62 or 70? When Should You Actually Take Social Security?

Deciding when to claim Social Security is one of the biggest retirement decisions many Americans will make.

You can generally begin receiving Social Security retirement benefits as early as age 62. You can also choose to wait until your full retirement age or delay your benefits beyond full retirement age, with your monthly benefit increasing until age 70.

So, should you take Social Security at 62?

Or is waiting until 70 a better strategy?

The answer is not the same for everyone.

Your health, life expectancy, income needs, retirement savings, taxes, marital situation, work status and retirement goals can all influence the decision.

The important thing is to look at Social Security as part of your overall retirement plan rather than making the decision based on age alone.

Quick Answer: Should You Take Social Security at 62 or 70?

There is no universal best age to claim Social Security.

Taking benefits at 62 gives you income sooner, but your monthly benefit will generally be lower than if you wait until full retirement age.

Waiting until 70 can provide a significantly larger monthly benefit, which may be valuable if you expect to live a long retirement and want more guaranteed income later in life. The Social Security Administration states that delaying benefits after full retirement age increases your benefit, with increases stopping at age 70.

The right question is not simply:

“Should I take Social Security at 62 or 70?”

A better question is:

“What Social Security strategy makes sense for my retirement?”

That question requires looking at your entire financial situation.

Step 1: Understand How Social Security Retirement Benefits Work

Before deciding when to claim Social Security, it helps to understand what you're actually deciding.

Social Security retirement benefits provide monthly income to eligible workers based on their earnings history and Social Security contributions.

Your benefit amount depends on several factors, including your earnings history and the age at which you begin claiming benefits.

You can generally begin receiving retirement benefits at age 62. However, if you claim before your full retirement age, your monthly benefit is permanently reduced based on how early you claim.

Your full retirement age depends on your year of birth.

For example, people born in 1960 or later have a full retirement age of 67. If someone with a full retirement age of 67 claims at 62, their retirement benefit can be reduced by as much as 30%.

On the other hand, if you wait beyond full retirement age, your monthly benefit can increase through delayed retirement credits.

Those increases continue until age 70. After age 70, delaying further does not increase your retirement benefit.

This creates an important retirement planning decision.

You are essentially choosing between receiving a smaller benefit earlier or waiting for a larger benefit later.

Step 2: Know Your Full Retirement Age

One of the first things you should determine before making a Social Security decision is your full retirement age.

Your full retirement age is the age at which you become eligible for your full retirement benefit under Social Security rules.

For many people today, full retirement age is between 66 and 67, depending on their birth year.

For people born in 1960 or later, the full retirement age is 67.

Why does this matter?

Because claiming before full retirement age generally means accepting a lower monthly benefit.

Waiting until full retirement age allows you to receive your full retirement benefit.

Waiting beyond full retirement age can increase your monthly benefit through delayed retirement credits.

For example, the Social Security Administration shows that someone with a full retirement age of 67 could receive 124% of their full retirement benefit by waiting until age 70.

The exact percentages depend on your birth year, so you should review your individual Social Security estimate rather than relying on a general example.

Step 3: Understand What Happens If You Claim Social Security at 62

Age 62 is the earliest age at which most people can begin receiving Social Security retirement benefits.

For someone who needs income sooner, claiming at 62 can be appealing.

Potential advantages of claiming at 62

Taking Social Security at 62 can:

• Provide income earlier

• Reduce the amount you need to withdraw from retirement accounts

• Help cover everyday retirement expenses

• Provide cash flow if you stop working before full retirement age

• Allow you to use the money earlier in retirement

• Make sense for someone with significant health or longevity concerns

For someone who does not have enough retirement savings to comfortably cover their expenses without Social Security, claiming earlier may provide needed income.

The trade-off

The primary disadvantage is a lower monthly benefit.

If your full retirement age is 67, claiming at 62 can reduce your benefit by as much as 30%. That reduction is generally permanent.

This means the decision can affect your retirement income for decades.

If you live into your 80s or 90s, the difference between claiming early and waiting can become substantial.

So the question isn't simply whether you want the money now.

The question is whether receiving a smaller benefit earlier makes sense for your overall retirement plan.

Step 4: Understand What Happens If You Wait Until 70

Waiting until age 70 means giving up several years of Social Security payments in exchange for a larger monthly benefit.

After full retirement age, delayed retirement credits increase your benefit for each month you delay, up to age 70.

Potential advantages of waiting

Waiting until 70 can:

• Provide a larger monthly Social Security benefit

• Increase guaranteed income later in retirement

• Provide greater longevity protection

• Reduce the amount you may need to rely on other assets later

• Be attractive for someone who expects to live a long time

• Create a larger income base to which future cost-of-living adjustments apply

For example, for people born in 1960 or later, the Social Security Administration indicates that waiting from full retirement age of 67 to age 70 increases the monthly benefit to 124% of the full retirement benefit.

