What's the best age to claim Social Security?

The decision regarding what age to file for Social Security can have a lasting impact on your finances in retirement. Richard Stephen/Getty Images

Tens of millions of Americans receive Social Security benefits each year, yet many leave money on the table when they claim their retirement money. That's because most retirees claim their benefits before they reach full retirement age, whether it's out of necessity or fear that the system might change. As a result, many retirees are getting smaller monthly Social Security checks than they would have if they'd waited to claim their benefits. 

The average Social Security benefit for retirees is just under $2,000 per month. And, while that might sound like a solid supplement, it's generally not enough to cover your expenses in retirement. High earners who wait until they're past full retirement age, though, could receive benefits worth over twice as much as the average beneficiary currently receives.

Given how much Social Security benefits can vary, it's important to know at what age you should file your claim. So what is the best age to claim Social Security so that you're maximizing this reliable source of retirement income? That's what we'll break down below.

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What's the best age to claim Social Security?

Here's the short answer: The best age to claim Social Security is ultimately when you need it most. If you're 62, out of work and struggling to pay bills, waiting until 70 to maximize your benefits isn't realistic. You need that money now. Social Security was designed as a safety net, after all, and sometimes you need to use it as such. But if you have the luxury of choice, meaning you can cover your expenses without Social Security for a few more years, waiting can pay off handsomely. 

Here's a breakdown of what to consider when making a decision:

• Claiming at 62: You can start receiving Social Security benefits at 62, but your monthly payment will be permanently reduced and will be roughly 30% lower than if you wait until full retirement age. This may be necessary if you retire early or face unexpected expenses, but it comes with a trade-off: a smaller guaranteed income for the rest of your life.
• Claiming at full retirement age: Claiming at full retirement age, which is 66 to 67, depending on your birth year, gives you your standard benefit. You avoid reductions and lock in a steady income, which can help maintain your lifestyle without sacrificing the payout.
• Delaying past full retirement age: For every year you delay Social Security beyond full retirement age, your benefits increase by about 8% annually until age 70. That means waiting until 70 can boost your monthly benefit significantly, providing a higher guaranteed income stream that can be particularly valuable if you expect to live into your 80s or beyond.
• Other factors to weigh: Your health, marital status and other sources of retirement income all play a role. Couples may strategize differently to maximize survivor benefits. Additionally, Social Security may affect the taxation of your income and your eligibility for need-based programs.

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How to avoid claiming Social Security early

For many retirees, the key to maximizing Social Security benefits is creating alternative income streams that let you delay your claim and build a financial bridge to age 70, when your benefits reach their maximum value. Here are some options for doing that:

• Maximize your 401(k) and IRA withdrawals: This might seem counterintuitive, but using your retirement accounts first can make sense. Unlike Social Security, these accounts don't grow at a guaranteed 8% annually. Consider drawing from these accounts strategically while your Social Security benefits continue to grow.
• Create a bond ladder or CD ladder: You can also build a series of bonds or certificates of deposit (CDs) that mature annually between now and age 70. This creates predictable income without market risk, giving you the confidence to let Social Security grow.
• Consider an immediate or deferred income annuity: While annuities can have their downsides, these unique insurance products can provide guaranteed retirement income that bridges the gap to age 70 (and lasts for the rest of your life). 
• Part-time work or consulting: Even modest earnings from part-time work can help you delay Social Security. Just be mindful of Social Security's earnings test if you claim benefits before full retirement age, as earning too much can temporarily reduce your benefits.
• Other guaranteed income: Pensions or rental income can also offset the need to claim early, letting your Social Security benefits compound over time. 

The bottom line

There isn't a one-size-fits-all answer for the best age to claim Social Security. For some, claiming early at 62 makes sense if finances are tight. For others, delaying until 70 can maximize lifetime benefits and provide stronger financial security in later years. The key is to balance your immediate needs with long-term planning, and to consider strategies that let you postpone claiming while still covering living expenses. By building alternative income streams and planning ahead, you can give yourself the flexibility to make that choice based on what's best for your long-term financial security, not just what you need today.