Overview
- A new study by Boston University and Federal Reserve Bank of Atlanta economists says typical workers forfeit about $182,000 in lifetime discretionary income by claiming before age 70.
- Claiming at 62 locks in smaller checks for life, cutting monthly benefits by about 30% for people with a full retirement age of 67.
- Waiting past full retirement age raises payments each year until 70, with the total boost reaching roughly 32% for those who delay to the maximum age.
- Early filing can still be rational for people with shorter life expectancy or for retirees who want to avoid selling investments at a loss during a market slump.
- For people who work after claiming, the 2026 retirement earnings test sets a $24,480 limit with $1 withheld for every $2 over it, or $65,160 in the year someone reaches full retirement age with $1 withheld for every $3 over, and withheld amounts are credited back once full retirement age is reached.