When to Claim Social Security: 62, 67, or 70? A Data-Driven Comparison

The Single Most Important Retirement Decision

When to claim Social Security is arguably the most consequential financial decision you'll make in retirement. Claim at 62 and you lock in a permanently reduced benefit. Wait until 70 and you receive 76% more each month than if you'd claimed at 62. For a couple, this decision can mean a difference of $200,000-$500,000 in lifetime benefits.

Yet nearly 30% of retirees claim at the earliest possible age (62), often without understanding the long-term implications. This article provides a data-driven analysis to help you make the optimal choice for your situation.

Understanding the Numbers: 62 vs. 67 vs. 70

Let's start with a concrete example using current Social Security rules (2025):

Assume your Full Retirement Age (FRA) benefit is $3,000/month ($36,000/year)

Claiming at Age 62 (Early)

• Monthly benefit: $2,100 (30% reduction)
• Annual benefit: $25,200
• Reduction: Permanent 30% penalty for claiming 5 years early

Claiming at Age 67 (Full Retirement Age)

• Monthly benefit: $3,000 (100% of FRA benefit)
• Annual benefit: $36,000
• Bonus: None, but no penalty either

Claiming at Age 70 (Delayed)

• Monthly benefit: $3,720 (24% increase)
• Annual benefit: $44,640
• Bonus: 8% increase per year for delaying 3 years past FRA

Breakeven Analysis: When Does Waiting Pay Off?

The most common question: "When do I break even if I delay?"

Age 62 vs. Age 67 Breakeven

If you claim at 62 instead of 67:

• You receive benefits 5 years earlier ($25,200 × 5 = $126,000 collected)
• But your benefit is $10,800/year lower forever
• Breakeven age: ~79 (12 years after claiming at 67)

Interpretation: If you live past 79, claiming at 67 gives you more lifetime income than claiming at 62.

Age 67 vs. Age 70 Breakeven

If you delay from 67 to 70:

• You forgo 3 years of benefits ($36,000 × 3 = $108,000 not collected)
• But gain $8,640/year more forever
• Breakeven age: ~82.5 (12.5 years after claiming at 70)

Interpretation: If you live past 82-83, claiming at 70 gives you more lifetime income than claiming at 67.

Life Expectancy Matters

According to Social Security actuarial tables:

• A 65-year-old man has 50% chance of living past 84
• A 65-year-old woman has 50% chance of living past 86
• At least one member of a 65-year-old couple has 50% chance of living past 90

Given these statistics, most people (especially women and married couples) benefit from delaying past 62.

The Case for Claiming at 62

Despite the math favoring delay, claiming at 62 makes sense in specific situations:

1. Poor Health or Shortened Life Expectancy

If you have serious health conditions suggesting you won't live past 75-80, claiming early maximizes lifetime benefits. Be realistic—most people overestimate health issues.

2. Urgent Financial Need

If you're unemployed with depleted savings and can't find work, claiming at 62 may be necessary for survival. However, if you have retirement savings, consider withdrawing from those first and delaying Social Security.

3. Very High Net Worth

If you have $5+ million in assets and Social Security represents less than 10% of your retirement income, the claiming age decision is less consequential. Taking it early provides immediate liquidity without meaningfully affecting your financial security.

The Case for Claiming at 67 (Full Retirement Age)

Claiming at FRA represents a middle ground:

Advantages

• No reduction for early claiming
• No benefit waiting until 70
• Ability to work without earnings penalty
• Provides income while other assets grow

When 67 Makes Sense

• Modest savings: You need Social Security to supplement inadequate retirement savings
• No pension: Social Security is your only guaranteed income source
• Average health: Life expectancy around 80-85, near the breakeven age
• Want flexibility: Don't want to delay but don't want penalty of claiming at 62

The Case for Claiming at 70 (Maximum Benefit)

Delaying to 70 provides the highest possible benefit and several strategic advantages:

1. Maximize Survivor Benefits

The higher-earning spouse's benefit becomes the survivor benefit when they pass. If the higher earner delays to 70, the surviving spouse receives that higher benefit for life.

Example: Husband's benefit at 70 is $44,640/year. Wife's own benefit is $24,000. When husband dies, wife steps up to his $44,640 benefit—a permanent increase of $20,640/year.

2. Insurance Against Longevity

If you live to 95, the extra income from delaying to 70 compounds over 25 years. At 3% COLA, your $44,640 age-70 benefit grows to $90,000+/year by age 95.

3. Lower Taxes on Other Income

By delaying Social Security, you can withdraw from IRAs/401(k)s during ages 67-70 at potentially lower tax rates (before RMDs force large withdrawals). Then at 70, you have Social Security reducing the need for taxable IRA withdrawals.

4. You Have Other Assets

If you have $500,000+ in retirement savings or a pension covering expenses, you can afford to delay and lock in maximum guaranteed income.

Spousal and Survivor Benefits

Spousal Benefits Basics

• Spouse can receive up to 50% of your FRA benefit
• Claiming spousal benefit early (before spouse's FRA) results in reduction
• You must have claimed your benefit for spouse to claim spousal benefit

Survivor Benefits

• When one spouse dies, survivor receives the higher of the two benefits
• If higher earner delays to 70, survivor benefit is maximized
• This is especially valuable for protecting the surviving spouse (usually the wife) in later years

Optimal Couple Strategy

Common recommendation:

• Higher earner: Delay to 70 to maximize survivor benefit
• Lower earner: Claim anytime 62-67, since survivor will step up to higher earner's benefit anyway

Tax Implications of Social Security Timing

How Social Security Is Taxed

Up to 85% of Social Security benefits may be taxable based on "provisional income":

Provisional Income = Adjusted Gross Income + Tax-Exempt Interest + 50% of Social Security

Married Filing Jointly:

• Provisional income under $32,000: 0% of SS taxable
• $32,000-$44,000: Up to 50% of SS taxable
• Over $44,000: Up to 85% of SS taxable

Strategic Timing for Taxes

Scenario: Delay SS, do Roth conversions ages 67-70

• Convert $50,000/year from Traditional IRA to Roth during ages 67-70
• Pay taxes at 12-22% brackets (without SS income pushing you higher)
• Start SS at 70 with larger benefit
• Result: Lower lifetime taxes, more Roth money (tax-free), higher SS benefit

Using Bullseye to Model Your Social Security Decision

Bullseye's year-by-year projections let you compare different Social Security claiming ages side-by-side:

• Compare claiming ages directly: Input your estimated benefit and test scenarios claiming at 62, 67, and 70 to see total lifetime income and asset balances
• See tax impact: Bullseye calculates how Social Security income affects your federal taxes, state taxes, and Medicare IRMAA surcharges
• Model RMD interactions: See how Required Minimum Distributions from age 73+ combine with Social Security and whether delaying SS helps you stay in lower tax brackets
• Test longevity scenarios: Project to age 95 to see if delaying Social Security leaves you with more money in later retirement
• Coordinate with spouse: Input separate claiming ages for you and your spouse to optimize the couple's combined lifetime benefits
• Factor in COLA: Enable the COLA (cost-of-living adjustment) toggle to see how 3% annual increases compound over 20-30 years

Rather than relying on breakeven calculators that ignore taxes and other income sources, Bullseye shows your complete financial picture at each claiming age—accounting for withdrawals from retirement accounts, rental income, expenses, taxes, and Medicare costs.