The age at which you claim your Social Security benefits plays a major role in how much monthly income you’ll receive during retirement. Since most of your living expenses during your senior years will depend on this income, choosing the right time to start is a big decision.
How Social Security Benefits Are Calculated
The Social Security Administration (SSA) calculates your benefits using a formula that considers your taxable earnings over 35 working years. If you haven’t worked a full 35 years, zeros will be added for the missing years, which reduces your benefit.
Each year, the benefit amount is adjusted for inflation through the Cost of Living Adjustment (COLA). In 2025, this adjustment is 2.5%, helping retirees maintain purchasing power despite rising prices.
Deciding When to Claim Social Security
Your choice depends on several personal factors:
Financial needs – Can you afford to delay?
Health and life expectancy – Do you expect to live well into your 80s or 90s?
Job status – Are you still working or planning to retire soon?
There are three important ages to keep in mind:
Age 62: This is the earliest you can claim benefits. However, doing so comes with a permanent 30% reduction in monthly payments.
Full Retirement Age (FRA): If you were born in 1960 or later, your FRA is 67. Claiming at this age ensures you receive 100% of your benefit.
Age 70: If you delay until 70, you’ll earn delayed retirement credits, increasing your benefit by 8% per year past your FRA. This gives you the maximum possible monthly payout, but benefits stop increasing after age 70.
Maximum Social Security Benefits in 2025
To qualify for the maximum benefit, two key requirements must be met:
- You must have earned at least the maximum taxable income for Social Security each year — $176,100 in 2025.
- You must have done so for 35 years.
Here’s a breakdown of the maximum monthly Social Security payments in 2025 based on when you start claiming:
| Age When You Claim | Monthly Benefit | Notes |
|---|---|---|
| 62 (Early) | $2,831 | Includes 30% reduction |
| 67 (Full Retirement Age) | $4,018 | No penalties or increases |
| 70 (Maximum Delay) | $5,108 | Includes delayed retirement credits |
So, waiting can increase your monthly income by over $2,000 compared to claiming early. But it depends on whether you can afford to wait.
What Most People Actually Receive
While the maximum benefits sound attractive, the average retiree gets much less. After the 2025 COLA, here are the average monthly Social Security benefits:
Single retired worker: $1,976
Married couple (both receiving benefits): $3,089
Widowed beneficiary without children: $1,832
Disabled worker: $1,580
Widowed parent with two children: $3,761
As you can see, most people don’t qualify for the maximum benefit. That’s why it’s important to plan realistically based on your earnings, savings, and lifestyle goals.
Deciding when to claim Social Security is one of the most important financial decisions you’ll make in retirement. While the maximum benefit at age 70 can be appealing, it’s not the right choice for everyone. If you need the money earlier or have health concerns, claiming at 62 or 67 might make more sense.
However, if you have a strong work history and can wait, delaying until age 70 can significantly boost your monthly income for life. No matter what, understanding your options and planning ahead will help you enjoy a more secure and comfortable retirement.
