When Should You Take Social Security? Claiming at 62 vs. 67 vs. 70
Updated: 10 hours ago
It might be the single most important retirement decision you'll ever make, and it's permanent. Get it right, and you can boost your income for the rest of your life. Get it wrong, and you could leave a whole lot of money on the table. If you're anywhere between 50 and 67, this is the decision to think through now, not the month you retire.
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Here's the first thing to know: the best time to claim depends on your situation, not what a famous guru says. Suze Orman tells people to wait as long as possible, ideally to 70. Dave Ramsey says grab it at 62 and invest the difference. The truth? Neither of them knows your finances, your health, your spouse's situation, or your goals. That's exactly why this isn't a decision to make in isolation or off a rule of thumb.
Social Security Ages: 62, 67, or 70
You can claim as early as 62 or delay all the way to 70. If you were born in 1960 or later, your Full Retirement Age (FRA) is 67. That's where you collect 100% of your calculated benefit.
Claim at 62: You lock in roughly 70% of your benefit, permanently.
Wait to 70: Your benefit grows to about 124%.
Every year you delay past FRA: Your benefit jumps a guaranteed 8%. You won't find that return anywhere else.
And here's the part most people miss: every cost-of-living raise down the road is a percentage. It stacks on top of your base amount, so a bigger starting check grows by more dollars every single year. Over a 20 to 25 year retirement, the gap between claiming at 62 versus 67 or 70 can easily reach $200,000 or more in lifetime benefits.
Monthly Payouts & Break-Even Age
Say your full benefit at 67 is $2,000/month. Claim at 62 instead, and you'd lock in about $1,400, a $600 gap right out of the gate.
Now add a 3% raise each year and watch that gap stretch:
After 5 years: the early check is around $1,625; the higher check is around $2,320, a gap near $700/month.
After 10 years: the early check is around $1,880; the higher check is around $2,690, a gap of roughly $800/month, and widening.
So does it matter in the long run? It depends on how long you live. The general break-even point, where waiting starts to pay off, lands somewhere around age 78 to your early 80s. Live past that, and delaying tends to win. Don't, and claiming early often comes out ahead. (Curious about your odds? LivingTo100.com will estimate your chances of reaching 85 or 90.)
Health & Lifestyle Factors
Plenty of people would rather start Social Security than pull larger withdrawals from a portfolio they spent decades building. That's completely valid. If waiting looks better on paper but means you'll only pull the bare minimum and never actually enjoy your money, claiming early might be the right move for you.
Your health and family history matter here, too. Great shape with parents who lived into their 90s? Delaying looks attractive. Serious health concerns? The math shifts.
Survivor Benefits for Couples
For couples, this isn't just about you. It's about your household. When one spouse passes away, the survivor keeps the higher of the two benefits. So if the higher earner delays to 67 or 70 and builds up that bigger monthly check, it goes on to protect the surviving spouse for the rest of their life. That's a powerful reason for the higher earner to wait.
Early Living vs. Delayed Growth
For most people, starting at 62 leaves a lot on the table. But waiting all the way to 70, especially if you retired at 65, can be tough to stomach. Those early years are when you're still healthy enough to travel and enjoy life, and draining your portfolio for five extra years can genuinely cramp the lifestyle you worked so hard for.
The good news: it's not all-or-nothing. Even nudging from 62 to 64 or 65 makes a real difference in your monthly check. You don't have to hold out to 70 to come out ahead.
Key Takeaways
Claiming Social Security is permanent, personal, and worth getting right. Run the numbers, weigh your health, protect your spouse, and be honest about how you actually want to live in retirement. The goal isn't to delay as long as humanly possible. It's to make the right call for your situation.
Start at ssa.gov: create your My Social Security account, review your estimated benefit at every age, and double-check your earnings history for errors that could shrink your check.
Next Steps for Your Retirement
Ready to take the next step? At Capital Wealth Group, we model Social Security alongside your portfolio, your taxes, and your other income sources, so the right answer gets a whole lot clearer.
Visit CapitalWealthGroupSC.com to schedule a free, no-obligation retirement review. Let's make sure you're on the right track for the retirement you want.
Full Podcast Episode Script
When Should You Take Social Security? Claiming at 62 vs. 67 vs. 70
So here's another question I get asked all the time. George, when should I start taking Social Security? And honestly, it might be the most important retirement decision you'll ever make. Because here's the thing. It's permanent. Get it right, and it can boost your income for the rest of your life. Get it wrong, and you could be leaving a whole lot of money on the table.
Welcome to Your Retirement Guide. I'm George Jameson, CFP, RICP. and founder of Capital Wealth Group, a fee -only firm in Columbia, South Carolina. We offer ongoing retirement planning and investment management, plus one -time financial plans for do -it -yourselfers. Thanks for joining me. Now, before we go any further, let me be crystal clear about something. The best time to start Social Security depends on your situation, not what some so -called expert says. For example, Susie Orman says, wait as long as possible, at least to age 67, and ideally to age 70. And Dave Ramsey advises people to claim Social Security at age 62 rather than waiting. He argues that you should take the money as fast as you can and invest it. And here's the truth. Neither of them knows your situation. They don't know your finances. They don't know your health, your spouse's situation, or your goals. And that's why in our office, We actually run the scenarios through financial planning software. Look at the full picture and weigh the pros and cons before making a final call. It's that important.
