When Should You Claim Social Security? Key Factors to Consider

The decision of when to claim Social Security benefits is an important financial decision. For many, Social Security provides a critical stream of income throughout retirement, and optimizing the timing can make a significant difference. For some, it makes sense to claim early (age 62); for others, it may be beneficial to delay (up to age 70).

Who Is Eligible for Social Security Retirement Benefits?

Any U.S. worker who has accrued at least 40 credits is considered “fully insured.” A credit is earned based on income, with a maximum of four credits per year. In 2026, one credit is earned for each $1,730 of covered earnings, meaning $6,920 earns the full four credits for the year.

In most cases, this equates to roughly 10 years of work while paying into Social Security. After meeting this requirement, an individual becomes eligible for retirement benefits, with the amount based on their earnings history.

Spouses may also be eligible for benefits, typically up to 50% of the primary insured amount (PIA), depending on their own work record and claiming strategy.

When Can Benefits be Claimed?

For individuals born in 1960 or later, full retirement age (FRA) is 67. At this age, a fully insured worker can claim their full benefit.

However, benefits can be claimed as early as age 62 at a reduced amount, or delayed until age 70 for an increased benefit. Delaying until age 70 results in the highest possible monthly payment.

Benefits are reduced for each month they are claimed before FRA:

• 5/9 of 1% per month for the first 36 months
• 5/12 of 1% per month beyond that 

This results in roughly a 30% permanent reduction when claiming at age 62 versus age 67.

Conversely, benefits increase by 8% per year (delayed retirement credits) for each year benefits are delayed past FRA, up to age 70. For example, delaying from age 67 to 69 increases the benefit to approximately 116% of the FRA amount.

These higher benefits continue for life and are adjusted annually for inflation through cost-of-living adjustments (COLAs).

What Is the Optimal Age to Claim?

The optimal age to claim benefits depends on several key factors, including health and life expectancy, employment status, and cash flow needs.

While claiming early reduces the monthly benefit, delaying reduces the total number of payments received. The decision is a tradeoff between amount per payment vs. number of payments received.

Life Expectancy

If you are in poor health or have reason to expect a shorter life expectancy, it may make sense to claim benefits earlier to maximize total payments received.

In many cases, the “breakeven” point, where total lifetime benefits from delaying surpass early claiming, falls in the late 70s to early 80s. If you live beyond this range, delaying often results in a higher cumulative benefit. If not, claiming earlier may have been the better decision.

Employment Status

Employment can also impact the decision.

If you claim benefits before FRA and continue working, benefits may be temporarily reduced:

• $1 reduction for every $2 earned above $24,480 (2026 limit)
• In the year you reach FRA, the reduction is less severe ($1 for every $3 above a higher threshold) 

Importantly, these reductions are not lost permanently, benefits are recalculated at FRA to account for withheld amounts.

For those still earning significant income, delaying benefits may be more advantageous. Additionally, as income rises, a greater portion of Social Security benefits may become taxable.

Cash Needs

In some cases, a person simply needs the income and cannot afford to delay benefits. In this instance, it makes sense to simply claim benefits. 

However, for those that don’t have cash needs, it can often make sense to delay the payments to achieve a higher payment amount later in their life.

Planning Considerations

The choice of when to claim the benefits is unique to each situation. As discussed above, there are many different factors to account for. Since life expectancy is not known, it often comes down to making reasonable assumptions.

Social Security is often a foundational component of retirement income, so the decision should be made thoughtfully and in coordination with your broader financial plan.

Please consult with a financial professional to evaluate your specific claiming options and how they integrate with your overall retirement strategy.

- Bill Rautiola, RICP ®, AIF ®, PPC ®

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.