That can make a meaningful difference in retirement income.

The trade-off

The biggest disadvantage is that you have to fund your retirement before Social Security begins.

If you retire at 62 and wait until 70, you need a plan for the eight-year period between retirement and claiming.

That income might come from:

• 401(k) accounts

• IRAs

• Taxable investments

• Pension income

• Employment income

• Cash savings

• Other sources of retirement income

Waiting can therefore make sense for someone with sufficient assets to bridge the gap.

But it may be difficult for someone who needs Social Security immediately to meet basic expenses.

Step 5: Compare the Financial Difference Between 62 and 70

Let's look at a simple example.

Suppose someone has the following estimated Social Security benefits:

Claiming Age Monthly Benefit Annual Benefit 62$2,000$24,000
Full Retirement Age$2,800$33,60070$3,500$42,000

If this person claims at 62, they would receive approximately $24,000 per year before considering taxes.

If they wait until 70, they would receive approximately $42,000 per year.

That's an $18,000 annual difference.

But there is another side to the calculation.

The person who waits until 70 gives up eight years of potential Social Security payments.

At $24,000 per year, that's approximately:

$24,000 × 8 = $192,000

This does not mean waiting until 70 is automatically worse.

It simply illustrates the trade-off.

The person claiming at 62 receives money for more years.

The person claiming at 70 receives a substantially larger monthly benefit for the rest of retirement.

The longer the person lives, the more important the higher monthly benefit may become.

This is why simply comparing the monthly checks does not tell the entire story.

Step 6: Consider Your Health and Life Expectancy

Your health is an important part of the Social Security decision.

If you have serious health concerns or a family history of shorter life expectancy, receiving benefits earlier may be more attractive.

On the other hand, if you are healthy, expect to live well into your 80s or 90s, and have enough assets to delay Social Security, waiting for a larger monthly benefit may deserve serious consideration.

This does not mean you should try to predict exactly how long you will live.

Nobody knows that.

Instead, consider the financial consequences of living a long retirement.

A retirement plan should not only answer:

“What happens if I live to 75?”

It should also consider:

“What happens if I live to 85, 90 or beyond?”

A larger guaranteed income stream later in life can become particularly valuable as other assets are gradually spent.

Step 7: Review Your Retirement Savings Before Claiming

Social Security is only one part of your retirement income.

Before deciding when to claim, review your:

• 401(k)

• Traditional IRA

• Roth IRA

• Investment accounts

• Pension

• Cash savings

• Annuities or other income sources

• Business or rental income, if applicable

Then ask:

“Can my other assets provide enough income while I delay Social Security?”

If the answer is yes, delaying may be more practical.

For example, someone with $1.5 million in retirement assets and relatively modest spending needs may have more flexibility to delay Social Security than someone with limited retirement savings.

But the decision should not be based on account balance alone.

You also need to consider taxes, investment risk, withdrawal rates, spending needs and how long the assets need to last.

Step 8: Consider Your Retirement Spending Needs

Your retirement income strategy should begin with your expenses.

Calculate what you actually expect to spend each month.

Consider:

• Housing

• Food

• Utilities

• Healthcare

• Insurance

• Transportation

• Travel

• Entertainment

• Taxes

• Debt payments

• Family support

• Unexpected expenses

Then compare those expenses with your expected retirement income.

If your monthly expenses are $7,000 and your other reliable income is only $4,500, you have a $2,500 monthly gap.

You need to determine how that gap will be funded.

Social Security may be part of the answer.

The important thing is to make the Social Security decision based on your actual retirement cash flow rather than choosing an age simply because someone else did.

Step 9: Consider Your Spouse and Family Situation

Social Security claiming can become more complicated for married couples.

One spouse may have a significantly larger benefit than the other.

One spouse may also be older, healthier or closer to retirement than the other.

That means couples may want to coordinate their decisions rather than automatically claiming at the same age.

Questions to consider include:

• Who has the larger Social Security benefit?

• When will each spouse retire?

• Does one spouse expect to live significantly longer?

• How much income does the household need?

• What happens if one spouse dies first?

• How will retirement accounts be used?

• What income will remain for the surviving spouse?

The Social Security Administration also has specific filing rules for retirement and spousal benefits, so married couples should review their individual circumstances carefully before applying.

Step 10: Understand How Working Can Affect Your Decision

Some people claim Social Security while continuing to work.

This can be an option, but it is important to understand the earnings test.

If you claim Social Security before full retirement age and continue working, your benefits may be temporarily withheld if your earnings exceed the applicable annual limit.

