicates that the average monthly benefit for a retiree at age 62 is about $1,342. In contrast, the average amounts at ages 67 and 70 are roughly $1,930 and $2,148, respectively.
| Age | Average Monthly Benefit |
|---|---|
| 62 | $1,342 |
| 65 | $1,611 |
| 67 | $1,930 |
| 70 | $2,148 |
Withdrawing your application is not free of obligations. You’ll need to repay any benefits you’ve already received, but this can only happen within 12 months of your initial application. If you apply early, change your mind, and decide to withdraw, you have the chance to significantly alter your monthly income.
Thinking About Claiming Early?
If your goal is to maximize your monthly benefits, waiting until age 70 might be the best route. On the other hand, if you intend to keep working into your 60s or 70s, applying for benefits before you retire may not be the smartest choice.
For some, claiming early can be a reasonable option. If circumstances force you to retire earlier than expected, perhaps due to layoffs or health complications—especially without substantial savings—additional income can make a real difference.
Also, if you’re not inclined to gamble on your longevity, the unpredictability of health issues can influence your decision. By claiming early, you might enjoy your benefits while you can.
Ultimately, there’s no universally correct time to claim Social Security. It varies by individual circumstances and personal preferences. However, being aware of all your options, like the ability to alter an early decision, can help you make a more informed choice when it comes to retirement.
