Kim
Claiming Social Security benefits at age 62—the earliest eligible age—might seem appealing, especially if you’re eager to retire. However, it’s crucial to understand that this decision leads to a permanent reduction in your monthly payments.
To make the most of your benefits, it’s essential to comprehend how your claiming age affects the amount you receive.
Understanding Full Retirement Age (FRA)
Your Full Retirement Age (FRA) is the age at which you can claim 100% of your scheduled Social Security benefits. The FRA depends on your year of birth, increasing gradually for those born after 1954. For individuals born in 1960 or later, the FRA is 67.
Here’s a breakdown:
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
How Claiming Age Affects Monthly Benefits
Choosing to claim benefits before your FRA results in a permanent reduction in your monthly amount. Conversely, delaying your benefits beyond FRA increases your monthly payment due to Delayed Retirement Credits (DRCs).
Here’s how your monthly benefit adjusts based on your claiming age:
| Claiming Age | Benefit Adjustment |
|---|---|
| 62 | Up to 30% reduction |
| 63 | About 25% reduction |
| 64 | About 20% reduction |
| 65 | About 13.3% reduction |
| 66 | About 6.7% reduction |
| 67 (FRA) | No reduction |
| 68 | 8% increase |
| 69 | 16% increase |
| 70 | 24% increase |
By waiting until age 70, retirees can receive a monthly benefit that is 24% higher than if they claimed at their FRA.
Maximum Social Security Benefits in 2025
As of 2025, the maximum monthly Social Security benefit for someone retiring at age 70 is $5,108. To qualify for this amount, you must have consistently earned maximum taxable wages for at least 35 years and delay claiming benefits until age 70.
Here’s how the benefits vary by claiming age:
| Claiming Age | Maximum Monthly Benefit (2025) |
|---|---|
| 62 | $2,710 |
| 67 (FRA) | $3,822 |
| 70 | $5,108 |
These figures demonstrate the significant financial advantage of postponing benefits beyond FRA.
How Benefits Are Calculated
Your Social Security benefit is determined using your Average Indexed Monthly Earnings (AIME), which considers your 35 highest-earning years. If you worked fewer than 35 years, zero-income years are factored in, reducing your average and thus your benefit.
Ensuring consistent and higher earnings throughout your career can significantly increase your monthly benefit.
Tips to Maximize Your Social Security Income
- Work at least 35 years: Avoid zeros dragging down your benefit calculation.
- Increase your income: Aim for higher-paying work to boost your AIME.
- Delay claiming until age 70: If possible, to maximize DRCs.
- Review your earnings history: With the Social Security Administration to correct any errors.
- Evaluate your health and finances: Before deciding when to claim, as delaying may not suit everyone.
While the option to claim at age 62 exists, doing so reduces your monthly benefit permanently. If you’re in good health and can afford to delay, waiting until age 70 could significantly increase your retirement income.
Deciding when to claim Social Security benefits is a significant decision that impacts your financial well-being in retirement. While claiming at 62 offers immediate access to funds, it comes with a permanent reduction in monthly benefits.
Delaying your claim can result in higher monthly payments, providing greater financial security in your later years. Consider your health, financial needs, and life expectancy when making this decision to ensure a comfortable and secure retirement.
FAQs
Can I work while receiving Social Security benefits?
Yes, but if you are under your FRA, your benefits may be temporarily reduced if your earnings exceed certain limits. Once you reach FRA, you can work without affecting your benefits.
Will my benefits increase if I continue working after claiming Social Security?
If your current earnings are among your highest 35 years, your benefit may be recalculated to a higher amount.
Is there any advantage to delaying benefits past age 70?
No, delaying benefits beyond age 70 does not increase your monthly benefit further.