The question of when to start claiming Social Security is on the minds of many retirees. There are many factors at play in making the decision, such as health, marital status, and retirement goals.
One financial services company has explained how to best decide what the right choice is, depending on one’s own individual circumstances.
While people can claim from the age of 62, few know that waiting longer can provide them with higher benefits.
Social Security benefits can be claimed until the age of 70. Generally, the monthly check will be less the earlier one starts claiming. It also plays a role when deciding whether to have more smaller checks, or fewer but larger checks.
But when is the best time start claiming? According to the Financial Services website The Motley Fool, here are the most popular ages for claiming retirement benefits. The information is based on the most recent data from the Social Security Administration.
Age 62
This is the age people first become eligible for the benefit. Roughly a quarter of the U.S. population, both male and female, start claiming at this age. This is beneficial for people who are looking for supplemental income in retirement, have health issues that could shorten their life, or are on a low income with a spouse who is still in employment.
The benefit at this age, however, is smaller, with monthly payments averaging around $1,400 as of this year, depending on individual circumstances.
Age 66–67
Waiting until full retirement age, which currently stands at just over 66, is the middle ground, and includes those born between 1943 and 1954. The full retirement age increases by 2 months for each year you were born after 1954, until it reaches age 67 for anyone born in 1960 or later.
The monthly payment at this age averages around $2,500 as of this year, depending on whether full retirement age has been reached, as well as individual circumstances. Thirteen percent of women and 15 percent of men chose to opt for this age in 2022.
Age 65
When Social Security began, 65 was the official age at which Americans could receive full retirement benefits. Although the age for full retirement benefit has increased since then, age 65 is the age people become eligible for Medicare, the federal health insurance program for seniors.
Roughly 13 percent of people, equally proportioned across both sexes, choose this age to receive their Social Security, which pays a monthly amount of around $2,100, depending on individual circumstances.
Best Age to Start Claiming
While waiting longer can be beneficial for some, as it increases the monthly Social Security payment, for many this is not a feasible option. For those who have a spouse or ex-spouse, waiting until age 70 may be the best option for those who can afford to do so.
Those who wait longer will also see their personal savings protected in the event they live longer than expected. However, less than 10 percent of both men and women in the United States waited until 70 or older to claim benefits in 2022, although there has been a gradual increase in the age over the years.