Americans Are Waiting Longer to Claim Social Security. Here's Why You May Not Want to Jump on the Bandwagon.

When you apply for Social Security is one of the most impactful retirement decisions you'll make. It determines the size of your benefits, which in turn affects how much you need to withdraw annually from personal savings to cover your costs.

Recent data have revealed that seniors are increasingly waiting until older ages to apply for benefits, and there are some compelling reasons why. But that doesn't mean it's the right move for you.

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Why seniors are waiting longer to apply for Social Security

The average Social Security claiming age has been slowly climbing for decades, rising from 63.6 in 2005 to 65.2 as of 2024. While the difference might seem small, it has a meaningful effect on your benefits.

Every month that you claim Social Security under your full retirement age (FRA) -- 67 for most workers today -- shrinks the checks you qualify for. Specifically, you lose 5/9 of 1% per month (6.67% per year) for up to 36 months of early claiming, then 5/12 of 1% (5% per year) thereafter.

Someone who applies for Social Security at 63 only receives 75% of the amount they would have qualified for had they waited until their FRA of 67 to sign up. That's enough to shrink the $2,079 average monthly benefit as of March 2026 to $1,559 per month. By waiting another two years, you'll get approximately 87% of the benefit you'd qualify for at your FRA. That's about $1,809 per month if you qualify for the average benefit at age 67.

As living costs continue to rise and Social Security cost-of-living adjustments (COLAs) fail to keep pace with inflation, many are choosing to delay their applications to lessen the early claiming penalty they face. Some even hold off on Social Security until after their FRA. Your checks grow by 2/3 of 1% per month (8% per year) after this point until you qualify for your maximum benefit at 70. But that doesn't mean waiting to apply is your best move.

When waiting to claim Social Security doesn't make sense

Waiting to claim Social Security can lead to a larger lifetime benefit in some circumstances, but there are also times when it makes sense to claim early. For example, if you're unable to work and have little personal savings to fall back on, claiming Social Security early could be the difference between keeping your home and losing it.

Early claiming could also lead to a larger lifetime benefit if you have a short life expectancy. However, you should be aware that this move can permanently reduce any survivor benefits your family is eligible for after you die.

You may also prefer to sign up early if there are others in your household who can claim on your work record, like your spouse or minor or disabled children. They can't receive these benefits until you apply, so signing up early could open the door to multiple checks.

It's worth considering all your options before deciding when to apply for checks. If other household members will be affected by your choice, include them in the conversation so you're all on the same page.

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