Sooner or Later? Picking the Right Start Date for Your Social Security Benefits
Deciding when to start receiving Social Security benefits can be a tough call for seniors. You can start claiming Social Security benefits as early as age 62. But if you want to receive full benefits, you'll need to wait until you reach your full retirement age (FRA), which varies based on when you were born. And, if you wait a little longer, you'll receive even bigger monthly payments.
There's no universal "right" or "wrong" choice. The optimal start date depends on your personal circumstances and preferences. Here are answers to some common questions to help guide your decision.
What's My FRA?
According to the Social Security Administration (SSA), you're entitled to receive 100% of the benefits based on your earnings history when you reach your FRA. Your FRA depends on the year you were born:
- 66 and 10 months for people born in 1959, and
- 67 for people born in 1960 and later.
For example, if you were born in January 1959, you can claim your full benefits starting in November 2025. People born before 1959 have already reached their FRAs. (The FRA has been gradually increasing from age 65, which applied to people born in 1937 or earlier.)
What Are the Pros and Cons of Claiming Benefits Early?
You can start claiming Social Security benefits as early as the month you turn age 62. The downside is that your monthly benefits are permanently reduced by as much as 25% of the FRA amount.
The month you turn 62 isn't your only early option. You can start claiming benefits any time after age 62 that makes sense for you. The amount of the benefits reduction depends on how many months you claim early, and different formulas apply for months within vs. beyond 36 months before FRA.
In a nutshell, if you claim your Social Security benefits early, you'll receive more benefits payments than if you wait. But each monthly payment will be less than the full amount. The longer you hold out before hitting your FRA, the closer your monthly benefits will be to the full benefits.
What Are the Pros and Cons of Delaying Benefits Beyond My FRA?
You aren't required to start receiving Social Security benefits when you reach your FRA. You can postpone them past your FRA. This will entitle you to higher monthly payments once you claim benefits. Essentially, for those born in 1943 or later, benefits are increased by 8% for each year you delay taking benefits until age 70. Once you reach 70, the monthly benefits amount maxes out.
If you postpone claiming benefits past your FRA, you'll get fewer benefits payments than if you'd elected to start benefits at your FRA. But each payment will be higher than the FRA amount. The longer you hold out after hitting your FRA (until age 70), the higher your monthly benefits will be. Because benefits max out at age 70, there's no reason to delay them past that age.
A downside of waiting until age 70 is that if you die before that age, you won't collect any benefits. However, if that happens and you're married, your spouse could be entitled to survivor benefits based on your benefits. And delaying your benefits increases the eventual spouse benefit or survivor benefit.
5 Factors to Consider
Before you turn 62, you'll need to carefully evaluate your situation and think about the start date that's right for you and your family. If you're over age 62 and haven't claimed Social Security benefits yet, you also should be thinking about when you want to begin claiming them. The following five key factors may affect your decision:
1. Employment status. If you receive Social Security benefits before your FRA and you continue to work, your benefits will be temporarily reduced. Under the so-called "earnings test," you forfeit $1 in benefits for every $2 earned above an annual limit ($23,400 for 2025). In the year in which you reach your FRA, the reduction is $1 in benefits for every $3 over another limit ($62,160 for 2025). This reduction applies only to months before you reach your FRA. Beginning with the month you reach FRA, your Social Security benefits won't be reduced, no matter how much you earn.
2. Accumulated wealth. Do you have enough money saved for retirement? If not, you might need to start collecting your benefits early. If you're financially secure, you might decide to hold off.
When computing your monthly income needs, remember that many people spend less in retirement than they did when they were younger. Plus, if you're investing at least part of your Social Security benefits and other savings, you're putting away more money to work for you. Your financial or tax advisor can help you determine your "breakeven" point. This depends on your benefits amount and assumptions about your life expectancy, taxes and investment opportunities.
3. Health status. If you have severe health conditions, you may be inclined to take benefits earlier than your FRA. For example, Social Security benefits can help fill the gap if you're forced to retire prematurely. Also, if you die before you start claiming benefits, you'll have missed out on benefits you could have received.
4. Spousal benefits. A married couple should evaluate benefits together. Notably, the survivor benefits for a spouse who earned little during their working years may reflect the record of a deceased spouse's benefit.
5. Tax implications. The federal income tax treatment of your Social Security benefits requires a complex annual calculation based on two income tiers. The income thresholds for the two tiers are relatively low and aren't indexed for inflation. However, even if you exceed both tiers, you can never be taxed on more than 85% of your Social Security benefits.
Also, be aware that legislators have introduced various bills that would modify the Social Security system. Although Congress hasn't yet voted on these proposals, there's growing support for Social Security reform.
A recent report from the Social Security Board of Trustees found that the Social Security system will collect enough tax revenue to fully cover promised benefits and administrative costs only through 2033. To get the system back on track, Congress could enact Social Security tax hikes in the form of higher rates or a higher Social Security tax wage base (or both). Another potential fix would be to reduce benefits. As of this writing, there's no consensus on changes that should be made, if any.
Bottom Line
The timing of Social Security benefits isn't a decision to be taken lightly. Before you turn 62 (or after if you're already over 62 and haven't begun claiming benefits yet), gather all the necessary data and personal information. Then meet with your tax and financial advisors to develop the right plan for your circumstances.