AARP Hearing Center
There are lots of things to consider as you plan for retirement, and a key consideration is when to start collecting Social Security. We are here to help you assess your options.
For more information, visit: aarp.org/socialsecurity
Key takeaways
- Weigh Social Security timing decisions by evaluating income needs, savings and retirement goals.
- Understand claiming at 62 reduces monthly benefits compared to full retirement age payouts.
- Delay benefits to age 70 to maximize monthly Social Security income significantly.
- Consider health, life expectancy and work plans when choosing Social Security start age.
Summary
Social Security claiming age is a key retirement planning decision that directly affects lifetime income. Deciding when to begin depends on factors like current income, savings and whether you are still working. Benefits can start at age 62, but early claims reduce monthly payments, while waiting until full retirement age provides the full calculated benefit.
Delaying benefits until age 70 offers the highest monthly payment, but the right choice varies based on personal circumstances. Health, life expectancy and long-term financial needs all play a role in determining whether to claim earlier for immediate income or wait for a larger benefit later.
The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
Full transcript
[0:00:00] Hi, I’m Mary Liz Burns, and at my work with AARP,
[0:00:04] I try to simplify the more complex aspects of Social Security.
[0:00:08] Retirement is a complicated time, with lots of details to figure out.
[0:00:12] I’ve heard from so many people like you that one of your biggest questions is, “What is the best age to start collecting Social Security?”
[0:00:22] Seems like the answer should be simple, right?
[0:00:25] But because you can start collecting Social Security retirement benefits starting at age 62, and because when you file for benefits affects how much money you will receive each month for the rest of your life, it can be a tough call to make.
[0:00:40] You’ll want to assess your cash flow needs both now and down the road.
[0:00:44] It’s probably a good idea to aim high.
[0:00:47] Guess too much rather than too little, just in case.
[0:00:50] Here are a few things to consider.
[0:00:52] What’s your current income?
[0:00:54] Are you still working?
[0:00:55] And if you are, how much longer do you plan on doing so?
[0:00:59] Do you need the supplemental income from Social Security now, or can you wait?
[0:01:04] You also need to take into account how much you’ve saved for retirement.
[0:01:08] Social Security only covers around 40% of retirement income on average.
[0:01:13] Will your IRA or 401(k) give you enough so you don’t outlive your money?
[0:01:18] Keep in mind, the answers will depend on things like where you live and what you want to do in retirement.
[0:01:24] Then there’s health issues and life expectancy to consider.
[0:01:28] You might even want to factor in how your family history could affect your longevity, especially if you’re struggling with illness.
[0:01:35] In that case, maybe it’s better to collect sooner rather than later.
[0:01:40] All these circumstances are important, because your age when you file affects how much money you’ll receive.
[0:01:46] Simply put, you can start collecting Social Security retirement benefits starting at age 62, but this will reduce your payment by as much as 30% compared to starting at your full retirement age, which is currently somewhere between 66 and 67, depending on when you were born.
[0:02:04] If you can wait until full retirement age, Social Security will pay you 100% of the benefit amount calculated from your lifetime earnings history.
[0:02:14] I know, it could be a little confusing.
[0:02:16] Here’s an example.
[0:02:17] Let’s say your monthly benefit would be $1,000 at your full retirement age of 67.
[0:02:23] But if you decide to file at 62, your monthly benefit would drop to $700 permanently.
[0:02:29] The reason why they do this is to account for the longer time you’re expected to receive benefits, based on average U.S. life expectancy.
[0:02:37] If you can swing it, waiting until age 70 will give you the largest possible monthly payment.
[0:02:42] Using our earlier example, your benefit at 70 would be $1,240 a month, 77% more than you would get by claiming at 62.
[0:02:53] So it comes down to a question of, “Do I want to get a smaller payment for a longer period or start later and get a bigger monthly check?”
[0:03:03] Knowing how all this works is a great first step toward making the best choice for you and your family.
[0:03:09] If you have more questions about the best age to start collecting Social Security benefits, drop us a note in the comments and we’ll consider it for a future video.
[0:03:18] For more helpful information, visit AARP.org/socialsecurity
[0:03:25] Please take a moment to subscribe to our YouTube channel so you won’t miss out on future videos like this from AARP.
