Statistics Say: This Is the Best Age to Claim Social Security

For young people, some of the most important questions relate to which career to pursue and which school to attend. But the nature of the big questions changes the older you get. For Americans in their late fifties and early sixties, one of the most pressing questions is: When should I claim Social Security retirement benefits?

Different people answer this question in different ways. However, statistics say there is a best age to claim Social Security.

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Key factors in deciding when to claim Social Security

There's a lot to consider in deciding when to claim Social Security. Some key factors are the same for everyone.

For example, any person who begins receiving Social Security benefits before their full retirement age (FRA) must pay early retirement penalties. If you claim benefits at 62 -- the earliest age possible -- you'll forego 30% of the benefits you would have received by waiting until 67 (which is the FRA for anyone born in 1960 or later).

On a related note, anyone who waits beyond their FRA to claim Social Security will receive delayed retirement credits. If you were born in 1943 or afterward, you'll get an additional two-thirds of 1% for every month you wait until age 70. That amounts to 8% per year in higher benefits.

All Americans considering when to file for Social Security retirement benefits should also think about health insurance. If you wait until age 65 or later, you'll be eligible for Medicare. Although premiums must be paid for Medicare Part B and Part D prescription drug plans (or for Medicare Advantage plans), your health insurance costs will likely be lower than footing the full bill on your own.

However, some factors involved in deciding when to claim Social Security vary from one person to the next. These include your financial position, health, expected longevity, and retirement goals.

What statistics show

Quite a few experts have researched the optimal age to claim Social Security retirement benefits. And their statistical studies came to similar conclusions.

In 2009, Wei Sun and Anthony Webb of the Center for Retirement Research at Boston College published a paper about how much money retirees leave on the table by claiming Social Security at age 62. They found that the best age to claim benefits was between 67 and 70 for individuals who weren't "liquidity constrained" (a polite way of describing those with financial challenges).

David Altig, Laurence J. Kotlikoff, and Victor Yifan Ye conducted an extensive analysis of the data in 2022. They concluded, "We find that virtually all American workers age 45 to 62 should wait beyond age 65 to collect [Social Security]. More than 90 percent should wait till age 70."

Roughly a year later, Neha Bairoliya of the University of Southern California Department of Finance and Business Economics and Kathleen McKiernan of Vanderbilt's Department of Economics echoed that finding. Bairoliya and McKiernan didn't identify the ideal age for claiming Social Security. However, they stated, "Simple present-value calculations indicate that a majority of older individuals should be delaying benefit claims at least to the normal retirement age."

The implication from all three studies is that the best age for claiming Social Security is 70 for most people. There's also a strong consensus that beginning to collect benefits before the FRA isn't optimal financially. Keep in mind, though, that it's possible for those who are financially able to retire early without receiving Social Security benefits.

The truth of the matter

Mark Twain once wrote, "There are three kinds of lies: lies, damned lies, and statistics." I don't think the statistics cited previously are lies. However, I don't believe they tell the full story, either.

Some of those factors specific to individuals mentioned earlier, such as health and retirement goals, aren't easy to quantify. It's next to impossible to put a price tag on being able to spend more time with grandchildren or being able to visit places on your bucket list while you're still healthy enough to travel. For some people, claiming Social Security before age 70 or before their FRA can make those things possible.

The statistical studies are accurate based on the data they analyzed. But the truth of the matter is that statistics can't capture everything. There isn't a one-size-fits-all best age to claim Social Security.

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