If you look at the research, there’s one clear age when you should claim Social Security if you want to maximize your benefits.
When you turn 62, you’ll become eligible for Social Security benefits. While you can claim your retirement checks at that age, you don’t have to — and you may not want to. There’s an eight-year window from ages 62 to 70 when benefits are claimable, and your decision about when to start your checks within this time frame can impact your finances for the rest of your life.
Deciding exactly when to act can be complicated, though. You need to consider several factors, including your health status and retirement goals — when you plan to retire and what you wish to do in your senior years.
Still, while different claiming ages may make sense for other seniors, the data shows that one age is hands down the best. Here’s what the research shows and why claiming at this particular age is likely the right move for many older Americans looking to build a secure future.
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Research shows this is the right age to claim benefits
According to multiple studies, the best age to claim your Social Security benefits is 70. The data that backs this up includes:
- A 2019 United Income study found that 57% of retirees generate more lifetime wealth if they claim Social Security at 70. By comparison, just 6.5% of retirees would collect more lifetime Social Security income if they claimed it before turning 64. This study also showed that by claiming at a “suboptimal” time, retirees typically left around $111,000 per household on the table, compared to the amount they’d have received if they waited to claim their benefits.
- Another study from the National Bureau of Economic Research provided even more clarity on when and how retirees should claim Social Security. This study revealed that over 90% of older adults would end up with more lifetime income if they waited to claim benefits until 70. Claiming at the right age could increase the median household’s lifetime wealth by $182,370, according to this research. Choosing the optimal claiming strategy would also result in a 10.4% increase in lifetime spending for the typical worker.
This data is compelling. You’ll very likely end up with more lifetime wealth and more to spend each month if you wait.
The reasons for this are simple. Most people now outlive the life expectancy that was in place when Social Security’s system of early filing penalties and delayed retirement credits was created. This means seniors more than just break even when delaying benefits — they end up with more monthly money and more wealth over time.
Should you follow the data?
Since there’s a relatively clear answer about the best claiming age for most people, it may seem like the best move would be for everyone to claim their Social Security at 70. After all, these benefits are guaranteed for life and include inflation protection.
Money in retirement plans doesn’t do that. Optimizing this reliable source of guaranteed income makes sense.
However, not everyone’s situation is the same. There are some pretty clear-cut examples of when an early claim makes more sense.
For example, if you plan to claim spousal benefits, it often makes sense to claim your own benefits before your full retirement age (FRA) to bring some money in while your higher-earning spouse delays. It doesn’t matter if you shrink your own check because you’ll switch over to spousal benefits later. You also can’t increase your spousal benefits by delaying beyond your FRA, so there’s no reason to wait until 70 (as long as your spouse has claimed, since they have to do that first).
Likewise, if you’re single and in very poor health, an early claim could make sense because you may not live long enough to break even or get benefits at all if you delay.
Outside of these situations, though, there are still some gray areas. For example, if claiming Social Security is essential for you to retire because you can’t support yourself with your 401(k) alone, claiming early may make sense. This is true if you really want to leave the workforce and will be in decent financial shape when combining benefits and retirement savings.
If you’ve been forced into retirement due to a health issue or a lack of job opportunities, and you’re draining your IRA too quickly because you’re trying to delay claiming Social Security, it could also make sense to start your checks early.
Ultimately, in an ideal world, you’ll make waiting to claim Social Security a goal and take steps in your retirement planning to make that happen. While this won’t be possible for everyone, you can set yourself on the path to better benefits if you aim for it and achieve it. Hopefully, you’ll have a more financially secure retirement because of it.