The decision to apply for Social Security depends on your circumstances. You can start collecting benefits at 62 or wait until you’re 70, according to the Social Security Administration (SSA).
But a lot can happen in that window. Many with health conditions may choose to take Social Security early, while others who want to continue working might postpone it. What are the benefits and disadvantages to going early or waiting to apply for benefits?
What Is Full Retirement Age?
Full retirement age (FRA) depends on the year you were born. According to the IRS, for those born in 1960 or later, the FRA is 67. At that age, you'll receive 100 percent of your retirement benefit. Those who were born between 1943 and 1959 reach FRA at 66.For this article’s purpose, 1960 will be used when giving an example.
Taking Retirement Benefits Early Affects Dollar Amount
If you take Social Security benefits early, the amount you receive will be lower than if you had waited until FRA. And you will not be able to receive those or make that reduction up. You will still receive cost-of-living adjustments (COLAs). But you won’t receive what you would have had you waited until 67.According to the IRS, if you apply for benefits at 62, you will receive 70 percent of what you would have if you had waited until FRA. The following are the percentage amounts you'd receive for waiting additional years:
- 63: 75 percent
- 64: 80 percent
- 65: 86.7 percent
- 66: 93.3 percent
- 67: 100 percent
Increase in Benefits When You Wait to Apply
You can also choose to work beyond your retirement age and not take benefits. According to the IRS, if you choose to do this, 8 percent is added to your benefit for each full year past your FRA until you reach 70.Regardless of whether you wait, you must still apply for Medicare at 65, or you'll be penalized.
Break-Even Point of Receiving Benefits at 70
Many people fear they will outlive their money. Waiting to receive benefits to have that extra 8 percent per year may make sense.But how long will you live, and will you break even monetarily if you wait?
According to the National Center for Health Statistics, in the United States, the average life expectancy for males is 75.8 years. A female is expected to live until 81.1. Based on these numbers, is it worth it to wait until 70?
Consider the break-even point of receiving Social Security benefits. According to the Journal of Accountancy, the break-even point is typically 12–14 years after you start receiving benefits at age 70. So, if the 12 years are used, that would mean you won’t break even or come out ahead until reaching 82. From that age on, you will make a profit from delaying your benefits.
Surviving Spouse Considerations
If you are married, it often makes sense for the higher earner to wait to start collecting benefits. This will increase benefits not only for the benefit recipient but also for the surviving spouse.If one spouse has a much lower benefit, they may want to collect sooner, then switch to spousal benefits later.
Married couples should discuss Social Security benefits and incorporate them into their retirement plan. Speak with tax and legal advisers to determine what will work for your goals.
Future of Social Security Fears
Some people claim benefits early out of fear. They realize that the Social Security system is underfunded. According to the SSA, it is projected to be depleted in 2034.Because many are nervous, they choose to take benefits earlier than their FRA.
Taking Social Security at 62
According to the SSA, in 2022, 24.5 percent of new Social Security recipients were 62. That’s down from 2021, when 26.1 percent were 62.While you’ll receive less money if you claim Social Security benefits early, there are reasons you may want to do it.
If you are no longer able to work and don’t have enough savings to sustain you until FRA, you might want to apply for benefits early.
Those with a chronic health condition or family history of illness may feel they have a shorter life expectancy. In this case, taking an early Social Security benefit may make sense.
Deciding When to Take Social Security Benefits
If you haven’t already, go to the mySocial Security website and sign up for an account. You'll be able to see what your benefit will be at every age from 62 to 70. You can then use it to make decisions regarding your retirement.If you’re married, the age you start drawing benefits could affect your spouse. Review both your and your spouse’s benefits to determine whether one should wait and the other withdraw benefits.
Remember, there is a break-even point to waiting until 70. So be sure to crunch the numbers to determine whether waiting is the right move.
The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
