In some cases, filing early is the smartest Social Security move you can make.
The age at which you file for Social Security will have a lifelong impact on your monthly benefit, so it’s crucial to make this decision carefully. You can begin claiming benefits as early as age 62, though many experts recommend waiting a few years to file as it will increase your monthly payments. By delaying until age 70, you’ll collect the maximum possible benefit based on your work record.
If you’re looking to earn as much as possible each month, delaying benefits is often the way to go. In fact, the average retiree collects around $739 more per month at age 70 than at age 62, according to 2023 data from the Social Security Administration.
That said, claiming early can be a smart move in many situations. While everyone’s retirement is different, there are two strong reasons I don’t plan on waiting until age 70 to take benefits.
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1. Delaying benefits makes early retirement much more costly
The majority of seniors rely on their benefits to some degree in retirement, with a whopping 60% of current retirees saying Social Security is a major source of income, a 2024 poll from Gallup found. Even if you have plenty of savings, your benefits may still play a large role in retiring comfortably — especially if you want to retire early.
While you don’t have to begin claiming benefits as soon as you retire, the two often go hand in hand. If you retire in your early 60s but decide to delay Social Security, you’ll need to rely solely on your savings or other sources of income for several years — and that adds up quickly.
For example, say that by filing at age 62, you’d collect $1,900 per month — which is in line with the average retiree’s benefit, as of June 2024. Let’s also say that you decide to retire at 62 while delaying benefits until age 70. In this case, you’d end up forgoing roughly $182,400 in total benefits throughout the eight years between when you retire and when you begin claiming.
You’ll collect much larger checks at age 70 when you begin claiming. But unless you’re able to drastically cut your costs, you may also have to pull much more from your savings in the years leading up to taking Social Security — which may defeat the purpose of delaying in the first place.
Early retirement isn’t everyone’s goal, and if you plan to continue working until age 70 anyway, you might as well delay benefits. But if you’re dreaming of retiring as early as possible, claiming Social Security sooner can make that goal much more affordable.
2. Waiting longer involves betting on your longevity
The way Social Security is structured, you should collect the same amount over a lifetime no matter when you claim — in theory, at least. By claiming benefits early, you’ll receive smaller monthly payments but more of them in total. If you delay benefits, you’ll collect fewer checks overall, but each will be larger.
However, to “break even” with benefits, you’ll need to have an average lifespan. It’s possible to collect more in total by delaying benefits if you have a longer-than-average lifespan, but if you don’t end up living well into your 80s or beyond, you could actually receive more money overall by claiming benefits early.
Nobody knows exactly how long they’ll live, of course. But if you delay benefits until age 70, you’re essentially betting on your longevity. Life can easily throw curveballs at you, and if you develop health issues in your 70s, you could regret waiting so long to begin taking benefits.
Keep in mind, too, that it’s easier to change your mind if you file early. You have one opportunity to withdraw your application after you begin claiming, as long as it’s within 12 months of filing. You’ll need to repay whatever you’ve already received in benefits, but then you’ll be free to file again later.
If you file early and quickly change your mind, you can reverse your decision and delay, instead. But you can’t go back in time and undo your choice if you delay benefits and regret it. For those who are on the fence about when to file, claiming earlier can sometimes pose fewer opportunities for regret.
Social Security can go a long way in retirement, and the age at which you file is an incredibly important decision. By considering your personal goals and preferences, it will be easier to decide on the best age for your situation.