By Jonathan Mills in Personal Finance — Jun 5, 2025

Delayed Benefits: The Million-Dollar Social Security Decision

Wondering when to claim Social Security? This guide helps you navigate the complex factors that determine your optimal claiming age. Learn how timing impacts your benefits and discover strategies to maximize your retirement income.

Figuring out when to tap into your Social Security benefits? It’s one of the biggest financial chess moves you'll make for retirement. That siren song of an earlier check is tempting, no doubt. But then there's the promise of a heftier payment if you hold your ground. Let's be clear: there's no universal "magic number" that fits everyone.

You determine the best time to start your Social Security. Your decision rests on a mix of your health, your bank account, your family's needs, and what you see on the horizon. Getting a firm grip on the rules and how they play out for your specific game is non-negotiable.

Insights

Your "best" Social Security claiming age is deeply personal; it’s not a one-size-fits-all answer.
Full Retirement Age (FRA) is your baseline for 100% benefits, but claiming earlier means a smaller check, while waiting past FRA (up to 70) boosts it.
Your health outlook and immediate cash flow needs are major drivers in this decision.
For couples, coordinating benefits, especially by having the higher earner delay, can significantly lift total lifetime and survivor payouts.
Delaying benefits provides a guaranteed, inflation-adjusted increase to your monthly income, a rare find in the investment world.

The Ground Rules: FRA and Your Benefit Number (PIA)

Before you can strategize, you need to understand two bedrock Social Security terms: Full Retirement Age (FRA) and Primary Insurance Amount (PIA).

Think of these as the fundamental coordinates on your retirement map.

What is Your Full Retirement Age (FRA)?

Your Full Retirement Age is when you’re eligible for 100% of your Social Security retirement benefit – your Primary Insurance Amount (PIA). This age isn't fixed; it slides based on your birth year.

If you were born between 1943 and 1954, your FRA is 66. For those born from 1955 to 1959, FRA inches up by two months each year. Born in 1960 or later? Your FRA is 67.

For instance:

Born 1955: FRA is 66 and 2 months
Born 1957: FRA is 66 and 6 months
Born 1959: FRA is 66 and 10 months

Knowing your specific FRA is step one. You can confirm this directly on the Social Security Administration's website, SSA.gov.

What is Your Primary Insurance Amount (PIA)?

Your Primary Insurance Amount (PIA) is the monthly sum you’d get if you start benefits exactly at your FRA. This number is unique to you.

The SSA figures out your PIA using your lifetime earnings. They look at your average indexed monthly earnings (AIME) from your 35 highest-earning years, after adjusting those earnings for wage inflation.

For someone retiring at age 62 in 2025, for example, their past earnings would be indexed to the national average wage index for 2023, which was $66,621.80. If you have fewer than 35 years of earnings, they average in zeros for the missing years, which, as you can guess, pulls your PIA down.

The PIA formula itself involves "bend points" that change annually. For 2025, the first $1,226 of your AIME is multiplied by 90%; the amount between $1,226 and $7,391 is multiplied by 32%; and any AIME over $7,391 is multiplied by 15%. These pieces are added together to get your PIA.

"The more you learn, the more you earn."

Warren Buffett Investor and Business Magnate

This isn't just a catchy phrase. When it comes to Social Security, understanding the mechanics directly impacts your financial outcome.

Your Claiming Options: The Early Bird, The Patient Planner, The Strategic Delayer

You’ve got a window to start your Social Security retirement benefits, typically stretching from age 62 to age 70. Each path has different financial terrain.

Option 1: Claiming Early (Age 62 to FRA-1 Month)

The absolute earliest you can grab Social Security retirement benefits is age 62. But, starting benefits before your FRA means a permanent haircut on your monthly payment.

The Price of Early Access: Reduced Monthly Benefits

For every month you claim before your FRA, your benefit shrinks by a set percentage. The further out from FRA you are, the bigger the reduction.

If your FRA is 67, here’s a rough sketch of the hit:

Claiming at age 62: Roughly a 30% reduction (you get 70% of your PIA).
Claiming at age 63: Roughly a 25% reduction (you get 75%).
Claiming at age 64: Roughly a 20% reduction (you get 80%).
Claiming at age 65: Roughly a 13.3% reduction (you get 86.7%).
Claiming at age 66: Roughly a 6.7% reduction (you get 93.3%).

