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Determining when to claim Social Security is a difficult decision for many. While you can claim as early as age 62 — even if you’re still working — many experts advise you to wait until you reach the full retirement age of 67.
According to the Small Business Administration (SBA) , “You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.”
Deciding whether you should wait to claim Social Security? Here are four reasons — including the No. 1 most important — to wait until you’re 67.
4. You Can Earn More Money Working
Working well into your 60s — before claiming Social Security — will ensure you'll receive higher checks throughout your retirement.
If you wait to retire and claim Social Security until you are 67 years old, you’ll have more time to earn money while still working. Additionally, while you can work while receiving Social Security payments, you could be subject to earnings limits that will reduce your benefits. Whereas, at age 67, you won’t have any earnings limit.
Many people rush their retirement only to end up with insufficient funds throughout the remainder of their retirement. If you choose to continue working — so long as your body and mind allow — you will reap the benefits well into your old age.
Of course, if an illness or other issue is preventing you from continuing to work until you’re 67, don’t force yourself to make it to this age. This advice is for those who are willing and able to keep up with a part-time or full-time career well into their 60s. However, everyone’s lifestyles and health are different, and many don’t want to wait too long to enjoy their retirement and Social Security benefits .
3. You Give Yourself More Time to Save
If you delay your Social Security and retirement age, you'll give yourself more time to save.
The longer you wait to claim Social Security, the more time you allow yourself to save for retirement. As noted above, if you continue working and putting away money toward your retirement, you will have more funds once you reach peak retirement age.
Additionally, many people will wait until they earn a pension that can support them throughout their retirement years. Because many pensions depend on years of service, you may need to reach a certain age before being able to claim it.
2. You’ll Have No Earnings Limit
Waiting until you reach the full retirement age will ensure you don't face any earnings limits.
As briefly mentioned earlier, if you wait to claim Social Security benefits until you reach your full retirement age, you will not be subject to any earnings limit. However, if you choose to retire before the age of 67, your benefits will be reduced by a specific amount as you go over the limit.
According to SBA , “You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.”
The SBA follows these earning limits to reduce Social Security benefits: “If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit … In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.”
1. You’ll Receive Larger Checks
The No. 1 reason to claim Social Security at age 67 is that you will receive 100% of your benefits. While you can — and many do — claim Social Security before 67 (at age 62 or later), they do not access the full extent of their benefits.
According to the SBA , “The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710.”
Waiting until you’re 67 means you can enjoy consistent, higher payments and 100% of your benefits throughout your retirement.
Why We’re Covering This
The timing of when you claim Social Security can greatly impact the amount of payments and benefits you receive. The above information sheds light on why it’s a good idea to hold off on claiming until you’re 67.
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