Overview
- Before filing, estimate monthly income from 401(k)s and IRAs so you know how much Social Security you actually need.
- You can claim as early as 62, full retirement age is 67 for those born in 1960 or later, and waiting to 70 provides the maximum monthly benefit.
- Claiming at 62 can reduce your monthly check by up to about 30% compared with filing at full retirement age.
- Delaying increases the monthly amount but can lower lifetime totals if you die earlier, as a $75,000 earner would get roughly $600 more per month at 70 than at 67 yet collect less by age 76, with a crossover versus starting at 62 around age 78 years 7 months.
- Net income is under pressure because roughly half of beneficiaries pay federal tax on some benefits starting at $25,000/$32,000 of income and benefits have lost about 20% of buying power since 2010.