Identifying the Costliest Ages to File for Social Security Benefits

Choosing when to begin drawing Social Security can raise or lower lifetime income by tens of thousands of dollars. Recent data from policy institutes and government sources underscore that filing at certain ages reduces monthly payments permanently, while postponing a claim can deliver inflation-protected increases that rival or exceed many fixed-income investments.

The Popular but Costly Decision to File at 62

Age 62 is the earliest point at which Americans become eligible for retirement benefits, and it remains the most common choice. The Bipartisan Policy Center reports that 29% of retirees elect to file as soon as they qualify. The attraction is clear: payments begin immediately, providing a predictable cash flow five years before the Social Security Administration’s full retirement age (FRA) of 67.

However, filing at 62 trims monthly benefits by a fixed 30% compared with waiting until the FRA. The reduction deepens when measured against the maximum age-70 benefit: a retiree who files at 62 receives 44% less each month than someone who delays until 70. These cuts apply for life and extend to survivor benefits that a spouse or dependent child might later receive.

The Urban Institute points out that smaller checks expose early filers to greater longevity risk—the danger that they outlive their money. Because Social Security is designed to provide inflation-adjusted income for life, reducing the base payment at 62 magnifies the financial impact of living into an advanced age.

Why Waiting Until 65 or 66 Can Pay Off

For workers nearing FRA, the math changes quickly. A decision to wait even one or two years past 62 can meaningfully boost lifelong income because the penalty for early filing shrinks as FRA approaches. A person who defers the claim until 65 or 66 avoids part of the 30% reduction and shortens the time during which benefits are withheld.

In addition, delaying beyond FRA triggers delayed retirement credits worth 8% per year until age 70. These credits are guaranteed by law and compound on the higher FRA amount. As a result, someone who turns 66 and waits the full four years to 70 secures a 32% increase over the FRA benefit and a 44% increase over filing at 62.

Comparing Delayed Credits with Market Yields

Delayed retirement credits function much like a government-backed annuity. Measured as an annual return, the 8% increase is competitive with—or significantly higher than—current yields in the fixed-income market. Ten-year U.S. Treasury notes yielded 4.17% on December 16, 2025, while AAA-rated corporate bonds averaged 5.37% on December 12 of the same year. Because the 8% Social Security credit is inflation-protected and free of default risk, the relative advantage becomes even more pronounced for risk-averse retirees.

For context on how the program calculates early and delayed benefits, the Social Security Administration explains its rules and offers personalized estimates through its online “my Social Security” portal. The estimates allow workers to test multiple filing scenarios before making an irreversible decision.

Imagem: imagem internet 28

Impact on Survivors and Household Planning

Timing also affects family members. Survivor benefits are based on the deceased worker’s actual payment, so claiming early reduces the amount that a widow, widower or eligible child later receives. Conversely, postponing the claim raises the survivor benefit by the same delayed-credit percentage, providing a larger safety net for the household.

Considerations for Near-Retirees

While some retirees must claim as early as possible due to health, employment conditions or liquidity needs, the figures above highlight the financial trade-offs embedded in the decision. Workers approaching FRA who have other income sources—such as savings, part-time earnings or pensions—may find that waiting a few years produces a lifetime benefit increase unmatched by conservative investments available in today’s market.

Because exact outcomes depend on longevity, marital status and overall assets, the Social Security Administration allows claimants to withdraw an application once within the first 12 months and repay benefits already received, effectively offering a second chance to reset their filing date. After that window closes, the decision is permanent.

Key Numbers at a Glance

• Earliest eligibility age: 62
• Percentage of retirees filing at 62: 29%
• Monthly benefit cut at 62 versus FRA 67: 30%
• Monthly benefit cut at 62 versus age 70: 44%
• Delayed retirement credit: 8% per year from FRA to 70
• 10-year U.S. Treasury yield (Dec. 16 2025): 4.17%
• AAA corporate bond yield (Dec. 12 2025): 5.37%

For many households, avoiding an early claim and aiming closer to or beyond FRA can mitigate longevity risk, bolster survivor benefits and generate a guaranteed return that outpaces typical bond yields. Evaluating personal health, employment prospects and alternative income sources remains essential, but the data suggest that age 62 is often the costliest entry point into Social Security.

Crédito da imagem: Getty Images