This Might Be the Perfect Age to Start Collecting Social Security

Key Points

Only around 1 in 10 people wait until 70 to claim Social Security benefits.

Most people will receive more lifetime benefits by claiming at 70.

Financial and health situations should always be considered when making a Social Security claiming decision.

• The $23,760 Social Security bonus most retirees completely overlook ›

Deciding when to claim Social Security is one of the more important retirement decisions that someone will make. Unfortunately, it's not always a straightforward or easy decision. Everyone's situation is different, so different ages make sense for different people.

That said, there is data saying that one specific Social Security claiming age is the best option for most people. Yet, most people tend not to claim benefits then. Let's take a look at what it is.

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Most people are better off waiting

According to a 2022 paper published by the National Bureau of Economic Research (authored by David Altig, Laurence J. Kotlikoff, and Victor Yifan Ye), more than 90% of Americans should wait until 70 to claim benefits. Despite the noted advantage, only 10.2% did so at the time.

The reason most people should wait until 70 is the potential for higher lifetime benefits. You may have to wait until later to receive benefits, but you'll be receiving a higher amount. In the years when you first begin receiving benefits, you'll be playing catch-up to someone who claimed earlier, but eventually, the larger benefits will result in more lifetime benefits.

Your break-even age is when the amount of lifetime benefits you receive from claiming at 70 equals those you would've received from claiming at an earlier age. Here are the break-even ages between 70 and other eligible claiming ages:

Age 69:84 years and 6 monthsAge 68:83 years and 6 monthsAge 67:82 years and 6 monthsAge 66:82 years and 2 monthsAge 65:81 years and 7 monthsAge 64:80 years and 11 monthsAge 63:80 years and 9 monthsAge 62:80 years and 4 months

Before these break-even ages, you would've received more lifetime benefits by claiming at those respective ages. After these ages, you would've received more by claiming at 70.

A lot of people could be leaving money on the table

It's not just the break-even age that matters. It's how many people are expected to live past that.

According to the Social Security Administration's Actuarial Life Table, at age 70, men are expected to live until 84.09, and women until 86.27. In both cases, they are well above the break-even ages.

By claiming earlier than 70 and making it past the break-even age, you're leaving money on the table. By making it to at least the life expectancy, you could really be leaving money on the table.

Understandably, though, many people have no interest in waiting until 70. Some need the funds as soon as possible, while others may have health issues that warrant taking benefits earlier. The data support 70 as the ideal claiming age, but always keep your personal situation in mind.

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