These reductions stick. Your monthly check will be smaller, but you'll collect benefits for more years.

If you decide to claim benefits before your FRA and keep working, watch out for the Social Security earnings test. If your earnings blast past certain annual limits, some of your benefits might be temporarily held back.

For 2025, if you are under FRA for the entire year, $1 in benefits will be docked for every $2 you earn above the annual limit of $23,400.

In the year you hit your FRA, a different limit applies. For 2025, this limit is $62,160. Here, $1 in benefits is docked for every $3 earned above this limit, but only earnings before the month you reach FRA count.

Those withheld benefits aren't gone for good. Once you reach FRA, the SSA refigures your benefit amount, giving you credit for the months benefits were withheld. This bumps up your monthly payment a bit moving forward. The earnings test limits change, so always check SSA.gov for the latest numbers.

Option 2: Claiming at Full Retirement Age (FRA)

Wait until your Full Retirement Age, and you'll receive 100% of your Primary Insurance Amount. No early claiming penalties, no delayed gratification bonuses (unless you keep waiting).

For many, this is the straightforward play – getting the full benefit they’ve earned.

Option 3: Delaying Benefits (FRA+1 Month to Age 70)

If your finances allow you to wait, delaying Social Security past your FRA can seriously inflate your monthly payment. This magic happens thanks to Delayed Retirement Credits (DRCs).

The Power of Patience: Delayed Retirement Credits (DRCs)

For each month you hold off claiming past your FRA, your benefit grows by a specific percentage. If you were born in 1943 or later, this credit is usually 2/3 of 1% per month. That adds up to a hefty 8% per year.

Let’s say your FRA is 67. If you delay claiming:

To age 68: Your benefit would be 108% of your PIA.
To age 69: Your benefit would be 116% of your PIA.
To age 70: Your benefit would be 124% of your PIA.

If your FRA was 66, pushing your claim to age 70 could mean a benefit that's 132% of your PIA – a 32% permanent raise on your base amount. The maximum possible Social Security benefit for someone claiming at age 70 in 2025 is $5,108 per month, or $61,296 per year. That's a serious anchor for retirement income.

The Age 70 Finish Line

These Delayed Retirement Credits pile up until age 70. There’s no extra financial reward for delaying your claim beyond age 70. So, if delaying is your strategy, age 70 is generally your target to start the cash flow.

The Real-World Factors: What Actually Moves the Needle?

Pinpointing when to claim Social Security means you must weigh several personal variables. There's no single "correct" answer, only the answer that aligns with your life's blueprint.

Factor 1: Your Longevity Outlook

This is probably the biggest, yet most unknowable, piece of the puzzle. If you expect a long life (think family history, your health, lifestyle choices), delaying benefits for a bigger monthly check often means more total lifetime benefits.

On the flip side, if you have serious health issues or a family history of shorter lives, claiming earlier might be the logical move to ensure you get benefits for a decent stretch. It’s a tug-of-war between a higher monthly amount and the number of years you’re likely to get it.

Factor 2: Your Financial Firepower and Needs

Your immediate and future financial needs are front and center. If you need the income to cover the basics as soon as you hang up your work boots, claiming earlier might be unavoidable, even with a smaller monthly check.

"You must gain control over your money, or the lack of it will forever control you."

Dave Ramsey Financial Author and Advisor

Look at your other income streams: pensions, 401(k)s, IRAs, savings, investments. If these can comfortably cover an income gap, you might have the financial runway to delay Social Security and lock in a larger future benefit.

Factor 3: Marital Status – A Strategic Multiplier for Couples

For married folks, the Social Security claiming decision isn't just personal; it's a team sport. Smart coordination can massively affect the total benefits the couple gets over their lifetimes and the benefit for the surviving spouse.

Coordinating Plays for Married Couples

Often, the winning strategy involves the higher-earning spouse delaying their benefits as long as possible (up to age 70). This maximizes their individual benefit, which then maximizes the potential survivor benefit for the spouse left behind.

The lower-earning spouse might claim their own benefit earlier, or claim a spousal benefit, depending on what’s better and their own FRA.

Understanding Spousal Benefits

Even if one spouse has a spotty work history or none at all, they might qualify for a spousal benefit based on their partner's record. The spousal benefit can be up to 50% of the higher-earning spouse's PIA, as long as the spouse claiming the spousal benefit has reached their own FRA.

