One of the most critical choices you’ll face during retirement is figuring out when to claim Social Security. If you decide to claim early, you can enjoy several years of monthly benefits, but if you wait, you’ll end up with a larger monthly amount later on.

While the typical financial advice suggests you wait as long as possible to claim Social Security, not many retirees actually wait until age 70, when the benefits are at their peak. Many individuals who claim early have valid reasons for their decision, particularly dual-income couples who may face more complex considerations.

Examining the choices of others may provide valuable insights that can guide your own decision. Below are the most common ages at which retirees claim Social Security, according to the latest figures from the Social Security Administration.

1. Age 62

At age 62, you can begin receiving Social Security benefits, and about 23% of men and 24.5% of women choose to claim benefits at this age, making it the most popular option.

There are numerous valid reasons to start collecting benefits as soon as you are eligible. If you need extra income for retirement expenses, you will benefit more by starting early rather than trying to wait. Additionally, if you have health issues that may limit your lifespan, filing early can be a sensible choice. In certain situations, it may be advantageous for a lower-earning spouse to claim benefits at 62 to optimize household income over time.

On the flip side, claiming at age 62 means a reduced benefit. Those who claimed at this age in 2022 received an average monthly payment of $1,287.61, which, after considering last year’s and this year’s cost-of-living adjustments, equates to approximately $1,444.42.

2. Full Retirement Age

To receive your full retirement benefit without any reductions, you must wait until you reach your full retirement age. In 2022, 15% of men and 13.4% of women opted to claim their benefits at this age. Additionally, many retirees transitioned from disability benefits to retirement benefits upon reaching their full retirement age.

In 2022, individuals reaching full retirement age could have done so at 66 years and 2 months or, for some, at 66 years and 4 months due to legislative changes made by Congress in 1983 to gradually increase the full retirement age to 67. Individuals born between 1943 and 1954 attained full retirement age at 66. The threshold rises by two months for each year of birth after 1954 until reaching 67 for those born in 1960 or later.

Choosing to claim benefits at your full retirement age comes with its advantages. Not only will you receive your total benefit at this time, but you’re also striking a good balance between claiming early and waiting until 70. This is also the moment you can maximize your spousal or survivor benefits, making any additional delay unnecessary. Even if you are not eligible for spousal benefits at that time, it can be wise to claim your own benefit at full retirement age, with the possibility of switching to a spousal benefit later.

The monthly benefit for those who waited until their full retirement age is considerably higher than that for individuals claiming at 62. In 2022, retirees who filed at age 66 (not necessarily at full retirement age) received an average monthly payment of $2,241.66, which, after accounting for the past two cost of living adjustments, equates to approximately $2,514.66.

3. Age 65

Age 65 is widely recognized as the traditional retirement age for Americans, as it marked the age where one would initially receive the full retirement benefit when Social Security was first introduced. Additionally, it is the age at which individuals become eligible for Medicare, the federal health insurance program for seniors. Since Medicare premiums are typically deducted from monthly retirement benefits, some retirees find it beneficial to apply for Social Security and Medicare at the same time, often when turning 65.

In 2022, 13.3% of men and 13.4% of women applied for Social Security benefits at age 65, making it the third most common age for applications.

The primary significance of age 65 stems from its connection to Medicare eligibility. This factor can make it easier for many seniors to retire and forgo employer-based health coverage.

Typically, individuals will apply for Social Security benefits upon ending their employment, even if it’s before reaching full retirement age, but this can lead to complications. The retirement earnings test might impact benefits during the first year you start collecting if you exceed a specified earning threshold. Thus, if you quit working mid-year, you could end up with either a significantly reduced benefit or potentially owe money by the end of the year due to your earnings.

The average monthly benefit for individuals claiming Social Security for the first time at age 65 in 2022 was $1,874.56. Adjusted for the last two cost of living increases, this amounts to approximately $2,102.85.

When is the right time to claim Social Security?

The ideal age for claiming Social Security retirement benefits varies based on individual circumstances. For a typical person without a spouse (or ex-spouse), it’s hard to argue against waiting until you reach age 70, if that’s financially feasible for you.

Delaying your claim to age 70 will help you get the highest monthly benefit possible. Additionally, waiting can help safeguard your savings if you end up living longer than anticipated, allowing you to maintain a comfortable retirement as you age.

However, in 2022, only 8.6% of men and 9.5% of women waited until they were 70 or older to start claiming benefits. That percentage is rising, since anyone born in 1943 or later can boost their benefit amount by 8% for each year they wait until age 70 to claim. Just 1.4% of men and 2.2% of women made the same choice in 2012. If your finances allow it, it’s definitely worth considering joining the increasing number of older adults who wait to claim their benefits.

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