The Right Age to Take Social Security Retirement Benefits

As you get older, you start thinking more about retirement distributions than contributions. That leads to near-retirees wondering what the right age is to start collecting Social Security benefits. Some take the benefits as soon as they become eligible, but that isn’t always the right option. You can start collecting Social Security benefits any time between ages 62 and 70. Let’s take a look at how Social Security works, and what you need to know when deciding the right age for your retirement.

A financial advisor can help you optimize a plan for your retirement needs.

How Social Security Works

Social Security is a source of income that’s meant to supplement your retirement income and ease financial concerns as you get older. It’s essentially a support system for America’s elderly, enabled by the 1935 Social Security Act. Most beneficiaries are retirees and their families, though disabled individuals and survivors of workers who have died are also eligible to collect Social Security benefits.

Workers make Social Security contributions each month, which appear on your paycheck as Federal Insurance Contributions Act (FICA) taxes. Upon retirement, you can begin to receive Social Security payments, which will continue throughout the rest of your life. How much you receive each month, however, depends on when you elect to begin taking benefits and whether you’ve reached full retirement age (FRA) at that point.

Full retirement age is the age at which you become eligible to start receiving full retirement benefits. It was 65 for many years, but the Social Security Administration amended that rule in 1983 because of increases in average life expectancy.

Now, depending on the year you were born, you reach full retirement age sometime between 66 and 67. Anyone born after 1960 reaches full retirement at 67. 

The Social Security Administration table below breaks down full retirement benefits for different age groups.

Social Security Administration Retirement Benefits

What Is the Right Age to Take Social Security?

The right age to take Social Security depends on individual circumstances, including financial needs, health and long-term goals. While it’s possible to claim benefits as early as age 62, doing so results in a permanent reduction in benefits of about 25-30% compared to if you were to wait until full retirement age. Claiming at FRA ensures full benefits, while delaying beyond FRA increases monthly payments by 8% per year until age 70, when benefits reach their maximum.

Those in good health with a longer life expectancy may benefit from waiting to claim benefits in order to maximize their monthly income. Meanwhile, individuals who need financial support earlier or who have health concerns may opt for an earlier start despite the reduction. Additionally, working while collecting benefits before FRA can lead to temporary reductions, and spousal or survivor benefits may impact the decision as well. 

Ultimately, the best age to claim Social Security depends on a balance of immediate financial needs, expected longevity and retirement plans. Be sure you weigh the decision carefully, and don’t hesitate to find a financial advisor to talk to if need be. The age you choose to start taking Social Security will affect the monthly amount you receive for the rest of your life.

What to Consider When Deciding the Right Age for Social Security Benefits

You’ll receive reduced monthly benefits permanently if you start taking them before you reach full retirement age. And the reductions aren’t small. The below breakdown summarizes how much you can lose (or gain) depending on when you get your retirement benefits:

• Claiming early: Benefits are reduced by up to 30% if you opt to start receiving benefits just five years early.
• Claiming at FRA: If you wait until you reach full retirement age, you’ll receive 100% of your benefits.
• Claiming past FRA: You can also elect to postpone benefits beyond full retirement age, up until you are 70. The monthly amount you will receive in the future increases each month you wait to start receiving benefits.If you wait until the last possible month, your check will be between 124% and 132% of the full retirement benefit, depending on your year of birth.

For a fuller comparison, this table from the Social Security Administration shows how much you could get if you retire at age 62 based on your birth year.

Social Security Administration Early Retirement at Age 62

The takeaway? It’s almost always best to delay Social Security benefits for as long as you can. If you plan to work in retirement, you’ll definitely want to delay. You’ll face a penalty if you continue to work after you claim early retirement benefits and earn more than the yearly earnings limit, which for the 2026 tax year is $24,480. This means that the Social Security Administration will deduct $1 from benefits for every $2 that you earn over $24,480. For the 2025 tax year, the yearly earnings limit was $23,400.

And, if you reach full retirement age in 2026, the Social Security Administration’s earnings limit is $65,160 (up from $62,160 in 2025). This means that you will lose $1 in benefits for every $3 you make over the limit. But once you hit full retirement age, there is no more limit on your earnings, so you will be able to continue working with full benefits.

All of that said, it only makes sense to wait until you’re 70 to start receiving Social Security benefits if you expect to live until you’re at least 80. To wait that long, you’ll also need to have income or sufficient savings to live off of. If your health is poor or you don’t have the means to fund yourself, then 62 might be the right age for you to start taking benefits. Just be sure you budget for the reduced amount of benefits that you’ll receive.

Finding Your Break-Even Age

Luckily, there is a way to determine the exact right age for you to start Social Security benefits. Your break-even age occurs when the value of your highest possible benefit (achieved by waiting until age 70) exceeds the value of your lower benefit (taken in early retirement). This calculates the financial return you’ll receive by waiting. If you think you’ll live well beyond that age, it may be worth the wait.

Keep in mind that those who start collecting benefits later will collect less and forgo potential interest earnings. But if you die before you hit the break-even point, the reduced benefits won’t matter. It’s essentially a game of hedging your bets. You want to take benefits when you can, but not before you need to.

Social Security and Taxes on Benefits

Social Security benefits are not always tax-free at the federal level. Whether benefits are taxable depends on a measure called provisional income, which combines adjusted gross income, nontaxable interest and half of annual Social Security benefits. Once provisional income crosses certain thresholds, a portion of benefits is included in taxable income.

Up to 50% of benefits may be taxable for individuals whose provisional income exceeds the first threshold, and up to 85% may be taxable once income exceeds the higher threshold. These percentages do not represent separate tax rates. Instead, they determine how much of the benefit is counted as ordinary income and taxed at the filer’s marginal rate.

The age at which benefits begin can affect how taxation plays out over time. Claiming benefits earlier spreads smaller benefit payments across more years, while delaying results in larger monthly payments later. When combined with retirement account withdrawals, pensions or continued earnings, larger benefits can increase the share of income subject to taxation in later retirement years.

State tax treatment adds another layer. Some states fully exempt Social Security benefits, others tax them in full and some apply income-based exclusions. Because federal and state rules interact differently depending on income sources and location, taxes can materially affect the net value of benefits over retirement.

Bottom Line

When it comes to the right age to take Social Security benefits, there’s no one-size-fits-all answer. As a rule, it’s best to delay if you can. If you’re in good health and don’t need supplemental income, wait until age 70. But waiting gets a lot more complicated when you factor in your financial needs and health.

Tips for Ensuring a Comfortable Retirement

• If you want to build a retirement plan, consider working with a financial advisor who can help you reach your retirement goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Save, save, save. To be able to put off taking Social Security benefits until you’re 70, you’ll need to have enough stashed away to live off of until then. Our retirement calculator can help you figure out how much you’ll need to save to retire comfortably. Start saving early, and take advantage of employer matches. With our 401(k) calculator, you can see how much your 401(k) will be worth when you retire.
• Think hard about where you want to retire. Not all states are equally tax-friendly to retirees. Use our retirement tax-friendliness tool to see how tax-friendly your home state is, and whether Social Security benefits are taxable at the state level there.

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