For decades, age 62 has been the earliest point at which Americans could claim Social Security retirement benefits.
However, claiming benefits at this age results in a permanently reduced monthly payment. To maximize your Social Security benefits, understanding the impact of your claiming age is crucial.
Understanding Full Retirement Age (FRA)
Your Full Retirement Age (FRA) is the age at which you are entitled to 100% of your Social Security benefits. The FRA varies depending on your birth year:
| Year of Birth | Full Retirement Age |
|---|---|
| 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 |
For individuals born in 1960 or later, the FRA is 67.
Impact of Claiming Age on Benefits
Claiming Social Security benefits before reaching your FRA results in a permanent reduction in your monthly benefit amount. Conversely, delaying benefits past your FRA increases your monthly benefit due to Delayed Retirement Credits (DRCs).
| Claiming Age | Benefit Reduction/Increase |
|---|---|
| 62 | Up to 30% reduction |
| 63 | Approximately 25% reduction |
| 64 | Approximately 20% reduction |
| 65 | Approximately 13.3% reduction |
| 66 | Approximately 6.7% reduction |
| 67 (FRA) | No reduction |
| 68 | 8% increase |
| 69 | 16% increase |
| 70 | 24% increase |
Delaying benefits until age 70 can result in a monthly benefit that is 24% higher than at FRA.
Maximum Social Security Benefit in 2025
In 2025, the maximum monthly Social Security benefit for someone retiring at age 70 is $5,108. To qualify for this amount, you must have earned the maximum taxable earnings for at least 35 years and delay claiming benefits until age 70.
| Claiming Age | Maximum Monthly Benefit (2025) |
|---|---|
| 62 | $2,710 |
| 67 (FRA) | $3,822 |
| 70 | $5,108 |
These figures illustrate the significant impact that delaying benefits can have on your monthly income.
Calculating Your Benefit
Your Social Security benefit is calculated based on your Average Indexed Monthly Earnings (AIME), which considers your 35 highest-earning years.
If you have fewer than 35 years of earnings, zeros are averaged in, reducing your benefit. Maximizing your earnings and working at least 35 years can increase your benefit amount.
Steps to Maximize Your Social Security Benefits
- Work for at least 35 years: Ensure you have 35 years of earnings to avoid zeros in your benefit calculation.
- Earn higher wages: Higher earnings increase your AIME, leading to a higher benefit.
- Delay claiming benefits: Waiting until age 70 maximizes your monthly benefit due to DRCs.
- Monitor your earnings record: Regularly check your Social Security statement to ensure accuracy.
- Consider your health and financial needs: While delaying benefits increases your monthly amount, assess your personal circumstances to determine the best time to claim.
While claiming Social Security benefits at age 62 is an option, it results in a permanently reduced monthly benefit. To maximize your Social Security income, consider delaying benefits until age 70, especially if you have a long life expectancy and can afford to wait.
By understanding the impact of your claiming age and taking steps to maximize your earnings, you can secure a more comfortable 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.