The Pros and Cons of Claiming Benefits Early vs. Waiting
Deciding when to start claiming Social Security benefits is a major financial decision that can impact your retirement income for the rest of your life. While you can start claiming as early as age 62, waiting until full retirement age (FRA) or even age 70 can increase your monthly benefits. However, the best choice depends on factors like your health, financial needs, and expected lifespan.
This guide will help you weigh the pros and cons of claiming early vs. waiting, so you can make the best decision for your situation.
Claiming Social Security at Age 62 (Early Retirement)
Pros of Claiming Early
✅ You get benefits sooner – If you need income immediately, claiming at 62 provides financial relief.
✅ You may collect for a longer period – If you have a shorter life expectancy due to health concerns, starting early may allow you to receive more total benefits.
✅ You can supplement your income – If you plan to work part-time in early retirement, Social Security can provide additional financial security.
Cons of Claiming Early
❌ Reduced monthly benefits – Claiming at 62 results in a permanent reduction of 25% to 30% compared to your full retirement age benefits.
❌ Earnings limit – If you work while collecting benefits before FRA, your benefits may be temporarily reduced if your income exceeds a certain threshold.
❌ Smaller cost-of-living adjustments (COLAs) – Since COLAs are based on your monthly benefit, starting with a lower amount means smaller annual increases.
Claiming at Full Retirement Age (FRA) – 66 to 67
Pros of Waiting Until FRA
✅ Full benefits – You receive 100% of your entitled Social Security benefit.
✅ No earnings penalty – If you work while collecting benefits after FRA, your Social Security payments won’t be reduced.
✅ Better spousal and survivor benefits – Your spouse may receive a larger benefit if you wait until FRA.
Cons of Waiting Until FRA
❌ Delayed access to money – You miss out on years of payments you could have received earlier.
❌ Health and lifespan uncertainty – If you have a shorter life expectancy, delaying may not be beneficial.
Claiming at Age 70 (Maximum Benefits)
Pros of Waiting Until 70
✅ Increased monthly benefits – Your benefit grows by about 8% per year after FRA until age 70, meaning you could receive up to 32% more than at FRA.
✅ Higher lifetime earnings if you live long – If you live into your 80s or beyond, waiting can maximize total benefits.
✅ Stronger financial security – A larger monthly check helps with healthcare and other retirement expenses.
Cons of Waiting Until 70
❌ Delaying means missing years of payments – If you don’t live long enough, you may not fully benefit from the larger checks.
❌ You may need other income sources – If you retire before 70, you’ll need savings or other income to cover expenses.
Which Option Is Best for You?
The right time to claim depends on your personal situation.
- Claim early (62-65) if you need income immediately, have a shorter life expectancy, or don’t plan to work.
- Claim at FRA (66-67) if you want full benefits and flexibility to work without penalties.
- Wait until 70 if you want the highest monthly benefit and expect to live longer.