Many people begin collecting their Social Security retirement benefits as soon as they become eligible at age 62. However, claiming benefits before their full retirement age permanently reduces monthly benefit amounts.
The stakes can be higher for married couples. Claiming benefits before reaching full retirement age affects the amount of Social Security income a married couple receives when both spouses are alive and, in many cases, the amount a surviving spouse receives when one spouse passes away.
Of course, there may be good reasons for filing before your full retirement age. Health, family, and financial concerns are all important considerations. The Social Security Administration bases your full retirement age on the year you were born, as shown in the chart on this page. (For survivors’ benefits, full retirement age is calculated differently.)1
| Your Full Retirement Age2 | |
| 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, “Social Security Benefit Amounts for the Surviving Spouse by Year of Birth,” www.ssa.gov/pubs/EN-05-10084.pdf.
[back] - 2 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.
Married couples have choices
You have important choices to make when it comes to claiming your Social Security retirement benefits. In many cases, waiting even one or two years can result in a significantly higher monthly benefit, and in the cumulative benefits the couple receives over a lifetime.
The following examples show the difference that benefit claiming age can make for married couples. For the sake of simplicity, these examples only address the affect that benefit claiming age has on Social Security benefit amounts.
It’s your Social Security and your decision
Remember that there are many factors that can affect the amount of your benefits. Consider all your options carefully before making your filing decision.
Meet Sam and Lei
Sam and Lei are both 56, healthy, and still working. At their full retirement age of 67, let’s assume Sam and Lei are eligible to receive a monthly benefit of $2,500 and $2,000, respectively. Let’s look at the difference filing age can make for this hypothetical couple.
For both of the following examples, we’ll assume that Sam lives until age 85 and that Lei survives him by five years, until age 90.
Filing strategy 1: Begin collecting benefits at age 62
All benefit amounts assume an annual 2.5 percent cost-of-living adjustments (COLAs).3
Analysis: If Sam and Lei file for benefits as soon as they become eligible at age 62, before their full retirement age of 67, each will receive a reduced monthly benefit amount.
At age 62, Sam receives a monthly benefit of $2,093 and Lei receives $1,674 monthly. Both amounts reflect an early filing reduction. At age 70, Sam and Lei receive a combined monthly benefit of $4,477.
By the time both reach age 84, Sam’s monthly benefit has increased to $3,515, and Lei’s monthly benefit has increased to $2,812. Their combined monthly benefit is $6,327. At age 85, Sam passes away, and his monthly benefit of $3,515 stops.
Without Sam’s benefit, Lei’s household income from Social Security decreases. She continues to receive her own monthly benefit amount of $2,882. As Sam’s widow, Lei also receives a survivor benefit of $1,339, for a total monthly benefit of $4,221.
If Lei lives until age 90, the cumulative lifetime Social Security payout for this household will be $1,570,848.
- 3 Illustration as of December 6, 2023.
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Filing strategy 2: Delay benefits until age 70
All benefit amounts assume an annual 2.5 percent COLA.4
Analysis: Sam and Lei earn delayed retirement credits for each year beyond their full retirement age of 67 that they delay receiving benefits — up to 8 percent annually. At age 70, Sam’s monthly benefit has increased to $4,380, and Lei’s has increased to $3,504, for a combined monthly benefit of $7,884.5
At age 84, their combined monthly benefit has increased to $11,140. Sam passes away at age 85, and his monthly benefit of $6,189 stops. Lei will continue to receive her monthly benefit of $5,075 and a survivors benefit of $1,269, for a combined monthly benefit of $6,344. Assuming Lei lives until age 90, the cumulative lifetime Social Security payout for this household would be $2,010,024.
Total Social Security benefits always decrease when one spouse dies. However, waiting past full retirement age to claim benefits can make a significant difference for a couple when both are alive and when one spouse remains. The difference between lifetime cumulative benefits generated by filing strategy 2, and compared to filing strategy 1 is $439,176. This is money that Sam and Lei could be leaving on the table by taking benefits at age 62.
Strategy Comparison: The Impact of Waiting on Annual Benefits
- 4 Illustration as of December 6, 2023.
[back] - 5 Delayed retirement credits may accrue for each month beyond your full retirement age that you delay receiving your individual benefits. People who were born in 1943 or later can earn up to 8 percent simple interest of their full retirement age benefit for each full year until they reach age 70.
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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 still important!
Even if you cannot use certain filing strategies because of your age, Social Security planning is still important.
Depending on your particular situation, waiting even one or two years will result in a larger monthly benefit. For married couples, coordinating benefit start ages remains a powerful way to maximize benefits.
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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