Should You Take Social Security at 62, 67, or 70? Here's How to Decide.

For a long time, I assumed I’d take Social Security somewhere between 62 and 65. Get the money flowing, reduce what I’m pulling from my portfolio, move on. It felt like the obvious move.

Then I actually looked at my Social Security statement.

My projected benefit at 62: $2,026 a month. My projected benefit at 70: $3,586 a month. That’s a difference of $1,560 every single month. For the rest of my life. Guaranteed.

Most people take Social Security as soon as they can. The money feels tangible, the future feels uncertain, and waiting is hard. But the timing decision is one of the strongest levers in your entire retirement plan, and pulling it right can mean thousands of extra dollars a month for the rest of your life.

Why the gap is so large

Social Security calculates your benefit based on your earnings record, but the age you claim determines what percentage of that benefit you actually receive. Claim at 62 and you get 70% of your full benefit. Wait until 70 and you get 124%. That’s a 77% difference in monthly income, and it’s permanent.

Between your full retirement age of 67 and age 70, your benefit grows by 8% per year in guaranteed delayed retirement credits. You won’t find an 8% guaranteed annual return anywhere else. Not in bonds. Not in a savings account. Not in the stock market on a consistent basis.

 That 8% annual increase is guaranteed, inflation-adjusted, and lasts for life. It’s one of the best deals in retirement planning, and most people walk right past it.

The strategy worth understanding

Once you see that gap, a different approach starts to make sense: what if you withdrew a little more from your portfolio in your early retirement years, specifically to delay claiming Social Security and lock in the larger benefit?

Instead of treating Social Security as the first income source you turn on, you treat it as the last. You cover expenses from your portfolio between retirement and 70, then layer in Social Security as a guaranteed income floor that reduces what you need to pull from investments for the rest of your life.

This is the approach I’m planning for my own retirement. Withdrawing a little more in my 60s to delay claiming means I’ll get $1,560 more per month from Social Security for the rest of my life. The math starts working in my favor around age 80, and every year after that the gap compounds.

Most break-even points for delaying Social Security land somewhere between ages 80 and 82. Anyone in reasonable health who expects to live past that point comes out ahead by waiting.

How to find your own numbers

Everyone’s situation is different, but the starting point is the same. Go to ssa.gov/myaccount and log in with your Social Security number. Your statement shows three numbers:

• Your estimated benefit at 62 the reduced early claiming amount

• Your estimated benefit at 67 your full retirement age benefit

• Your estimated benefit at 70 the maximum you can receive

The gap between those numbers is your leverage. Once you see it in black and white, the timing decision stops being abstract.

From there, the question is whether you can afford to bridge the gap. If you have enough in your portfolio to cover expenses between retirement and 70 without claiming Social Security, the delayed benefit is almost always worth pursuing. If you need the income sooner, you claim sooner. There is no universal right answer, but there is a right answer for your specific situation, and it starts with knowing your numbers.

The couples question

If you’re married, the Social Security timing decision gets more interesting because you have two benefits to coordinate.

The most common strategy is for the higher earner to delay as long as possible while the lower earner claims earlier. Here’s why that works: if the higher earner delays to 70 and dies first, the surviving spouse receives the higher earner’s larger benefit for the rest of their life. Delaying the bigger benefit is essentially longevity insurance for both of you.

The lower earner claiming early covers some household income in the meantime, which reduces the portfolio drawdown needed to bridge the gap. Health, age gap between spouses, and income needs all affect the math, but the general principle holds: delay the bigger benefit as long as you reasonably can.

For married couples, delaying the higher earner’s benefit to 70 doesn’t just increase your income. It increases the survivor benefit too, which moves the household break-even point several years earlier than the individual calculation suggests.

The one caveat worth knowing

This strategy assumes you’re in reasonable health and expect to live into your 80s. If you have significant health concerns or a family history of shorter lifespans, claiming earlier may genuinely make more sense. The math is only as good as the longevity assumption behind it.

It’s also worth knowing that if you claim Social Security before your full retirement age and are still working, your benefit can be temporarily reduced if you earn above a certain threshold. Once you reach full retirement age that restriction disappears entirely. 

Your next step takes five minutes

Log in to ssa.gov/myaccount and pull up your statement. Look at your estimated benefit at 62, 67, and 70. Write down the gap.

That number is your starting point. Once you see it, the timing decision stops being something you’ll figure out later and starts being something you can actually plan around.

Most people make the Social Security timing decision without ever seeing the full picture. Your statement is free, takes five minutes, and could be worth more than anything else you do this week.

This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial professional for guidance specific to your situation.