Americans can begin collecting Social Security retirement benefits at age 62, the earliest age allowed. But many experts say turning 62 may not be the best financial choice because waiting can increase your monthly payments. If you file for Social Security early, you’ll receive larger monthly checks over time, but each check will be smaller.
If you delay taking benefits, your monthly payments will increase each year until age 70. USA Today said its early calculations for 2025 showed that those who wait until age 70 to retire will live the longest on average. social security payment.
Why waiting until age 70 might cost you more
The biggest reason is that people live longer than they think, so larger monthly checks often result in more money over a lifetime. One research paper found that the average retiree who collects a pension before age 70 could lose about $182,370 in Social Security income over his or her lifetime, according to an academic paper cited by USA Today.
Reason 1: You need money now
If someone is over 62, no longer working, and has no other income, taking Social Security early may be the only viable option. Romina Boccia of the Cato Institute said via USA Today that people may need to claim early if the only option is debt. However, filing a claim at age 62 could still mean giving up about $182,370 in future Social Security income.
Reason 2: You think you won’t live long
Your life expectancy is one of the most important factors when deciding when to collect Social Security. If you live to be over 80, waiting until age 70 will generally net you more money. Many people mistakenly believe they will die in their 70s, since the average American life expectancy is about 78 years.
Experts say this is misleading because life expectancy increases as people age. When someone reaches the age of 62, they can usually expect to live into their 80s. People are more likely to underestimate their lifespan than to overestimate it, Monique Morrissey said via USA Today . However, people with terminal illnesses or serious inherited health problems may have good reasons to claim benefits early.
Reason 3: Worry about running out of money for social security
many American I am worried that social security may be short of money in the future. Current estimates suggest the program could face funding shortfalls by 2032 if Congress fails to act. Without changes, monthly Social Security benefits could be reduced by about 28%. Worried about future benefit cuts, some people are applying for Social Security earlier than planned.
A 2025 AARP survey found that about a quarter of Americans ages 62 to 66 have recently decided to take Social Security early or expect to take it early. That fear may be the biggest reason financially secure people are claiming benefits early, Monique Morrissey said via USA Today . Still, many retirement experts believe Congress may step in before slashing benefits.
Morrissey said it would be politically difficult to cut benefits for existing retirees. She said if any layoffs occurred, younger workers would be more likely to be affected than current retirees. The Motley Fool’s Robert Brokamp said he thinks there’s little chance of benefit cuts for people who are retired or close to retirement.
Reason 4: You want to invest your money
Some people believe they should collect Social Security at age 62 and invest their own money. For those born in 1960 or later, the full retirement age is 67. Taking benefits at age 62 means receiving about 30% less monthly benefit than you would receive at full retirement age. Waiting after age 67 will increase Social Security benefits by about 8% each year until age 70.
Overall, waiting from age 62 to age 70 can increase monthly benefits by about 76%. Invest early, experts say social security payment It may work in some cases, but there are risks. A Motley Fool analysis found that taking a pension at age 62 can sometimes produce better results until around age 90 if investments earn 5% a year.
If someone lives into their 90s, waiting until age 70 can still give them more lifetime income. However, experts warn that investing always carries market risk, and Social Security payments are guaranteed by the government. Monique Morrissey says most retirement experts believe the core of retirement income should be as safe and secure as possible, and Social Security can provide that security.
Experts say waiting until age 70 often gives the average American their maximum lifetime Social Security income, especially if they expect to live into their 80s or longer. But the right decision still depends on your health, income, savings, family situation and financial needs, so experts recommend considering your own circumstances before applying for benefits.
