Social Security: 62 vs. 66 vs. 70 – Which is Right for You to Get the Most Benefits

“When should you start taking Social Security?” ranks among the top questions researched by retirees. Social Security is vital for many Americans, representing at least 50% of total family income for half of all people age 65 or older. Yet despite Social Security’s importance to so many households across the country, it can be confusing to determine the best time to start receiving benefits. Let’s take a look at the basics, starting with three milestone ages everyone needs to know.

When determining when to start your Social Security, these are the 3 numbers to remember: 

• Age 62: You can start receiving Social Security benefits as early as age 62, but your monthly payments will be reduced to 70 – 75% of your full benefit. You can view the exact percentage by using Social Security’s Retirement Age Calculator. 
   

• Age 66 or 67: Depending on the year you were born, age 66 or 67 is considered your full retirement age, commonly called FRA. This is when you’re eligible to receive your full retirement benefit. You can find your FRA at the calculator link above. In 2025, the maximum benefit you could receive at full retirement age is $4,018. 
   

• Age 70: Delaying benefits until age 70 results in a significant increase. Your benefit grows by 8% each year you wait past your FRA. In 2025, that could mean monthly benefits as high as $5,108. 

It’s important to note that age isn’t the only factor that affects the amount of your monthly benefit. How much you earned over the course of your life and how many years you worked will factor into your benefit computation. 

So, at what age should I take Social Security? 

If you envision receiving Social Security benefits as a race, the person claiming benefits at 62 gets a head start compared to those waiting until 66 or 70. While their initial monthly payments are smaller, they begin accumulating benefits sooner. Eventually, those who delayed their benefits will catch up and surpass the early starters in total benefits received, which we call “The Break-Even Points.” 

The Break-Even Points: 

• for someone who starts receiving benefits at 66 is around age 74 or 75.  
• for someone who starts receiving benefits at 70 is around age 78 or 79. 

Delaying Social Security can lead to larger benefits, but it’s not a one-size-fits-all strategy. While some value the security of early benefits, others with longer life expectancies or less immediate financial need might find delaying more advantageous. This is where we issue the disclaimer that you should consider your individual circumstances and risk tolerance before deciding. That sounds simple enough, but let’s be honest: no one knows how long you might live. So how are you supposed to consider that? 

The American Academy of Actuaries decided to tackle this problem. They created a Longevity Illustrator to provide some insight into how long you might live. Yes, it’s a little morbid. But if you really want to know… Enter in some high-level information about your current age, gender, and how you’d classify your current health. The Longevity Illustrator will provide you with a graph that shows your probability of living to various milestone ages.  

Don’t Forget About Your Spouse 

While you’re at it, you may want to include your spouse in the Longevity Illustrator’s calculations, too. That’s because coordinating your benefits could help you maximize your Social Security payments. If you’re eligible for a spousal benefit and a retirement benefit, Social Security will pay you whichever of the two is higher. This is particularly helpful if one spouse earned significantly more than the other. However, you can’t receive the spousal benefit unless your spouse is receiving their benefit, too.  

Some couples in this situation may choose to employ a “split strategy”. That’s when the spouse with lower earnings collects benefits first, while the spouse with higher earnings waits to take advantage of delayed retirement credits. When the higher earning spouse eventually claims their benefits, the other spouse will start receiving the increased spousal amount. This is critical in the event one spouse survives the other.  

That brings us back to the Longevity Illustrator. The higher earning spouse will need to be thoughtful about when they begin taking their Social Security payments if benefits for the surviving spouse are a consideration. Waiting until 70 would yield a higher payment for both spouses, but it also comes with inherent risk. 

And Don’t Forget About Taxes 

Lastly, keep in mind that Social Security benefits are taxable and claiming early could potentially push you into a higher tax bracket. Delaying Social Security while strategically managing IRA distributions can be a tax-efficient approach, especially if you expect to live longer. Carefully weigh the potential benefits of delaying against your personal financial situation and risk tolerance. 

And most importantly, remember this is more than a math equation; this is your retirement. Don’t chase the highest benefits at the expense of time doing what you love. Work with one of our knowledgeable retirement planners to find the solution that gives you the greatest peace of mind. Then go enjoy your retirement. You’ve earned it. 

Disclaimer: Numbers are for illustrative purposes only. Actual income will vary based on your financial situation and tax liability.