If you are single and eligible to receive Social Security retirement benefits, you may be wondering whether there is a “best age” to start collecting those benefits. It’s definitely worth considering your options.
Deciding when to collect Social Security is one of the most important decisions you will make when planning for retirement. Social Security is one of the few sources of retirement income that is predictable, adjusted periodically for inflation, and guaranteed to last as long as you live.
Collecting benefits before you’ve reached your full retirement age permanently reduces your monthly benefit. Over the course of a retirement, which may last 20 to 30 years, that can add up to a significant reduction in overall retirement income.
Of course, there can be good reasons for claiming benefits sooner rather than later; health, family, and financial concerns are all important considerations.
| Your Full Retirement Age1 | |
| Year of Birth | Full Retirement Age |
| 1943 – 1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
- 1 Social Security Administration, “Retirement Planner: Full Retirement Age,” https://www.ssa.gov/planners/retire/retirechart.html.
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- * This material does not constitute a recommendation to engage in or refrain from a particular course of action. The information within has not been tailored for any individual.
The information provided is not written or intended as specific tax or legal advice. MassMutual and its subsidiaries, employees, and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
The following example shows how benefit claiming age can affect monthly and cumulative Social Security benefits for a hypothetical single claimant named Michael.
Meet Michael
Michael is healthy, has never been married, and has many relatives who have lived into their nineties. At age 61, he has no immediate plans to retire; however, he is planning ahead for the income he will need when he does stop working.
Michael was born in 1961, which means his full retirement age is 67, as shown in the chart. His full retirement age benefit currently is $2,400 monthly.
In this example, we’ll compare monthly and cumulative lifetime Social Security benefit amounts for Michael based on three different strategies:
- Begin collecting benefits at age 62
- Begin collecting benefits at full retirement age (FRA)
- Delay receiving benefits until age 70
It’s your Social Security and your decision
As you review these three scenarios, keep in mind that the focus is only on the difference benefit claiming age can make. There are many other factors that may affect your Social Security retirement benefits, and your particular situation may be more complex.
Three filing scenarios
All benefit amounts assume an annual 2.5 percent cost-of-living adjustments (COLAs).2
Assumptions for Michael
- Date of Birth: January 2, 1961
- FRA: 67
- Monthly FRA benefit in today’s dollars: $2,400
- 2 Illustration as of November 28, 2023.
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Filing strategy analysis
Filing strategy 1
Begin collecting benefits at age 62. By starting his benefits at age 62, Michael's full retirement age benefit is reduced to $1,680. If he lives until age 95, Michael’s cumulative lifetime income from Social Security would be $998,328.
Filing strategy 2
Begin collecting benefits at his full retirement age. Michael’s full retirement age benefit is $2,715 per month, an amount that includes annual 2.5 percent COLAs. If Michael lives until age 95, his cumulative lifetime Social Security income will be $1,256,093, which is $257,765 more income than strategy 1 provides.
Filing strategy 3
Delay collecting benefits until age 70. Starting at his full retirement age, Michael earns delayed retirement credits for each month he delays his benefit — up to 8 percent annually.3 If he delays his benefit, he will have to rely on other sources of income during that time. By age 70, his monthly benefit has increased to $3,626 with delayed retirement credits and annual 2.5 percent COLAs. This is $702 more each month than filing strategy 2 provides. With this strategy, Michael receives $1,482,622 in cumulative lifetime benefits.
Any one of these strategies could be the right choice for Michael, depending on his health, family, and financial concerns when he retires.
- 3 Delayed retirement credits may accrue for each month beyond your full retirement age that you delay receiving your benefit. People who were born in 1943 or later can earn up to 8 percent of their full retirement age benefit each year until they reach age 70. Spousal benefits are not eligible for delayed retirement credits.
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Take the guesswork out of your Social Security filing decision.
One of the most important steps you can take is to set up your “my Social Security” page on www.ssa.gov. This is an easy and secure way to view your estimated benefits and earnings history. The Social Security Administration will use this information when it calculates your benefit, so be sure that it accurately reflects your work history.
We’re here to help
Once you and your spouse have set up your my Social Security account, your financial professional can help you explore different filing strategies. With this information, you will be better able to make an informed Social Security filing decision.
Planning is important!
Even if you cannot use certain filing strategies because of your age, Social Security planning is still important.
Depending on your personal situation, waiting even one or two years could result in a larger monthly benefit.
Source: https://www.ssa.gov/pubs/EN-05-10147.pdf
For more information, copies of publications, or to set up your my Social Security account, visit the Social Security Administration website at www.ssa.gov or call toll-free 1-800-772-1213 (TTY 1-800-325-0778).
Final decisions about Social Security filing strategies always rest with you and should be based on your specific needs and health considerations. It is important to acquire as much information as possible so that you can make an informed Social Security claiming decision; one year after the Social Security claiming decision is made, the options for change are extremely limited.
Some people, such as certain federal, state, and local government workers, may be subject to the “Government Pension Offset” and the “Windfall Elimination Provision,” which could decrease their Social Security benefits.
If you work for an employer that offers a retirement plan, your plan benefit may be subject to a Social Security “pension offset” provision. (Your 401(k) contributions and the employer match are not subject to a pension offset.) A pension offset may reduce the amount of your retirement plan benefit when you become eligible to collect Social Security retirement benefits. This reduction may apply whether or not you are collecting Social Security retirement benefits. This could be an important consideration as you make your filing decision. Your plan administrator can tell you whether your plan includes a Social Security pension offset provision and how it might affect your retirement plan benefit.
The Social Security program was created by an Act of Congress and is subject to change. In the past, Congress has made changes to the law, which have affected Social Security benefits. Congress can make changes to the law at any time, which might affect benefits in the future.
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- * This material does not constitute a recommendation to engage in or refrain from a particular course of action. The information within has not been tailored for any individual.
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