The $23,760 Social Security bonus most retirees completely overlook ”
As you approach retirement, you should be thinking about when you’ll claim your Social Security benefits — because when you do so can make a big difference in your financial life.
Various studies have pinpointed the best age for most people to claim, but there is no one perfect age for everyone. Read on for a Social Security refresher and a look at what studies suggest.
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Each of us has a “full retirement age” at which we can start collecting the “full” benefits to which we’re entitled based on our earnings. But we can start collecting as early as age 62, or we can delay, up to age 70.
Claiming early means you’ll receive smaller benefit checks — but many more of them. Delay beyond your full retirement age, and your benefit checks will grow by about 8% per year up to age 70.
Researchers seem to agree that most people will get the most out of Social Security by delaying claiming until age 70.
For example, a 2019 study, “The Retirement Solution Hiding in Plain Sight: How Much Retirees Would Gain by Improving Social Security Decisions,” from United Income, found that:
More recently, a 2022 paper from the National Bureau of Economic Research offered this:
We find that virtually all American workers age 45 to 62 should wait beyond age 65 to collect. More than 90% should wait till age 70. Only 10.2% appear to do so. The median loss for this age group in the present value of household lifetime discretionary spending is $182,370.
That’s the best age for most people, but not all people. Here are some (of many) considerations to help you decide your own best age to claim Social Security benefits.
Think through your decision carefully.
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