After you reach full retirement age, your earnings no longer reduce your Social Security benefit under the earnings test. The Social Security Administration also states that benefits can be recalculated to account for certain months in which benefits were withheld because of earnings.

This makes your work status an important part of the claiming decision.

For someone who plans to continue working, delaying Social Security may be worth considering.

For someone who is leaving the workforce and needs income immediately, claiming earlier may have a different role.

Step 11: Consider the Tax Impact

Social Security should not be evaluated in isolation from taxes.

Depending on your overall income and circumstances, some of your Social Security benefits may be subject to federal income tax.

Your withdrawals from traditional retirement accounts can also affect your taxable income.

For example, you might have a choice between:

• Taking Social Security earlier and withdrawing less from investments

• Delaying Social Security while withdrawing more from retirement accounts

• Using taxable investments first

• Using a combination of different accounts

The tax consequences can be different for each strategy.

This is one reason why a Social Security claiming decision should be considered alongside your broader retirement income plan.

Step 12: Compare Your Social Security Options

Instead of asking only whether you should claim at 62 or 70, compare several possible scenarios.

For example:

Scenario 1: Claim at 62

You receive Social Security sooner.

Your monthly benefit is lower.

You may need to withdraw less from retirement savings.

Scenario 2: Claim at Full Retirement Age

You receive your full retirement benefit under Social Security rules.

You give up fewer years of benefits than someone waiting until 70.

Scenario 3: Claim at 70

You receive a substantially larger monthly benefit.

You need other resources to fund the years before claiming.

These scenarios should then be compared against your expected spending, retirement assets, taxes, health and longevity.

This gives you a much clearer picture than simply asking which age is "best."

Step 13: Avoid These Common Social Security Mistakes

Mistake 1: Assuming everyone should claim at 62

Starting at 62 may be appropriate for some retirees, but it isn't automatically the best decision.

Mistake 2: Assuming everyone should wait until 70

Waiting can increase your monthly benefit, but you need sufficient resources to cover your expenses while you wait.

Mistake 3: Looking only at the monthly benefit

A larger monthly check does not automatically mean a better overall retirement strategy.

Look at the entire retirement income picture.

Mistake 4: Ignoring your spouse

Married couples should consider how their claiming decisions work together.

Mistake 5: Forgetting about taxes

The amount of Social Security you receive is important.

But so is the amount you actually keep after taxes.

Mistake 6: Ignoring other retirement assets

Your 401(k), IRA and other investments may provide flexibility that changes when you should claim Social Security.

Mistake 7: Making the decision based on someone else's experience

Your neighbor's health, savings, income, family situation and retirement goals may be completely different from yours.

Mistake 8: Treating Social Security as a standalone decision

Social Security can affect your retirement withdrawals, taxes and future income.

It should be considered as part of the bigger retirement plan.

Step 14: Questions to Ask Before Claiming Social Security

Before you file for Social Security, ask yourself:

1. What is my estimated benefit at age 62?

2. What will my benefit be at full retirement age?

3. What will my benefit be at age 70?

4. What is my full retirement age?

5. How much income will I need each month in retirement?

6. How much do I have in my 401(k), IRA and other investments?

7. Can my savings support me if I delay Social Security?

8. What are my health and longevity considerations?

9. Is my spouse planning to claim Social Security?

10. How could my decision affect my spouse?

11. Will I continue working?

12. What could happen to my taxes under different claiming strategies?

13. How much guaranteed income will I have later in retirement?

14. What happens to my retirement plan if I live into my 80s or 90s?

15. Which strategy best fits the retirement I actually want?

These questions can help turn Social Security from a simple age-based decision into a retirement planning decision.

Step 15: Create a Retirement Income Strategy

Once you understand your Social Security options, the next step is to determine how the different income sources work together.

For example, you might use:

Social Security + 401(k) withdrawals + IRA withdrawals + investment income + pension income

The goal is not necessarily to maximize one source of income.

The goal is to create a retirement income strategy that can support your lifestyle while managing longevity risk, investment risk and taxes.

For some retirees, claiming Social Security earlier may help reduce withdrawals from their investment portfolio.

For others, using retirement savings for several years while delaying Social Security may create a larger guaranteed income stream later.

The better strategy depends on the individual.

A Question Worth Asking Yourself

Instead of asking:

“What age should I take Social Security?”

Ask:

“What do I want my retirement income to look like at age 75, 80, 85 and beyond?”

That question can change the way you think about Social Security.

If you claim at 62, you may have more income in your early retirement years.

If you wait until 70, you may have a larger Social Security benefit during your later retirement years.

Neither approach is automatically right.

The decision should be connected to your entire retirement plan.

A Financial Planner's Perspective

One of the biggest mistakes retirees can make is treating Social Security as an isolated decision.

It isn't.

