You can begin taking Social Security retirement benefits as early as age 62, although Full Retirement Age (FRA), 67, is recommended by the Social Security Administration. Your payment will be less if you take it earlier, more if you take it at FRA, and 8% higher if you wait until age 70.
There are some very legitimate reasons to take your Social Security earlier.
- If you lose your job or retire early: Something many Federal Employees are currently facing – and you need income before you reach full retirement age, early Social Security benefits can be a great way to bridge the gap.
Federal Employees who retire before age 62 may also be eligible for the FERS Special Retirement Supplement, which issues payment until Social Security begins.
- If you have a health need, or need Social Security to make ends meet, consider taking your Social Security now.
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- Yes, there's a deduction (and it's permanent) if you start collecting before your full retirement age. That said, while that deduction can lower your monthly check as much as 30%, here's the kicker – you won't necessarily earn less money by collecting Social Security before your full retirement age.
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- Note that widows and widowers can claim as early as age 60 (or 50 if disabled); and for Disability Benefits (SSDI), there is no minimum age, but eligibility depends on a qualifying disability.
- If delaying Social Security means withdrawing from investments that are performing well or are subject to market volatility, taking benefits earlier may help preserve your portfolio.
- If you're married and your Social Security will be less than your spouse's, another way to hedge your bets is to start collecting yours now – and let your spouse's earn the 8% credit that begins at post-retirement-age.
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- Some retirees prefer to claim benefits early to fund travel, hobbies, or experiences while they are still healthy enough to enjoy them.
Did you know? The Social Security Administration has actually budgeted the same amount for you; whether you choose to take your payments earlier (and get smaller checks over more years), or you take your payments later (and get bigger checks over fewer years) the estimated amount will be the same if you live into your late 70s (Social Security’s Break-Even Age).
In theory, whether your take your Social Security benefits earlier or later – at the end of the day – you will earn the same amount; statistically speaking.
If you think you’ll beat the average life expectancy – used by Social Security (84 for men, 87 for women) – then, if you can afford it, it might pay to wait as you could possibly collect a larger payment for more than the 20-years that Social Security estimates they will pay you. If you delay collecting a payment for 25-years – for instance you wait until age 70 and live to age 95, you’ll come out ahead.
The Math
Claiming your Social Security early will lower your monthly check as much as 30%, but you won’t necessarily earn less money by collecting Social Security before your full retirement age.
If two individuals each lived to 73 (earning the same amount; let’s say $2,000 at age 67), the individual who retired early would earn $36,000 more in total Social Security Payments. However, if the same two individuals lived to be 83, the person waiting until age 67 to begin their Social Security payment will have earned $24,000 more.
Think of it this way: If your full retirement age is 67, and at that age you’d receive $2,000/month:
| Retiring Early | |
|---|---|
| Age 63 → Benefit is reduced by 25% | $1,500/month |
| Your Social Security Annual Earning | $18,000 |
| Total earnings from age 63 to age 73 | $180,000 |
| Monthly Loss | -$500 |
| Annual Loss: $500 × 12 | -$6,000 |
| 10-Year Loss: $6,000 × 10 | -$60,000 |
| By age 83 you would have earned | $360,000 |
| Retiring at Full Retirement Age | |
|---|---|
| Age 67 → You receive your full amount | $2,000/month |
| Your Social Security Annual Earning | $24,000/year |
| Total earnings from age 67 to age 73 | $144,000 |
| By age 83 you would have earned | $384,000 |
Additional Resources
Dear Penny: Should I Take Social Security Early to Pay for Medicare Part B?
Dear Penny - I will soon be 65. Working part time. I cannot afford to pay part B for Medicare. Would it be best to take Social Security now and have it come out of my check instead of waiting until age 66 and seven months? Thank you. — Social Insecurity
The First Thing Retirees Should Do With Funds From the Social Security Fairness Act
The Social Security Fairness Act, passed at the end of President Joe Biden’s term in 2024, removed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) and made it possible for many public servants to earn Social Security income on top of their other retirement plans.
