At what age should I start receiving my Social Security retirement benefits?
The answer is that there is no “best age” that applies to everyone and, ultimately, it is your decision. The most important thing is to make an informed decision.
The decision about when to apply for benefits should be based on your and your family's financial circumstances and depends on several factors to consider, such as: your current and future financial needs; your health and the longevity of your family. Also, you should consider whether you plan to work in retirement and whether you have other sources of retirement income. You should also study your expected future obligations and, of course, the amount of your future Social Security benefits.
It is important that you carefully evaluate all factors before making such an important decision about when you should start receiving your Social Security benefits. This decision affects the monthly benefit you will receive for the rest of your life, and may affect benefit protection for your survivors.
Social Security calculates your base benefit (the amount you would receive at full retirement age) based on your lifetime earnings.
However, the actual amount of monthly benefits you are entitled to depends on when you start receiving benefits. Your benefit will be greater the longer you take to start it. Let's say you turn 62 in 2023, your full retirement age is 67, and your monthly benefit starting at your full retirement age is $1,000. If you start receiving benefits at age 62, we will reduce your monthly benefit by 30% to $700 to account for the additional time you will receive benefits. This reduction is usually permanent.
If you choose to delay receiving your benefits until age 70, your monthly benefit will increase to $1,240. This increase is due to the delayed retirement credits you earn for your decision to delay receiving benefits until after your full retirement age. In this example, the benefit at age 70 is about 77% more than the benefit you would receive each month if you start receiving benefits at age 62—a difference of $540 each month.
Retirement May Last Longer Than You Think
When thinking about your retirement, be sure to plan for the long term. Most of us will live many years longer than the "average" retiree, and most women will live longer than men. It is estimated that 1 in 3 people aged 65 today will live to at least 90 years and 1 in 7 people will live to at least 95 years. Additionally, you'll want to choose your retirement age based on your circumstances to ensure you have enough Social Security income to supplement your other sources of retirement income.
Married couples have to plan for two people
Your spouse may be entitled to benefits under your Social Security number, and it is important to consider Social Security protections for surviving spouses. Generally, 65-year-old married couples today have a 50-50 chance that one member of the couple will live past 90 years. If you have the highest income and delay receiving your retirement benefits, this will result in a higher benefit for the rest of your life. If you die first, this will result in a higher benefit and protect your surviving spouse.