Your Social Security decision can affect:

• How much you withdraw from retirement accounts

• How long your savings may last

• Your taxable income

• Your retirement cash flow

• Your guaranteed income later in life

• Your spouse's financial situation

• Your overall retirement strategy

That's why the real question isn't simply:

“Should I take Social Security at 62 or 70?”

The better question is:

“What Social Security strategy makes sense for my retirement?”

For some people, 62 may make sense.

For others, waiting until full retirement age may be appropriate.

For others, waiting until 70 may provide valuable additional income later in life.

And for some married couples, the best answer may be different for each spouse.

There is no universal answer.

What Should You Do Before You Claim Social Security?

Before making your decision, take a step-by-step approach.

1. Review your Social Security record

Look at your earnings history and estimated benefits.

2. Determine your full retirement age

Your full retirement age depends on your birth year.

3. Compare claiming ages

Compare your estimated benefit at 62, full retirement age and 70.

4. Calculate your retirement expenses

Understand how much income you actually need.

5. Review your retirement assets

Look at your 401(k), IRA, investments and other resources.

6. Consider your health and longevity

Think about the possibility of a long retirement.

7. Review your spouse's situation

Consider how your decisions may work together.

8. Consider taxes

Evaluate how Social Security and retirement account withdrawals could affect your tax situation.

9. Consider your work plans

If you plan to continue working, understand how claiming before full retirement age may interact with the earnings test.

10. Evaluate the decision as part of your overall retirement plan

Don't make the decision based on Social Security alone.

A Question to Consider Before You File

If you had enough savings to wait, would receiving a larger Social Security benefit later provide more value to you than receiving a smaller benefit today?

There is no right answer.

For some people, the answer will be yes.

For others, the need for income today may make claiming earlier more appropriate.

The important part is understanding the trade-off before you make the decision.

Do you have questions about your retirement income strategy or when you should claim Social Security? Speak with a financial advisor today.

Frequently Asked Questions

Is it better to take Social Security at 62 or 70?

Neither age is automatically better.

Taking benefits at 62 provides income earlier but generally results in a lower monthly benefit. Waiting until 70 can provide a higher monthly benefit, but you must have other resources to cover your expenses while waiting.

What happens if I wait until 70 to claim Social Security?

If you delay retirement benefits beyond full retirement age, you can earn delayed retirement credits that increase your monthly benefit. The increases stop once you reach age 70.

Can I work and collect Social Security at 62?

Yes. However, if you claim benefits before full retirement age and continue working, your earnings may affect your benefits under the Social Security earnings test.

Does waiting until 70 guarantee that I will receive more total money?

No.

Waiting until 70 gives you a higher monthly benefit, but you receive fewer years of payments.

How the total amount compares depends on factors including how long you live and your individual circumstances.

Should married couples claim Social Security at the same age?

Not necessarily.

Each spouse may have different earnings histories, ages, health considerations and income needs.

Couples should consider coordinating their claiming decisions rather than automatically choosing the same claiming age.

Can Social Security benefits be taxed?

Yes.

Depending on your income and circumstances, part of your Social Security benefits may be subject to federal income tax.

Should I use my retirement savings to delay Social Security?

It can be a strategy worth considering.

However, you need to evaluate your retirement assets, withdrawal needs, investment portfolio, taxes, health, longevity and other circumstances before deciding.

Is 70 always the best age to claim Social Security?

No.

Waiting until 70 can provide a substantially larger monthly benefit, but it isn't automatically the best choice for everyone.

What is full retirement age?

Full retirement age is the age at which you become eligible for your full Social Security retirement benefit.

It depends on your birth year. For people born in 1960 or later, full retirement age is 67.

Does my Social Security benefit increase after age 70?

Generally, no.

Delayed retirement credits increase your benefit for delaying beyond full retirement age, but those increases stop at age 70.

Conclusion

The Social Security decision isn't simply about choosing between age 62 and age 70.

It's about understanding what each choice means for your retirement income, savings, taxes, family and long-term financial security.

Taking Social Security at 62 can provide income sooner.

Waiting until full retirement age can provide a larger benefit than claiming early.

Waiting until 70 can provide an even larger monthly benefit, but requires you to fund your retirement for longer without Social Security.

Neither decision is automatically right or wrong.

The best decision is the one that fits your retirement plan.

Before you claim, look beyond the Social Security check itself.

Look at the entire picture.

Your savings.

Your income.

Your expenses.

Your family.

Your health.

Your taxes.

And the retirement you want to live.

Social Security should be one part of a broader retirement income strategy, not a decision made in isolation.

If you're approaching Social Security age, take the time to compare your options and understand the long-term consequences before you file.

Do you have questions about your retirement income strategy or when you should claim Social Security? Speak with a financial advisor today.