Choosing when to file for Social Security is crucial as it can significantly impact the monthly benefits you receive, which can total hundreds of dollars.

You can start claiming benefits at age 62, but this comes with a hefty penalty, reducing your benefits by as much as 30%. On the flip side, if you wait until age 70, you’ll receive the highest possible payment based on your earnings history, with at least a 24% increase beyond your full benefit amount.

Despite this reduction, age 62 remains a popular choice for filing. According to 2023 figures from the Social Security Administration, about 25% of men and women claim at this age, while less than 10% opt to wait until 70.

However, when looking at the most advantageous age to take Social Security, the evidence is clear: Age 70 is the most beneficial for most retirees. Yet, there are reasons why this might not be the best decision for you.

Evidence supports the case for filing at 70

Claiming Social Security at age 70 can substantially boost your monthly income, sometimes by several hundred dollars. Additionally, for many older adults, this can enhance your total lifetime earnings.

A 2019 analysis performed by United Income utilized data from the Social Security Administration to investigate how retirees made their filing decisions and the effect of those choices on their lifetime income. Researchers evaluated how many retirees made the most advantageous claiming decision to maximize their earnings and the ideal age for filing.

The findings revealed that only 6.5% of retirees made the best choice by claiming before age 64, while an impressive 57% would have benefited more by filing at age 70. Furthermore, opting for a less-than-optimal age could cost retirees around $111,000 in lifetime earnings on average.

A related study from the National Bureau of Economic Research found that 99.4% of retired households could enhance their lifetime income by waiting until at least age 65 to file, with 91.6% being better off financially by claiming at age 70.

The same study indicated that for individuals aged 55 to 62, claiming benefits at the most financially advantageous age could lead to lifetime gains of approximately $181,623.

Reasons to claim benefits earlier

While the data clearly indicates that waiting until age 70 can optimize your total lifetime income, financial considerations are just one facet of deciding when to file. Other elements, such as health status and marital situation, also hold significant weight in this choice.

If your health declines in your 70s, starting benefits sooner might allow you more time to relish your retirement. Though the future is uncertain, unexpected challenges can arise at any time. Early filing may mean lower monthly payments, but it could also help you maximize your enjoyment of life if unforeseen circumstances occur.

Additionally, if you’re married and both partners qualify for Social Security, coordinating your filing ages may be beneficial. For instance, one spouse might wait until 70 for maximum benefits while the other files at 62 for easier early retirement.

Moreover, if you’re uncertain about when to file, claiming benefits early may be wise. You have the option to withdraw your application and reapply within 12 months if you change your mind. However, if you decide to delay filing and later regret your choice, there’s no chance to turn back time.

Regardless of your circumstances, financial implications will factor into your decision-making process. If your main objective is maximizing retirement income, delaying your claim until age 70 is probably your ideal strategy. But if you prefer an earlier retirement due to health concerns or other reasons, claiming early might offer rewards. While this could involve some financial trade-offs, retirement encompasses more than just economic factors.

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