Social Security is one of the most crucial government programs, benefiting nearly 70 million Americans. However, with discussions surrounding changes in the retirement age, many people are unsure about when they can start claiming their benefits. The Social Security retirement age varies depending on when you were born, and claiming benefits too early can reduce your monthly payments. So, when is the right time to claim? Let’s break it down.
Table of Contents
Eligibility
Many people assume that the full retirement age (FRA) for Social Security is 65, but that hasn’t been true for decades. The FRA depends on your birth year.
Here’s a quick breakdown:
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 1937 or earlier | 65 |
| 1938-1942 | 65 + a few months |
| 1943-1954 | 66 |
| 1955-1959 | 66 + a few months |
| 1960 and later | 67 |
If you were born in 1960 or later, your FRA is 67. The gradual increase in FRA was introduced to account for longer life expectancies and maintain the sustainability of the Social Security program.
Claiming
You can start claiming Social Security benefits as early as 62, but there’s a catch—your monthly payment will be permanently reduced if you claim before your FRA. The earlier you claim, the smaller your check will be.
On the other hand, if you delay claiming until after your FRA, your benefits will increase. In fact, for every year you delay beyond your FRA (up to age 70), your monthly benefit grows by about 8%.
Here’s a simple example:
| Claiming Age | Percentage of Full Benefit Received |
|---|---|
| 62 | Around 70-75% |
| 67 (FRA) | 100% |
| 70 | Around 124% |
Waiting until 70 results in the highest possible monthly benefit. This is especially important for married couples, as the higher-earning spouse’s benefit can impact the survivor benefits their spouse receives.
Strategy
Deciding when to claim Social Security depends on your financial situation, health, and expected lifespan. If you need the income sooner, claiming early might be the right choice. However, if you can afford to wait, delaying can provide more financial security in the long run.
A key piece of advice from financial planners is to keep your fixed expenses as low as possible. Housing, car payments, and utilities can take up a big chunk of your retirement income, so keeping these costs manageable gives you more financial flexibility.
Increase
There has been ongoing discussion about increasing Social Security benefits for certain groups of individuals. A survey by the National Academy of Social Insurance found strong support for increasing benefits for:
- Parents with children under the age of six
- Retired workers who had physically demanding jobs
These individuals often miss years of work due to childcare responsibilities or early retirement due to job-related physical strain, impacting their Social Security benefits. The idea is to provide financial relief to these groups to bridge the gap in their retirement income.
Social Security remains a critical source of income for millions, but knowing the best time to claim benefits is essential. Whether you choose to claim early or delay, planning ahead will help ensure a comfortable retirement.
FAQs
What is the full retirement age?
The full retirement age depends on your birth year, ranging from 65 to 67.
Can I claim Social Security at 62?
Yes, but your monthly benefits will be permanently reduced.
Is it better to wait until 70 to claim Social Security?
Waiting until 70 increases your monthly benefit by about 8% per year after FRA.
Do married couples need to consider survivor benefits?
Yes, the higher-earning spouse’s benefit affects the surviving spouse’s income.
Will Social Security benefits increase for certain groups?
There is support for increasing benefits for parents and physically demanding workers.
