How Your Social Security Benefit Changes Each Year You Wait Past 62

There's nothing wrong with claiming Social Security at 62 if that's what you want to do. But if you think that your checks won't be affected or that they'll automatically get a huge boost at your full retirement age (FRA), you might want to pump the brakes a little.

While claiming Social Security at 62 gives you the most checks, it doesn't always give you the largest lifetime benefit. Delaying your application is one of the best ways to increase how much you get from the program, but the rate at which your benefits climb changes over time.

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How your Social Security benefits change over time

The Social Security Administration first looks at your earnings history and uses it to calculate the benefit you qualify for at your FRA. This is 67 if you were born in 1960 or later.

Claiming checks under your FRA shrinks your benefits by 5/9 of 1% per month for up to 36 months, and then 5/12 of 1% per month thereafter. Put another way, claiming immediately at 62 can shrink your checks by up to 30%. That loss is often permanent, though if you have some money withheld due to the earnings test, you may qualify for a one-time boost when you reach your FRA.

Every month you wait to apply increases your checks, and the rate of increase accelerates over time. Here's what that looks like for someone with an FRA of 67:

Source: Social Security Administration.

Note that your benefits don't stop growing once you reach your FRA. Continuing to delay boosts your checks until you qualify for your largest benefit at 70. But that doesn't mean that waiting until then is your best option either.

The right claiming age depends on personal factors

Many people do qualify for their largest lifetime benefits at 70. But some people cannot afford to delay that long because they don't have enough personal savings to cover all their expenses. In this case, it's better to apply for checks early, even if it means you get a little less over your lifetime.

When finances aren't an issue, you have to consider what makes the most sense for your life expectancy. Generally, early claimers get more by claiming early, while those with average or above-average life expectancies may get a bigger lifetime benefit by waiting to apply.

Married couples also have to weigh what makes the most sense for their spouse. If your partner only qualifies for a spousal benefit, you may decide to sign up earlier than you otherwise would so they can also claim checks. Or you might decide not to claim benefits at all while you're alive so your spouse qualifies for a larger survivor benefit after you're gone.

Consider a few options before you decide which is right for you. This is easiest if you check out the benefit estimator tool in your free my Social Security account. It tells you about how much you'll qualify for at every claiming age, so you can decide how long you'd like to wait before applying.

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