Overview
- Economists writing in the Journal of Financial Planning say age 70 is not the most financially rewarding start date for many unless discount rates are low or life expectancy is well above average.
- Advisers highlight practical reasons early filing can be rational at 62, including poor health, inability to work, a need for supplemental income, spousal coordination, or personal peace of mind.
- For those born in 1960 or later, claiming at 62 cuts monthly checks by about 30% versus full retirement age at 67, while delaying to 70 raises payments by roughly 24% and growth stops after 70.
- Claiming before full retirement age triggers the earnings test, with 2025 rules allowing up to $23,400 in wages before withholdings and $1 withheld for every $2 earned above that threshold.
- Critics of blanket delay strategies argue common spreadsheet models undervalue present dollars by assuming very low investment returns, which can tilt the math toward earlier claiming for some retirees.