Statistics say: this is the best age to claim Social Security

The age at which you sign up for Social Security is one of the biggest factors that affect your benefit amount, and it can affect your payments by hundreds of dollars a month.

Filing at full retirement age (which is age 67 for everyone born in 1960 or later) will earn you 100% of your benefit, based on your earnings history. Claiming earlier will lower your payments, while delaying benefits until age 70 will result in the highest possible monthly payments.

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These adjustments can also add up. Among retired workers, the average benefit at age 62 is just $1,298 per month, according to the most recent data from the Social Security Administration. Meanwhile, the average payment at age 67 is about $1,884 per month and $2,038 per month at age 70.

In some cases, filing at 62 is still useful despite the reductions. Other times, though, you might be better off waiting a few years. While everyone’s situation is unique, here’s what the research says about the best ages to start taking Social Security.

Should you claim early or delay?

In a 2022 study by the National Bureau of Economic Research, analysts examined the filing ages of older adults and how those decisions affected their lifetime benefit amounts.

The results? It’s worth delaying. The researchers found that 91.6 percent of workers would get the most lifetime benefit by filing at age 70, and 99.4 percent would collect more overall by waiting until after age 65 to start claims.

The study also broke down the data by age group and found that among those aged 45 to 62, filing at the optimal age would increase the average lifetime benefit by $225,944. In particular, among those aged 45 to 54, optimizing the benefit start date could lead to an average increase of $271,790 over a lifetime.

Source: National Bureau of Economic Research. Table by author.

In other words, according to these statistics, waiting until age 70 (or at least until age 65) is the ideal decision for more than nine out of 10 older adults, and filing at the optimal age could increase the lifetime benefit by hundreds of thousands. of dollars.

When it pays to file early

While the data suggests that deferring benefits is the best move for nearly all retirees, these statistics only account for the financial side of the decision.

There are good reasons to consider claiming early, even if it reduces your lifetime benefit. For example, if you’re forced to retire early due to health problems or job loss, taking Social Security as soon as you retire can help preserve your savings and create a more financially secure retirement.

In some cases, you could actually increase your lifetime benefit by making an early deposit. If you have an average or longer than average life expectancy, delaying Social Security can help you earn more overall. But if you have reason to believe you might live a shorter-than-average lifespan, you can collect more over a lifetime by filing earlier.

Ultimately, sometimes your best decision comes down to personal preference. Maximizing benefits may be a smart goal, but it’s not everything. If you want to retire early and have a robust nest egg, taking benefits early can provide additional income in your early 60s to make retirement more affordable.

Your ideal claim age will depend on a number of factors and the financial aspect is important to consider. However, by considering the big picture and weighing your goals and priorities, you can decide the best age for your situation.