Each year as retirement approaches, many individuals evaluate their Social Security claiming strategies to optimize the income they will receive during retirement. The decision about when to begin collecting Social Security benefits can have lasting effects on monthly payments and lifetime income.
Eligibility for Social Security benefits begins at age 62, but recipients have the option to delay claiming until age 70. This eight-year window presents a complex choice: beginning benefits earlier yields smaller monthly payments over a longer period, while delaying increases monthly amounts due to accruing delayed retirement credits but shortens the period of receipt.
Understanding how to maximize benefits requires consideration of data and the structural mechanics behind Social Security benefits. Research has consistently shown that, for the majority of retirees, waiting until age 70 to claim benefits tends to maximize lifetime Social Security income. This conclusion stems largely from the way delayed retirement credits accumulate.
Upon reaching full retirement age (FRA), which for many is 67, claimants can earn delayed retirement credits by postponing their benefit claims. These credits increase the standard monthly benefit, potentially raising it by up to 24% if delay continues until age 70. This system was designed to balance income across different claiming ages by imposing penalties on early claims and granting credits for delayed claims.
When Social Security was first implemented, the intent was to equalize lifetime income regardless of when benefits were claimed. Early claimants receive smaller amounts over more months, while late claimants receive larger checks but fewer payments. Ideally, lifetime benefits would roughly equalize between these groups.
However, increases in life expectancy have not been matched by adjustments in the penalty-credit system. Consequently, empirical studies indicate that many retirees now live long enough to benefit financially from delaying benefits beyond their full retirement age, effectively breaking the original system's equilibrium. Consequently, waiting until age 70 generally presents the most advantageous strategy for increasing expected lifetime Social Security income.
Besides individual timing, married couples face additional strategic considerations. Social Security includes provisions for spousal benefits, which may amount to up to 50% of the higher earner's standard benefit. Additionally, survivor benefits permit a surviving spouse to maintain receipt of the higher benefit amount from either spouse.
For couples, these factors often make it prudent for the lower earner to claim benefits at an earlier age, thereby providing supplementary household income to support retirement plan distributions such as 401(k) withdrawals. Meanwhile, the higher earner can delay claiming Social Security to accrue larger benefits for both spouses in the long term.
Furthermore, the higher earner's eventual claim can unlock spousal benefits for the lower earner, mitigating the impact of the lower earner's earlier, smaller benefits. This approach ultimately secures greater income for the surviving spouse upon the other's passing and is especially beneficial when there is a significant income disparity between spouses.
Another critical factor in deciding when to claim Social Security is the claimant's health status. For individuals in poor health who are single or have a lower income within a marriage, claiming benefits earlier may provide a better financial outcome given the possibility of a shorter lifespan that limits the benefits of delaying.
Conversely, a claimant in poor health who anticipates their spouse will depend on survivor benefits may find delaying their claim advantageous. This delay can enhance the survivor's future benefit amount, boosting financial security for the spouse who outlives the claimant.
In summary, determining the best age to start Social Security benefits in 2026 relies on multiple factors: systematic data supporting delayed claims for higher lifetime income, spousal benefit provisions influencing claiming order within couples, and personal health considerations affecting life expectancy. By thoroughly evaluating these dimensions, retirees can adopt a strategy tailored to their circumstances that maximizes the value of their Social Security benefits.