Social Security at 62 or later?

When it comes to choosing what age to begin taking Social Security, you have plenty of options. You can file as early as age 62, or you can wait a few years and earn larger checks. Delay claiming until age 70 or later, and you can maximize your monthly payments. But don't wait too long and rather live it up and enjoy your retirement.

Two of the most popular ages to claim, though, are 62 and 67. Age 67 is the full retirement age for everyone born in 1960 or later, meaning it's the age at which you'll receive 100% of your benefit based on your work history.

But what's the best age to begin taking benefits? While there's no one-size-fits-all answer, there's a simple question you can ask yourself to decide: What's your biggest priority in retirement?

If your main goal is to retire early

Early retirement is a dream that many share, but it can be tough to achieve. Spending even a few more years in retirement could require tens of thousands of dollars more in savings -- or even more if you live a longer-than-average lifespan.

Claiming benefits at age 62 will result in smaller monthly payments, but it can also make earlier retirement more manageable.

It is possible to retire in your early 60s and delay benefits. However, you'll need to rely entirely on your savings and other sources of income in the meantime, and those risks depleting your retirement fund too quickly. When you take benefits at 62, it's easier to retire early without dipping as much into your savings.

The added bonus of relying less on your savings is that it can help your money grow more over time. Your savings won't stop building just because you're no longer working, and the more you have in your account, the more your money will grow. By depending more on Social Security early in retirement, you can make the most of every dollar in your retirement account.

If you're looking to maximize your income

One of the simplest, most effective ways to dramatically boost your retirement income is to delay claiming Social Security. Filing early will result in smaller checks, while delaying could boost your payments by hundreds of dollars per month.

In fact, according to 2023 data from the Social Security Administration, the average retiree collects around $1,884 per month in benefits at age 67 compared to $1,298 monthly at 62 -- a difference of roughly $586 per month.

If you know your savings likely won't last through retirement, maximizing your monthly payments can be a smart move. While relying solely on Social Security isn't ideal, if it becomes your only source of income, larger checks can go a long way.

Delaying benefits can also be a good idea if you plan to continue working part-time in retirement. If you're under your full retirement age and taking Social Security, your benefits could be temporarily reduced, depending on how much you're earning from your job. While your benefit will be recalculated at your full retirement age, you may choose to simply delay benefits until age 67 to avoid those reductions in the first place.

Determining when to take Social Security is an incredibly important decision that will have a lifetime impact on your monthly payments. While there's no single best age for everyone to file, considering your goals and priorities can make it easier to decide when to begin claiming.

Full Retirement Age for Getting Social Security. When can you retire and collect Social Security? It depends on when you were born.

Full retirement age (FRA) is the age when you can claim your standard Social Security benefit, or your primary insurance amount (PIA), from Social Security. Your PIA is the standard amount you can expect to receive based on your inflation-adjusted average wages earned throughout your career. Full retirement age is 66 and 8 months for those born in 1958 and 67 for those born in 1960 or later -- it varies depending on your birth year.

It is important to know your full retirement age, as it affects when you can claim Social Security without reducing your benefits. It also impacts the amount of delayed retirement credits you can earn in order to raise your benefits, and how much you can earn from working while receiving Social Security without forfeiting any of your benefits.

Social Security full retirement age chart

The chart below shows the full retirement age for people born at different times.

Full retirement age (FRA) is the age when you can claim your standard Social Security benefit, or your primary insurance amount (PIA), from Social Security. Your PIA is the standard amount you can expect to receive based on your inflation-adjusted average wages earned throughout your career. Full retirement age is 66 and 8 months for those born in 1958 and 67 for those born in 1960 or later -- it varies depending on your birth year.

It is important to know your full retirement age, as it affects when you can claim Social Security without reducing your benefits. It also impacts the amount of delayed retirement credits you can earn in order to raise your benefits, and how much you can earn from working while receiving Social Security without forfeiting any of your benefits.?

Social Security full retirement age chart

The chart below shows the full retirement age for people born at different times.?Let’s break down the full retirement age (FRA) based on birth year:

1943-1954: FRA is 66 years.

1955: FRA is 66 years and 2 months.

1956: FRA is 66 years and 4 months.

1957: FRA is 66 years and 6 months.

1958: FRA is 66 years and 8 months.

1959: FRA is 66 years and 10 months.

1960 and later: FRA is 67 years.

How does full retirement age affect your Social Security benefits?

If you claim your benefits at full retirement age, you will receive your standard Social Security benefit amount. If you claim prior to FRA, you will be subject to early filing penalties that reduce your benefit by the following amounts:

5/9 of 1% for each of the first 36 months before FRA

5/12 of 1% for each subsequent month before FRA

This amounts to a 6.66% annual reduction for each of the first three years and an additional 5% reduction for each following year before FRA. If you claim benefits at 62 with an FRA of 67, you will face a full 30% reduction in benefits.

Working after full retirement age

Retirees may work while collecting Social Security benefits, but those younger than their FRA will be subject to the retirement earnings test (RET).

Under this test, if your earnings exceed a certain limit (which changes annually), you will temporarily forfeit some or all of your benefits. Once you reach full retirement age, your benefit is recalculated, and you may receive most of that money back.

Other key questions about full retirement age

There are a few other key things you may need to know about full retirement age.

1. Do survivor benefits increase after full retirement age?

If you are the surviving spouse who is claiming benefits based on your deceased partner's work record, there is no benefit to waiting until after full retirement age to claim your benefits. You do not earn delayed retirement credits, so your benefit will not increase.

However, if you are the higher-earning spouse, delaying your claim for benefits until after FRA can result in your widow(er) receiving more monthly income, as your widowed partner will receive the higher of the two monthly benefits you were each receiving.

2. Are Social Security benefits taxable at full retirement age?

Your age does not have an impact on whether you will owe federal tax on Social Security benefits. Depending on your earnings, you may pay federal taxes on Social Security benefits regardless of the age at which you claim.

Social Security benefits are taxed on amounts exceeding the "provisional income" limit set by the IRS. To calculate your provisional income, add up all non-Social Security sources of income, including nontaxable income such as municipal bond interest, and include half of your annual Social Security income.

Single filers earning provisional income between $25,000 and $34,000 and married joint filers earning between $32,000 and $44,000 will owe income taxes on 50% of their Social Security benefits. For single filers with provisional income above $34,000 and married filers above $44,000, up to 85% of Social Security benefits will be taxable.

3. Is your full retirement age affected by where you live?

Your full retirement age is not affected by where you live. Most Social Security rules, including those that determine benefit amount and claiming age, are set by federal law. However, some states do tax Social Security benefits, so where you live can affect tax levels on your retirement income. But again, the age at which you claim benefits won't affect your tax rate -- your income is the key factor.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.

There is a lot to read and think about when it comes to retirement and I could go on to write up a whole book about it yet by the time I print it new norms, laws, terms and conditions would have shape the information. I recommend you keep learning, attend classes often offered on similar subjects. Most important, you should feel comfortable and enjoy your life, accepting what you are and have.