If the spouse claims this benefit before their FRA, the amount is permanently dinged. You generally need to be married for at least one year to qualify for spousal benefits on a current spouse's record.

Maximizing Survivor Benefits: Protecting Your Partner

When one spouse dies, the survivor is generally eligible for a survivor benefit. This can be up to 100% of what the deceased spouse was getting or was entitled to get at their FRA (or their actual boosted benefit if they delayed past FRA).

This is why the higher earner delaying their claim is so potent: it builds a larger potential survivor benefit, offering more financial armor for the remaining partner. A widow or widower can usually start survivor benefits as early as age 60 (or 50 if disabled), but the benefit amount will be reduced if claimed before their FRA.

Widows or widowers might also be able to claim survivor benefits first and then switch to their own retirement benefit later if it's higher (or the other way around), giving them strategic options.

Rules for Divorced Individuals

If you're divorced, you might be able to get benefits based on your ex-spouse's work record, even if they've remarried. To qualify: your marriage must have lasted at least 10 years, you must be currently unmarried, and you must be at least 62. Your ex-spouse also needs to be entitled to Social Security retirement or disability benefits.

Your claiming benefits on an ex-spouse's record doesn't mess with the benefit amount they or their current spouse can get.

Factor 4: Your Work Plans Post-"Retirement"

If you plan to keep working after you start Social Security, remember that earnings test if you're below your FRA. If your income will be over the annual limits, it might make more sense to delay claiming benefits until you hit FRA or stop working, to sidestep temporary benefit cuts.

If you're not planning to work in retirement, Social Security will likely be a more critical part of your income from day one.

Factor 5: Inflation and Cost-of-Living Adjustments (COLAs)

Social Security benefits are built to keep up with inflation through annual Cost-of-Living Adjustments (COLAs). These COLAs are applied to your current benefit amount.

By delaying your benefits and starting with a higher base monthly payment, your future COLAs will compound on a larger sum. This means your inflation-adjusted income from Social Security will grow more over time, giving you better long-term purchasing power defense.

Yes, your Social Security benefits might be taxable. It depends on your "combined income" (sometimes called "provisional income").

How "Combined Income" Triggers Taxes

Your combined income is your Adjusted Gross Income (AGI) + any nontaxable interest (like from municipal bonds) + 50% of your Social Security benefits for the year.

The IRS has specific income thresholds. For the 2024 tax year (for taxes filed in 2025), these thresholds, which have not changed for many years, are generally:

For individuals (single, head of household, qualifying widow(er)):
- If combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxable.
- If combined income is more than $34,000, up to 85% of your benefits may be taxable.
For those married filing jointly:
- If combined income is between $32,000 and $44,000, up to 50% of your benefits may be taxable.
- If combined income is more than $44,000, up to 85% of your benefits may be taxable.

Consult IRS Publication 915, "Social Security and Equivalent Railroad Retirement Benefits," or a tax professional for the most current figures and rules, as these can be updated.

Strategic Withdrawals and Tax Maneuvering

When you claim Social Security, combined with withdrawals from other retirement accounts (like traditional IRAs or 401(k)s, which are usually taxable income), can significantly affect your total tax bill in retirement. Smart planning can help manage your combined income to potentially lessen the tax bite on your Social Security benefits.

Factor 7: Investment Gambles vs. Guaranteed Growth

Some people advocate for claiming Social Security benefits early (say, at 62) and investing the money, hoping for a better return than the guaranteed increase from Delayed Retirement Credits. This approach involves investment risk.

Markets can be wild, and there's no promise your investments will beat the risk-free, government-backed 8% annual increase (for those born 1943+) you get from delaying benefits past FRA up to age 70. That DRC is a powerful, certain return that’s tough to outdo without taking on real risk.

Making the Call: Tools, Traps, and Expert Input

You need good information and careful thought to make an informed choice.

Your first and best stop is the official Social Security Administration website, SSA.gov. Create a "my Social Security" account there. You can see your personalized statement, which shows your earnings record and estimated benefits at different claiming ages (62, FRA, and 70).

The site also offers many tools, publications, and FAQs to help you understand your choices.

Using Online Calculators

Beyond the SSA's own tools, various independent online Social Security strategy calculators can help you model different claiming scenarios. These can be especially helpful for married couples trying to optimize their joint strategy or for individuals wanting to see break-even analyses.

