Claiming Social Security at 62 vs. 67 vs. 70: What’s the Real Difference?
Claiming at 62
If you start taking Social Security at 62, it’s often because you need the income and don’t have other resources to rely on. However, this comes with a significant reduction in benefits compared to waiting until your full retirement age.
Claiming at Full Retirement Age (67)
At 67, you can claim your full Social Security benefit. While this is a safe option, you’ll miss out on the potential growth you could receive by delaying until 70.
Maximizing at 70
If you wait until age 70, your benefit increases by 8% per year beyond 67, plus adjustments for inflation. That means if inflation runs at 2%, you’re looking at about a 10% increase annually. For many families, this strategy makes sense: spend down other retirement assets first, then maximize Social Security at 70.
The Break-Even Point
Typically, the break-even age is between 78 and 80. If you live beyond this point, delaying Social Security until 70 usually results in more lifetime income.
What About Social Security’s Future?
While Social Security is currently funded through 2033, projections suggest that if nothing changes, only 75% of benefits will be covered after that. Most likely, payroll taxes will increase to keep full benefits intact. Despite concerns, maximizing Social Security is still the best move for many retirees.
Casey Smith
President, Wiser Wealth Management
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