As 2025 approaches, millions of Americans are beginning to plan their Social Security benefits. One of the most important decisions you’ll need to make is the age at which to start claiming Social Security benefits. The two most common choices are age 62 and age 70, but which is right for you? Here’s a detailed look at how claiming Social Security at different ages will affect your benefits and what you should consider in 2025.
What Are Social Security Benefits?
Social Security benefits are payments made to individuals by the federal government, primarily to support retirees, disabled workers, and survivors of deceased workers. These benefits are calculated based on your earnings over the years and the age at which you begin claiming them.
Social Security is designed to be a long-term financial safety net, but the decision on when to start claiming can significantly impact the monthly payments you receive.
The Age Options for Claiming Social Security: 62 vs. 70
Claiming at Age 62
Age 62 is the earliest age at which you can begin claiming Social Security benefits, and it is often an attractive option for individuals who need the money as soon as possible. However, claiming at this age comes with some important trade-offs:
Pros of Claiming at Age 62
- Early Access to Funds: You’ll begin receiving benefits right away, which can be crucial if you need the income for living expenses, medical bills, or other needs.
- No Waiting: If you’re in good health but have concerns about living a long retirement, claiming at 62 might give you peace of mind knowing you’re accessing funds sooner.
Cons of Claiming at Age 62
- Reduced Monthly Benefits: When you claim early, your benefits are reduced by a fixed percentage. For those born in 1960 or later, the reduction is about 30% less than if you wait until your full retirement age (FRA).
- Lower Long-Term Payments: If you claim early, you will receive smaller monthly payments for the rest of your life. This can be a significant drawback if you expect to live into your 80s or 90s, as it reduces your overall lifetime benefits.
Claiming at Age 70
Age 70 is the latest age at which you can begin claiming Social Security benefits. This choice may seem distant to many, but it comes with significant benefits if you can afford to wait:
Pros of Claiming at Age 70
- Maximum Monthly Payments: If you wait until age 70, your monthly benefit will be about 32% higher than if you claimed at your full retirement age (FRA). The longer you wait, the larger your monthly check will be.
- Larger Lifetime Benefit: Although you’ll need to wait longer, the overall payout over your lifetime could be much higher because of the larger monthly payments.
- Delayed Retirement Credit: The Social Security system offers a delayed retirement credit for each year you wait past your FRA (up to age 70), which increases your monthly benefit.
Cons of Claiming at Age 70
- Late Access to Funds: You’ll have to wait until age 70 to begin receiving benefits, which could be difficult if you are in need of immediate financial assistance.
- Health Concerns: If you are in poor health or have a family history of shorter lifespans, you may not collect benefits for as long as you would if you claimed earlier.
Full Retirement Age (FRA) in 2025
Your Full Retirement Age (FRA) is the age at which you’re eligible to receive your full Social Security benefits without reductions. For most people born in 1960 or later, the FRA is 67.
If you decide to claim Social Security at your FRA, you’ll receive 100% of the benefits you’re entitled to, based on your work history. You can choose to claim early at 62 (with a reduction) or delay benefits until age 70 (with an increase).
How Will These Ages Affect Your Monthly Benefits in 2025?
Claiming at Age 62
- If you start claiming at 62 instead of your FRA (age 67), your benefits will be reduced by up to 30%. For example, if your monthly benefit at full retirement age would be $2,000, claiming at age 62 would result in a monthly payment of around $1,400.
Claiming at Age 70
- By waiting until 70, you can receive 32% more than at your FRA. Using the same example, your $2,000 benefit at FRA would increase to $2,640 per month if you waited until age 70.
Which Age Should You Choose?
The decision of whether to claim at 62 or 70 depends on several personal factors:
1. Your Health and Longevity
- If you are in good health and expect to live a long life, waiting until age 70 could provide you with significantly higher lifetime benefits.
- If you have health concerns or a shorter life expectancy, claiming at 62 might make more sense, as you’ll begin receiving payments sooner.
2. Financial Situation
- If you need the income to cover living expenses or have limited savings, claiming at 62 may be necessary.
- If you have other sources of income and can afford to delay benefits, waiting until 70 may be beneficial in the long run.
3. Your Family Situation
- Consider your spouse’s situation, especially if you are the primary earner. Your spouse may be able to claim spousal benefits based on your higher benefit amount if you delay claiming until 70, potentially boosting their income in retirement.
Conclusion
Deciding when to claim Social Security benefits is one of the most important financial decisions you will make. In 2025, the choice between claiming at 62 or 70 comes with significant trade-offs in terms of monthly benefits and long-term financial security.
If you need the money and want to access your benefits early, claiming at 62 might be the right choice. However, if you can afford to wait and maximize your monthly payments, waiting until 70 could provide you with a higher lifetime benefit. Be sure to weigh your health, financial situation, and long-term plans when making this decision.
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FAQs
Q1. What is the date I can collect Social Security benefits in 2025?
A: You can start taking Social Security at age 62, but the monthly benefit you receive will be less than what you would receive if you delay until your full retirement age or age 70.
Q2. What is full retirement age for Social Security in 2025?
A: Full retirement age (FRA) depends on the year you were born. Most individuals are eligible at 66 or 67. If you choose to retire earlier, your benefits will be smaller.
Q3. What if I take Social Security at age 62?
A: Your monthly benefit is permanently reduced for taking it early, generally around 25 to 30% less than when taken at full retirement age.
Q4. What happens if I wait until age 70 to claim Social Security?
A: If you wait until age 70, your monthly benefits will be higher due to delayed retirement credits, increasing your benefit by about 8% per year after your full retirement age.
Q5. How does the decision to claim at 62 or 70 affect my overall retirement income?
A: Claiming early at 62 gives you access to benefits earlier but at a lower rate. However, if you wait until age 70, you get more significant monthly benefits, but you have to live longer to recover the loss from delayed payments.