Now, here's something I see all the time. A lot of folks would much rather start Social Security than pull larger withdrawals from their investments. And I get it. Psychologically, it makes complete sense. You spent decades building that portfolio. The last thing you want is to watch it drop right after you retire. And let's be honest, none of us knows how long we live. And I'm sure you've known someone who retired at age 65, decided to wait until 67 or later, only to pass away before they ever collected a dime. So a lot of people start early just to protect their savings. And then some folks, especially those who haven't saved much, may not really have a choice. and have to take it as soon as they retire. I understand that feeling. I do. But it doesn't always make sense mathematically. And that is exactly what we're going to talk through today.
So let's start with the basics. You can claim as early as 62 or delay all the way to 70. If you're born in 1960 or later, your full retirement age, your FRA is 67. That's where you collect 100 % of your calculated benefit. Start at 62, you will get only 70 % of that amount, permanently. Wait until 70, your benefit grows to roughly 124%. Every single year you delay past your full retirement age, your benefit jumps 8%. That's a guaranteed 8%. You will not find that anywhere else. And here's what most people never think about. Every cost of living raise you get down the road, is a percentage. So it stacks on top of your base amount, which means the bigger check grows by more dollars every single year. Over a 20 or 25 year retirement, that difference between starting at 62 versus 67 or 70 can easily be $200 ,000 or more in lifetime benefits.
Let me put some real numbers on it. Say your full benefit at 67 is $2 ,000 a month. Start at 62 instead and you lock in about $1 ,400. A $600 gap per month right out the gate. Now let's add a 3 % raise each year and watch what happens. Fast forward five years. That $1 ,400 check has climbed to about $1 ,625. But the $2 ,000 check is up to about $2 ,320. That gap didn't stay at $600. It widened to nearly $700 per month. Go out 10 years, the early check is around $1 ,880. The higher one is about $2 ,690. So that gap is now roughly $800 a month, and it just keeps stretching every year.
So the natural question is, will it actually matter in the long run? Well, it depends on how long you live. The general break -even point, the age where waiting starts to pay off, is somewhere around 78 to your early 80s. Live past that, and delaying tends to win. If you don't, taking it early often comes out ahead. Want to check your odds? Head over to LivingTo100 .com and see your chances of reaching age 85 or 90. But here's the honest truth, that's not always about the math. I've had people tell me, if I don't break even until age 80, I'd rather take it early. And if I'm lucky enough to live past 90, well great. But I want to enjoy life now while I can. That extra income gives me permission to spend it. And you know what? That's completely valid. If waiting makes sense on paper, but I know you'll only pull the bare minimum from your portfolio and never enjoy it, then taking it early might be the right move for you. Running the numbers matters, but this is a personal decision too. That's also why your health and family history matters so much here. If you're in great shape and your parents lived into their 90s, delaying looks awfully attractive. If you've got health concerns, the math shifts.
Now for married couples, this isn't just about you. It's about your household and the survivor benefit. That's the piece people often overlook. Here's how it works when one spouse passes away the survivor keeps the higher of the two benefits so if the higher earner delays to 67 or 70 and Builds up that bigger monthly check that larger check goes on to protect the surviving spouse for the rest of their life That is a powerful reason for the higher earner to wait
Now don't hear me wrong starting at 62 isn't the wrong answer for a lot of people is exactly the right one. If you're in poor health, if you need the income and don't have other options, or if your retirement is already very well funded, taking it early can absolutely make sense. The goal isn't to delay as long as humanly possible. The goal is to make the right call for your situation.
Now I would like to share what I actually observe. And this is just my observation, not me telling you what to do. For most people starting at 62 leaves a lot of money on the table I mean a lot but on the flip side waiting all the way to age 70 Especially if you've retired at 65 or earlier can be tough to stomach Those are the years you're still in good health still able to travel still able to go out and enjoy life And drain your portfolio for five extra years while you wait that can genuinely hinder your lifestyle you work so hard for. So here's the honest picture. I do have clients who wait until 70, but most don't. And if you're going to pull the trigger at 62, you really need to be sure it's the right move, because again, it's permanent. But here's the good news. It's not all or nothing. Even waiting just two or three years, going from 62 to 64 or 65 makes a real difference in your monthly check. You don't have to hold out all the way to 70 to come out ahead.
So where do you start? Go to ssa .gov. Create your My Social Security account. You'll see your actual earnings records and your estimated benefit at every age. And double check your earnings history. Errors happen, and they directly affect your check. From there, I'd strongly encourage you to work with a financial planner who uses professional financial planning software and can help you make the right decision. When you model social security alongside your portfolio, your taxes, and your other income sources, the right answer gets a whole lot clearer. This just isn't a decision you want to make in isolation.
And that's it for today. Thank you for joining me on your retirement guide. I'm George Jameson with Capital Wealth Group. And if you found this helpful, do me a favor and subscribe and share your thoughts down in the comments. And if you'd like a free retirement review, come visit us at CapitalWealthGroupSC .com. to schedule a no obligation call. Have a great day.
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