When Americans get close to retirement age, one of the biggest choices they face is deciding when to start collecting Social Security benefits.
While it is possible to begin claiming as early as age 62, doing so comes with a permanent reduction in monthly income. On the other hand, waiting until age 70 allows retirees to receive much higher payments each month.
This article explains the pros and cons of claiming Social Security early, what experts are saying about this decision, the effect of inflation and health care costs, and why delaying benefits may provide greater financial security in the long run.
When Can You Claim Social Security?
- Earliest age to claim: 62
- Full retirement age (FRA): 67 (for most Americans born after 1960)
- Maximum benefit age: 70
Claiming early at 62 means you could lose up to 30% of your benefits permanently. For example, if your FRA benefit is $2,000 per month, claiming at 62 would reduce it to about $1,400 monthly.
Social Security Payments in 2025
According to the Social Security Administration (SSA), the average monthly payout in 2025 stands at $2,006.69. However, the timing of when you claim has a major impact.
Monthly Benefits Based on Claiming Age (2025 Estimates)
| Age of Claiming | % of Full Benefit Received | Monthly Benefit (Example FRA $2,000) |
|---|---|---|
| 62 (Early) | 70% | $1,400 |
| 67 (Full) | 100% | $2,000 |
| 70 (Delayed) | 132% | $2,640 |
Why Many Retirees Claim Early
Despite the financial disadvantages, a large number of Americans claim Social Security early. Common reasons include:
- Financial hardship – Some need money immediately due to limited savings.
- Health concerns – Retirees with medical conditions may not expect to live long enough to benefit from delaying.
- Misunderstanding the system – Many believe claiming early is always better, without realizing the long-term losses.
The Long-Term Loss of Claiming Early
Choosing to claim at 62 can result in a huge financial loss over time.
- Example: A retiree eligible for $2,000 at FRA would only get $1,400 at 62.
- Over a 20-year retirement, this adds up to a staggering $144,000 in lost income.
- Rising Medicare premiums and health costs, combined with inflation, make early claiming even riskier.
Benefits of Delaying Social Security
Waiting until age 70 provides significant advantages:
- Higher monthly payments – Up to 76% more compared to claiming at 62.
- Longevity insurance – Ensures greater financial stability if you live longer than expected.
- Stronger household finances – Especially for couples, where the higher earner delaying benefits secures better survivor payments.
Experts often recommend working longer, if possible, since it boosts savings, increases retirement accounts, and reduces the total years of retirement expenses.
Inflation, Healthcare Costs, and Retirement Planning
One of the biggest threats to retirees is inflation. Even though the SSA provides Cost-of-Living Adjustments (COLAs), these often fail to match real-world expenses like housing, food, and medical care.
- Healthcare costs: Medicare premiums rise regularly.
- Living expenses: Retirees face increasing utility, food, and housing bills.
- Savings depletion: Those who claim early may rely more on personal savings, which could run out faster.
Social Security Trust Fund Concerns
The Social Security trust fund faces serious challenges. According to projections, the fund may be depleted by 2033, leading to over 20% benefit cuts if Congress does not act.
Experts like Scott Galloway and Jean Chatzky stress the importance of reforms such as means testing or cost reductions. Until then, individuals must plan carefully and consider delaying benefits to maximize income.
Expert Opinions
- Scott Galloway (NYU professor): Believes Social Security should focus on preventing senior poverty, not supporting wealthy retirees.
- Jean Chatzky (finance expert): Warns that claiming too early leads to long-term risk and urges Americans to develop strategic retirement plans.
- Dave Ramsey (financial author): Stresses the importance of mixing Social Security with savings, 401(k)s, and investments to secure retirement.
Steps to Make a Smart Social Security Decision
- Use SSA calculators – Estimate your benefits at different ages.
- Consider spousal benefits – Married couples can coordinate claiming strategies.
- Look at your health and life expectancy – This can help decide whether early or delayed claiming is best.
- Continue saving consistently – Automatic contributions to retirement accounts can fill gaps.
- Seek expert advice – Financial planners can create a customized retirement plan.
The choice of when to claim Social Security is one of the most important financial decisions retirees will ever make. While claiming early at 62 provides quick access to money, it results in permanent reductions in monthly benefits and may leave retirees struggling later in life.
By waiting until age 70, Americans can secure higher monthly payments, better household stability, and stronger long-term financial security.
In a world where inflation, healthcare costs, and retirement risks continue to grow, delaying Social Security could mean the difference between comfort and struggle in old age.
FAQs
What happens if I claim Social Security at 62?
You will receive about 30% less per month compared to waiting until your full retirement age.
How much more will I get if I wait until 70?
Delaying until age 70 can increase your monthly benefit by up to 76% compared to claiming at 62.
Will Social Security run out in the future?
The trust fund may be depleted by 2033, but benefits will not disappear. Without reform, they could be cut by 20% or more.