- The age you begin taking Social Security may permanently impact how much money you'll receive every month.
- Taking benefits starting at age 62 may reduce them by as much as 30%. Inversely, delaying Social Security until age 70 will maximize them.
- In addition to payment size, consider a variety of other important factors such as your financial needs, health, tax implications, etc.
Since the Social Security Act of 1935, eligible Americans have been entitled to receive benefits upon reaching full retirement age (FRA). However, taking Social Security benefits early or waiting even just a few years after FRA could affect how much money you'll be paid.
Here's what you need to know about filing for Social Security at age 62 vs 67 vs 70 and the factors to consider.
How Your Claiming Age Affects Your Benefit
It may be helpful to think of retirement benefits beginning at one of three potential milestones: Full Social Security retirement age, early, and delayed.
Claiming at Age 67 (FRA)
FRA is when you're entitled to 100% of your Social Security retirement benefits. This will be determined by the year that you were born:
- Birth Year / FRA
- 1943-1954 / age 66
- 1955-1959 / age 66 + 2 months for every year after 1954 until 1960
- 1960 and later / age 67
Claiming at Age 62 (Early)
If you'd like to begin receiving Social Security before age 67, then you're entitled to begin claiming it as early as age 62. However, the trade-off is that your benefits will be permanently reduced by as much as 30% from what you would have received at FRA.
For example, if you were supposed to receive a monthly benefit of $2,000 at FRA, then you'd only receive $1,400 per month starting at age 62.
Please note that for each month you delay filing early for Social Security (approaching age 67), the lower the reduction in benefits. For instance, waiting until age 64 only reduces your benefits by 20%.[1]
Claiming at Age 70
You don't necessarily have to begin claiming your Social Security benefits right away at age 67. In fact, delaying by a few years can increase the benefit even more.
For each year after FRA you wait, your new monthly benefit will grow by 8%. This increase reaches its upper limit by age 70.[2]
Factors To Consider When Choosing Your Claiming Age
Determining whether to begin receiving payments early or maximize your Social Security benefits is an important decision. Here's what you'll need to consider.
Life Expectancy and Health
No one likes to think about their own mortality, but life expectancy does play a role in this decision. Since Social Security benefits will last your lifetime, it’s important to at least consider your health and potential longevity.
If you have any pre-existing medical conditions or are concerned about your future well-being, then claiming your benefits early might be a good choice. Likewise, if you're in relatively good shape and don't foresee health as being a concern, then perhaps you can delay taking them.
Continued Employment
It's perfectly okay to both work and claim Social Security benefits. However, doing so may have some impact on how much you'll receive.
While you're under full retirement age, you'll make $1 less in benefits for every $2 you earn above the annual limit (24,480 for 2026).
This amount will transition to $1 less in benefits for every $3 you earn above the annual limit in the months before you reach full retirement age.
Once you've reached full retirement age, there will no longer be any reduction to your benefits for working.[3]
Spousal Benefits
Social Security allows married couples to receive the higher of their personal benefit or 50% of their partner's benefits (but not both). Therefore, waiting as long as possible to claim your maximum benefits may be beneficial for both parties, especially if one wasn't employed and may not have earned any benefits.
This may be particularly important in the case of widows who outlive their significant others for an extended period of time. Because they might depend on their spousal benefits for potentially years or even decades, it would be ideal if this amount were maximized.
Other Income Sources
If you have other income sources such as a 401(k), IRA, or pension, then you may not need the money from Social Security right away. This may put you in a good position to delay your claim and allow the benefits to increase.
Note that taking withdrawals from your tax-advantaged retirement accounts or receiving a pension, interest, and dividends will not result in a reduction of your benefits before age 67. SSA excludes these sources if you plan to claim your benefits early.[4]
Tax Implications
Currently, 85% of your Social Security benefits are considered taxable if you file an:
- Individual return and report a combined income over $34,000
- Joint return and report a combined income over $44,000
"Combined income" is defined as your adjusted gross income, tax-exempt interest income, and one-half of your annual Social Security benefits.[5]
Medicare
In the U.S., all citizens or legal permanent residents who are 65 years or older are eligible for Medicare. While the premiums are preset, they can increase by what's known as an IRMAA (Income-Related Monthly Adjustment Amount), resulting in additional expense for Medicare Part B outpatient care and Medicare Part D prescription drug coverage.
An IRMAA will be triggered based on the modified adjusted gross income (MAGI) you report on your federal income tax return. As of 2026, those limits are:[6]
- Individual filers: $109,000 or greater
- Joint filers: $218,000 or greater
Note that Social Security income will count towards your MAGI and may result in an IRMAA.
Social Security Benefit Break-Even Analysis
To assist in your decision about when to take Social Security, it may be helpful to perform a break-even analysis. This can be done as follows:
- Log in to your Social Security account. Go to the official SSA website and use the Social Security Retirement Calculator. This will give you the most accurate information about your status as well as your estimated benefits at age 62, FRA, and age 70.
- Calculate the cumulative benefits. For each of the three options, begin adding up the total amount of compensation you'd receive each year. For example, if you plan to receive $24,000 at FRA, then this amount would be $48,000 at age 68, $72,000 at age 69, and so on. Continue this process until age 100.
- Look for cross-over points. Look for ages where one option becomes more advantageous (equal to or greater) than the other. These will be your break-even points.
- Draw your conclusions. Based on the data you just created, determine which path would be most advantageous to your situation. Don't forget to also consider other qualitative factors we've covered, such as health, needs, spousal benefits, etc.
Frequently Asked Questions
Are Social Security benefits structured so that I'll delay taking them?
No, Social Security's changing benefit amounts are not designed to punish or reward. Rather, SSA’s actuaries try to set benefits so that if you live out your life expectancy precisely, you’ll receive approximately the same amount from the program whether you start receiving your benefits at age 62, age 70, or anywhere in between.
Can Social Security benefits be direct deposited into my bank account?
Yes. PNC has a feature called PNC Direct Deposit that allows clients the ability to easily set up direct deposits, including Social Security payments. This can be done directly from the PNC Mobile app.
Will my Social Security benefits ever change?
Yes. To keep up with inflation, SSA regularly factors a cost-of-living adjustment (COLA), resulting in modestly increased benefits. COLA will vary year to year based on a variety of economic factors.
Will I continue to receive benefits if my spouse passes away?
Social Security benefits are paid to individuals. If both spouses are eligible, they will each receive the higher of their personal benefit or 50% of their spouse's benefits. When one spouse passes away, the payment to that spouse will discontinue.
Final Thoughts
The age at which you begin claiming Social Security benefits will have an impact on how much you'll receive for the rest of your life. There are several reasons why it might make sense to file sooner or later than FRA. Consider your situation and consult a financial professional if additional guidance is needed.
