Claiming Social Security at 62, Full Retirement Age, or 70 — In Plain Words

Social Security’s own framing

The Social Security Administration, called SSA on this page, is often asked, “What’s the best age to start receiving retirement benefits?”

SSA’s answer is that there’s not a single “best age” for everyone and, ultimately, it’s your choice.

SSA says to base your decision about when to apply for benefits on your personal and family circumstances.

SSA also says this decision affects the monthly benefit you will receive for the rest of your life.

It may affect benefit protection for your survivors.

The choice, as SSA states it

SSA asks it this way.

Would it be better for you to start getting benefits early with a smaller monthly amount for more years?

Or wait to receive a larger monthly payment for a shorter period of time?

SSA says the answer is personal.

It depends on several factors.

The factors SSA itself names

SSA names these factors for thinking it over:

• your current financial needs
• your current health
• family longevity
• if you plan to work in retirement
• if you have other sources of retirement income
• your future financial needs and obligations

SSA also names estimating your future financial needs and obligations, and calculating your future Social Security benefit.

How the start date changes the amount

Your full retirement age varies based on the year you were born.

SSA bases your basic Social Security benefit on your lifetime earnings.

That basic benefit is the amount you would receive at your full retirement age.

The actual amount you are entitled to each month depends on when you start to receive benefits.

You can start your retirement benefit at any point from age 62 and older.

Your benefit will be higher the longer you delay your start date, up until age 70.

This adjustment is usually permanent.

It sets the base for the benefits you’ll get for the rest of your life.

You’ll get annual cost-of-living adjustments.

And, depending on your work history, you may receive higher benefits if you continue to work.

A separate plain-words page from the same maker, “Full Retirement Age by Birth Year — In Plain Words,” covers full retirement age by birth year.

Retirement may be longer than you think

SSA says, when you think about retirement, be sure to plan for the long term.

Many of us will live much longer than the “average” retiree.

Most women live longer than men.

About one out of every three 65-year-olds today will live until at least age 90.

And one out of seven will live until at least age 95.

Social Security benefits last as long as you live.

SSA says they provide valuable protection against outliving savings and other sources of retirement income.

SSA says again that you’ll want to choose a retirement age based on your circumstances.

That is so you’ll have enough Social Security income to complement your other sources of retirement income.

Married couples have two lives to plan for

Your spouse may be eligible for a benefit based on your work record.

SSA says it’s important to consider Social Security protection for surviving spouses.

Married couples at age 65 today would typically have at least a 50/50 chance that one member of the couple will live beyond age 90.

If you are the higher earner, and you delay when you start your retirement benefit, it will result in higher monthly benefits for the rest of your life.

If you die first, it will result in higher survivor protection for your spouse.

That is information from the booklet.

It is not a plan for any one couple.

You can keep working

When you reach your full retirement age, you can work and earn as much as you want and still get your full Social Security benefit.

If you’re younger than full retirement age, and if your earnings exceed certain dollar amounts, some of your benefit payments within the one year period will be withheld.

SSA says this doesn’t mean you must try to limit your earnings.

If SSA withholds some of your benefits because you continue to work, SSA will pay you a higher monthly benefit when you reach your full retirement age.

So, if you work and earn more than the exempt amount, it won’t, on average, decrease the total value of your lifetime Social Security benefits.

It could even increase that value.

Here is how this works, as SSA states it.

When you reach full retirement age, SSA will recalculate your benefit to give you credit for months you didn’t get a benefit because of your earnings.

In addition, as long as you continue to work and receive benefits, SSA will check your record every year to see whether the extra earnings will increase your monthly benefit.

The booklet names a pamphlet for the current annual and monthly earnings limits: How Work Affects Your Benefits (Publication No. 05-10069).

This page does not print those limits.

The booklet itself does not print them either.

Don’t forget Medicare

If you plan to delay receipt of benefits because you still work, you’ll still need to sign up for Medicare three months before you reach age 65.

If you don’t enroll in Medicare medical insurance or prescription drug coverage when you’re first eligible, you can sign up later.

However, you may have to pay a late enrollment penalty for as long as you have coverage.

The booklet says more detailed information about Medicare is on SSA’s website at ssa.gov/medicare.

That web address is printed here as plain text, not a link.

More resources, named as the booklet names them

The booklet names these Social Security resources.

They are printed here as plain text, not links.

• ssa.gov/retirement — SSA says you can find more information there to help you decide when to start receiving retirement benefits.
• A personal my Social Security account — SSA says you can get your Social Security Statement, verify your earnings, and get personalized benefit estimates at ssa.gov/myaccount.
• ssa.gov/benefits/retirement/planner/ageincrease.html — the booklet gives this address to find your full retirement age.
• ssa.gov/benefits/retirement/planner/whileworking.html — the booklet gives this address for more information about continuing to work after retirement.
• How Work Affects Your Benefits (Publication No. 05-10069) — the pamphlet the booklet names for the current annual and monthly earnings limits.

This page is general information only. It is not financial advice and it is not benefits advice.