A Stern Warning: Claiming Decisions Are Mostly Set in Stone

Understand this: your decision about when to start Social Security benefits is generally permanent. There is a one-time option to withdraw your application, but you must do this within 12 months of starting benefits, and you must repay all benefits you and your family received based on your application.

There's also a way to suspend benefits if you claimed at FRA or later, letting you earn DRCs, but this isn't a full withdrawal and has its own rules. Given the long-term impact, careful upfront thinking is paramount.

Your retirement income, including Social Security and withdrawals from other accounts, can affect your Medicare premiums. Higher-income beneficiaries pay an Income-Related Monthly Adjustment Amount (IRMAA) for Medicare Part B (medical insurance) and Part D (prescription drug coverage).

Delaying Social Security can lead to a larger monthly benefit. This, when combined with other income, might push you into a higher IRMAA bracket. This doesn't automatically mean delaying is a bad strategy, but it's another financial piece to track in your overall retirement income plan.

When to Call in the Pros

Many people can sort this out with information from SSA.gov. However, some situations really benefit from professional advice. If your financial picture is complicated—with significant other assets, tricky spousal or survivor benefit issues, or sophisticated tax planning needs—talking to a qualified, fee-only financial advisor or a tax professional can be a game-changer.

They can help you dissect your specific situation, model different outcomes, and understand how Social Security, other income, and taxes all fit together.

Analysis

So, what's the "best" age? If you're looking for a magic number, you're missing the point. The real question is: what's the optimal strategy for your financial battlefield?

Let's cut through the noise. For many people who can afford to wait and have a reasonable expectation of living into their 80s or beyond, delaying Social Security until age 70 is often the mathematically superior move. That 8% guaranteed annual increase from your FRA to age 70, plus COLA adjustments on a higher base, is an incredibly powerful, risk-free return. You simply can't find that kind of deal in today's markets without taking on substantial risk.

The common fear is, "What if I delay and die early? I'll leave money on the table!" It's a valid emotional concern, but Social Security is, at its core, longevity insurance. You're hedging against the risk of outliving your money. If you live a long life, that larger, inflation-protected monthly check becomes a financial lifeline, especially as other assets might deplete or healthcare costs rise.

For married couples, the strategy becomes even more critical. Maximizing the higher earner's benefit by delaying to age 70 isn't just about their income; it's about securing the highest possible survivor benefit for their partner. This can make a world of difference to the surviving spouse's financial stability for potentially decades.

The "break-even" analysis is a useful data point, but it's not the whole story. It doesn't account for the peace of mind that comes with a larger, guaranteed income stream. It doesn't factor in the sequence of returns risk you might face with your investment portfolio. And it doesn't consider the potential for cognitive decline in later years, making a simpler, larger, automated income stream highly valuable.

Think of it this way: delaying Social Security is a bet on your own longevity, backed by the full faith and credit of the U.S. government. If you have other assets to live on in your 60s, making this "bet" can pay off handsomely in your 70s, 80s, and 90s. It's about playing the long game, not just the next few years.

Of course, if you genuinely need the money sooner, or if your health outlook is poor, claiming earlier makes sense. The system is designed to provide flexibility. But don't let impatience or a misunderstanding of the long-term benefits lead you to a suboptimal decision if you have other choices.

Final Thoughts

The "best" age to start taking Social Security isn't a number etched in stone; it's a strategic decision you tailor to your own life. It demands a clear-eyed look at your health, your financial reserves, your family situation, and what you want your retirement to look like.

Arm yourself with knowledge. Use the tools on SSA.gov to see your personal benefit estimates. Consider every factor we've discussed. Regulations and figures can shift, so always go to the Social Security Administration for the absolute latest information. When you do your homework, you position yourself to make a choice that truly supports your financial security and peace of mind for the long haul.

A larger monthly benefit from delaying Social Security can be a powerful anchor in your retirement income plan. While some can manage this decision using online resources, don't hesitate to seek expert guidance if your financial situation has many moving parts. Your future self will thank you for the diligence you apply today.

Did You Know?

Social Security provides benefits to over 67 million people each month. This includes not only retirees but also disabled individuals and survivors of deceased workers, highlighting its broad impact as a social insurance program.

This article is for informational purposes only and should not be considered financial or investment advice. The views expressed are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer or company. Consult with a qualified financial professional before making any financial decisions.