If you qualify for Social Security retirement benefits you can sign up to begin getting them any time after age 62. While it may sound appealing to start collecting the money as soon as possible, your monthly payments will be larger if you delay claiming them.
According to 2022 data from the Social Security Administration, there’s a wide range of ages at which people start to claim their benefits, as well as some marked differences in when men and women typically start.
Read on to find out how the age at which you start collecting your benefits impacts your monthly payout — and the most popular ages when men and women begin.
How Much Your Payment Will Be Reduced if You Start Collecting at 62
Your full retirement age, as defined by Social Security, depends on your birth year. It’s crucial to realize that the Social Security payments you qualify for will be reduced if you claim them before your full retirement age.
Here is the amount your payment will be reduced by if you start to take your retirement benefits at age 62.
“A lot of people just take it as soon as they can, and if you take it too early, you’re really leaving a lot of money on the table,” says Joel Shaps, retired president, owner and financial advisor at Bedrock Capital Management.
So, should you start early or wait it out? Here is what people who qualified for Social Security retirement benefits did in 2022 and how it affected their monthly payouts.
Age 62
Age 62 is the earliest possible age you can sign up for Social Security retirement benefits. According to the SSA data, 22.9% of men chose this age to start to collect compared with 24.5% of women.
The percentage of people signing up for Social Security at the minimum age has been declining over the years. For example, in 2014, 34.5% of men and 39.7% of women began receiving benefits at age 62.
As an example of how much you may forfeit with early benefits, someone born between 1943 and 1954 who was eligible for $1,000 at the age of 66 got only $750 if they started getting benefits at the age of 62.
Age 63
Age 63 is one of the least popular options for choosing to start Social Security benefits — 6.4% of men and 6.6% of women began claiming their benefits at this age in 2022.
Using the example above, if you were eligible for a $1,000 monthly payment at full retirement age, the amount dropped to $800 a month.
Age 64
This is another relatively unpopular age to begin collecting Social Security benefits — just 6.7% of men and 7.3% of women started collecting at age 64 in 2022.
That $1,000 payment would drop to $866 if you started collecting at age 64.
[READ: Frequently Asked Social Security Benefit Questions.]
Age 65
In 2022, 13.3% of men and 13.4% of women decided to collect Social Security at age 65.
Full retirement age used to be 65 for people born in 1937 and earlier. But it gradually increased in two-month increments to age 66 for those born between 1943 and 1954. Note that the full retirement age increases to 67 for everyone born in 1960 or later.
So what does this do to your monthly payout if you take it a year before full retirement? People born between 1943 and 1954 got monthly payments of $933 instead of $1,000.
Age 66
Unsurprisingly, beginning to collect when you’re eligible for full Social Security retirement benefits was the most popular option for both sexes, with 28.4% of men and 26.5% of women beginning at this age in 2022.
“When you take it at your full retirement age, there are no reductions in benefits,” says Christopher Rhim, certified financial planner for Green View Advisors in Norwich, Vermont.
In addition, you can have a disabled worker benefit automatically converted to a retired worker benefit upon reaching your full retirement age.
Age 67
If you want to enjoy even larger monthly payments you can delay signing up for Social Security and reap the rewards. In 2022, 15% of men and 13.4% of women did this.
People born after 1959 can claim unreduced Social Security payments starting at age 67. And people born between 1943 and 1954 who delayed claiming their Social Security benefits until age 67 got an 8% increase in their payments, boosting a $1,000 monthly payment to $1,080.
[READ: You May Be Getting More From Social Security Than You Think]
Age 68
In 2022, 13.4% of men and 13.1% of women delayed their Social Security benefits until they turned 68.
Why? People born between 1943 and 1954 got 16% more if they claimed Social Security payments at age 68, increasing a $1,000 Social Security payment to $1,160 per month.
Age 69
In 2022, 13.8% of men and 12.2% of women waited another year to collect their Social Security benefits at the age of 69.
Pushing it off until this age has a financial advantage. Those born in 1960 or later get 16% more by claiming their Social Security benefits at age 69, and those born between 1943 and 1954 boosted their benefits by 24%.
Age 70 and Above
In 2022, 8.4% of men and 9.3% of women between the ages of 70 and 74 began taking their benefits. Just 0.2% of both sexes started at age 75 or older.
Older baby boomers could augment their Social Security benefits by 32% by waiting until age 70 to sign up, increasing that $1,000 Social Security payment to $1,320 per month. People born after 1959 will get 24% more by claiming payments beginning at age 70.
To Start Early or Begin Late
Clearly, there is a financial advantage to waiting at least until you reach your full retirement age to collect Social Security retirement benefits. Depending on your circumstances, though, you may decide to start early and not get quite as much or begin later and reap some extra rewards.
“If the goal is to get as much Social Security income as possible, the way you get that is by claiming as late as possible,” says Alicia Munnell, professor of management sciences at Boston College’s Carroll School of Management. “If you want a higher Social Security benefit, wait until 70.”
Just don’t wait too long. After age 70, there is no additional increase for delaying your Social Security payments.
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The Most Popular Ages to Collect Social Security originally appeared on usnews.com
Update 08/14/23: This story was previously published at an earlier date and has been updated with new information.
