The decision of when to file for Social Security retirement benefits is a pivotal one that influences financial stability throughout the entirety of retirement. Despite its significance, many individuals approach this choice without fully evaluating the optimal age for claiming benefits, potentially sacrificing substantial income.
As the year 2026 approaches, those considering initiating Social Security benefit claims should thoroughly examine whether the timing aligns with their financial best interests. Age plays a crucial role in determining the amount of Social Security income received monthly and over a lifetime. Moreover, the age at which benefits begin affects the ongoing income available to surviving spouses who may qualify for Social Security survivor benefits if the claimant was the higher earner.
Eligibility and Age Impact on Benefits
Retirement benefits eligibility starts at age 62, which is the earliest age for filing a claim. However, extensive research and data analyses indicate that claiming at the minimum eligible age often results in reduced lifetime income compared to waiting longer.
A notable 2019 study by United Income found that nearly 60% of retirees accrued greater lifetime wealth by postponing claims until age 70. In contrast, only 6.5% realized greater wealth by claiming before reaching 64 years old. Early claimants were estimated to leave around $111,000 in Social Security benefits uncollected per household on average.
Further research in 2023 by the National Bureau of Economic Research reaffirmed these conclusions. Although merely 10.2% of American workers currently claim Social Security benefits at age 70, data suggest over 90% would financially benefit from waiting until then. For many retirees, the median loss in lifetime discretionary spending due to premature claims amounts to approximately $182,370 per household. Significant gains from delayed claims were typical, with 25% of workers seeing lifetime spending increases exceeding 17%, and for 10%, gains surpassing 26%.
The consistent message is clear: for the majority of individuals, delaying Social Security claims until age 70 enhances lifetime financial outcomes.
Evaluating Whether to Delay or Claim Early
While data indicate that maximum retirement income is often achieved by deferring claims past the full retirement age, some scenarios warrant deviation from this strategy. For example, individuals claiming spousal benefits cannot increase their benefit amount by delaying claims beyond their full retirement age, making immediate claiming at full retirement age more advantageous in these cases.
Additionally, retirees experiencing rapid depletion of funds in other retirement accounts, such as 401(k)s, might find it necessary to start Social Security benefits sooner to maintain sufficient income, especially when options to reduce expenses or return to employment are limited.
Outside these exceptions, postponing Social Security claims remains the most effective route to securing higher, inflation-protected, and guaranteed lifetime income. Given these benefits, maximizing Social Security income in retirement through a delayed claim supports greater financial security in advanced age.
Those preparing to claim Social Security in 2026 should carefully weigh their individual circumstances, particularly their age relative to full retirement age and whether delayed benefits are feasible, to avoid unnecessary reductions to lifetime income.