When you retire, your Social Security benefit payment depends on when you choose to start receiving it. You can begin claiming benefits as early as age 62, but the amount you get will be lower compared to waiting until you are older. Understanding the differences in payments at ages 62, 67, and 70 can help you make an informed decision about when to start receiving your benefits.
Claiming Social Security at 62: What to Expect
You can start receiving Social Security benefits at age 62, but there is a catch. If you claim your benefits early, your monthly payment will be reduced. For example, if your monthly payment would have been $1,465 at Full Retirement Age (FRA), you’ll get about 30% less if you start at 62, which is approximately $1,036. This early withdrawal is a significant reduction, so it’s important to consider if you really need the money at that time.
Claiming Social Security at 67: Full Retirement Age
At 67, you can claim Social Security without any reduction in your monthly payment. For someone who would have received $1,465 at age 62, waiting until 67 means they could receive $2,119 per month. That’s a difference of $654 more each month. This is a major boost for retirees and could be an important financial lifeline.
Claiming Social Security at 70: Maximum Benefit
If you decide to wait until age 70, you will receive the highest monthly payment possible. You can earn delayed retirement credits, which increase your monthly payments. For example, if you wait until 70, your monthly payment could be as high as $2,634, which is about $515 more than if you had claimed at 67. The longer you wait, the higher your monthly benefit will be, but only if you are financially able and healthy enough to continue working.
Key Takeaways: 62 vs. 67 vs. 70
| Age | Monthly Payment | Difference from 62 | Difference from 67 |
|---|---|---|---|
| 62 | $1,465 | – | – |
| 67 | $2,119 | +$654 | – |
| 70 | $2,634 | +$1,169 | +$515 |
Conclusion
Choosing when to claim your Social Security benefits is a big decision. If you file at 62, you’ll get less money each month, but if you can wait until 67 or even 70, your monthly payment could be much higher. Waiting until age 70 can give you the highest possible payment, but it’s important to consider your health, financial needs, and goals before making your decision.
FAQ’s
Can I claim Social Security at 62?
Yes, you can claim Social Security at age 62, but your monthly payment will be reduced by about 30%.
What is the benefit of waiting until 70 to claim Social Security?
Waiting until age 70 can increase your monthly payment by up to 24%, giving you the highest possible benefit.
How much more will I get by waiting until 67 instead of 62?
If you wait until 67 to claim, your monthly payment will be higher by around $654 compared to claiming at 62.