Experts Confirm the Optimal Age to Apply

According to Lagradaonline , When to retire and begin collecting Social Security payments is a crucial decision that every American worker must make once they turn 62. While the economic implications are clear, the best age to retire varies depending on individual circumstances. Let’s explore the pros and cons of claiming Social Security at different ages to help you decide when it might be right for you.

Factors to Consider Before Collecting Social Security

Before making the decision to collect benefits, it’s important to consider your work history. The Social Security Administration (SSA) uses your highest 35 years of earnings to calculate your benefits. If you haven’t worked for 35 years, any missing years will be counted as zero, which can significantly lower your benefit amount.

The Four Main Ages for Retirement and Collecting Social Security

Age 62: The Earliest You Can Collect Benefits

Age 62 is the earliest age at which you can start receiving Social Security benefits. However, by choosing to collect benefits at this age, you will only receive 70% of your full retirement benefit, permanently reducing the amount you will receive each month. While this may seem like a bad deal, it can be beneficial for those facing health issues or a shorter life expectancy, as it allows you to stop working and begin collecting benefits sooner.

Age 65: A Traditional Retirement Age

At age 65, you become eligible for Medicare, making this a popular retirement age for many. If you retire at this age, you will receive 86.7% of your full Social Security benefit. For individuals with higher healthcare expenses, this may be a good time to retire since the loss in income is mitigated by subsidized healthcare coverage.

Age 67: Full Retirement Age (FRA)

For those born in 1960 or later, full retirement age is 67. If you retire at this age, you will receive 100% of your Social Security benefits, making it a favorable time for many workers. At this age, you typically have enough time left to enjoy your retirement while still being in good health.

Age 70: Maximizing Social Security Benefits

Retiring at age 70 is the best option if you want to maximize your Social Security payments. The SSA increases your monthly payments by 8% for every year you delay retirement after full retirement age, up to age 70. By waiting until 70, your monthly benefit can be up to 124% of the amount you would have received at age 67. However, this option may not be feasible for everyone, especially those who cannot afford to wait that long to start receiving payments.

Also Read – 2025 SNAP COLA Changes: How They Impact Your Benefits

The Percentage of Benefits You Will Receive at Different Ages

Here’s a breakdown of the percentage of your full retirement benefit based on when you begin collecting Social Security:

• Age 62: 70% of your full benefit
• Age 63: 75% of your full benefit
• Age 64: 80% of your full benefit
• Age 65: 86.7% of your full benefit
• Age 66: 93.3% of your full benefit
• Age 67: 100% of your full benefit (Full Retirement Age)
• Age 68: 108% of your full benefit
• Age 69: 116% of your full benefit
• Age 70: 124% of your full benefit

Final Thoughts

Choosing when to begin collecting Social Security is a personal decision that should take into account your health, financial situation, and plans for the future. While it can be tempting to retire early, the financial impact of claiming benefits at age 62 may be significant in the long run. On the other hand, waiting until age 70 can provide you with a higher monthly benefit, but may not be feasible for everyone. Ultimately, it’s important to consider all factors and choose the option that best aligns with your needs and goals.