Social Security at 62, 67, or 70? How to Choose the Right Time to Collect
When should you start collecting Social Security? It’s one of the most important—and personal—decisions you’ll make in retirement planning. Do you take the money at 62 and run? Wait until your full retirement age (FRA)? Or hold out until 70 for the biggest check possible? Each strategy comes with its own benefits, trade-offs, and long-term impact.
Let’s start with the basics. Your Social Security benefit is based on your 35 highest earning years, adjusted for inflation. The amount you receive at your FRA (typically between age 66 and 67) is called your Primary Insurance Amount (PIA). If you start collecting early, say at 62, your benefit is permanently reduced. If you delay, you’ll earn delayed retirement credits—an 8% increase in your benefit per year up to age 70.
Collecting at 62: The Early Exit
Taking Social Security at 62 is tempting. You get money now, which can ease the pressure on your investment portfolio and reduce withdrawals. But that comes with a cost: your benefit is reduced by about 30% for life. Plus, if you’re still working, you’ll face an earnings cap of $23,400—go over that, and Social Security will withhold $1 for every $2 you earn. You’ll also lock in a lower base for survivor benefits, which could impact your spouse down the road. That said, for retirees with shorter life expectancies or immediate income needs, collecting early might make sense.
Collecting at 67: Full Retirement Age
Waiting until your FRA means you’ll get your full benefit—no reductions, no penalties. It’s a balanced approach. You’re not delaying gratification as long as age 70, but you’re also not taking a big cut like you would at 62. Social Security is tax-friendly too. Most states don’t tax it, and at the federal level, only up to 85% of it may be taxed depending on your income. If your health is average and you don’t need the money right away, starting at 67 could be the safe middle ground.
Collecting at 70: The Max Payout
Delaying until 70 offers the biggest check—24% more than at 67 and roughly 76% more than if you started at 62. That’s powerful. Higher benefits mean a more secure income floor, better survivor protection for a spouse, and a stronger hedge against outliving your money. Waiting also opens up the opportunity to implement tax strategies, like Roth conversions, while your taxable income is lower before benefits begin. But there are downsides. You’ll need to rely on other assets for income until 70, and there’s always the risk that you won’t live long enough to break even on the delay.
Key Considerations
So what’s the right choice? There’s no one-size-fits-all answer. A break-even analysis can help—typically, if you live past your late 70s or early 80s, delaying pays off. But other factors matter just as much:
- Health & longevity: Poor health may justify earlier collection.
- Marital status: Delaying can increase survivor benefits.
- Income needs: If you need cash now, early collection may be necessary.
- Tax strategy: Pairing delayed benefits with Roth conversions or lower portfolio withdrawals can optimize long-term wealth.
The bottom line: Social Security isn’t just a monthly check—it’s a critical piece of your overall retirement puzzle. Coordinating it with your investments, taxes, and life goals ensures that you get the most from the system you’ve paid into your whole career.
You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.
Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.
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