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Understanding Full Retirement Age (FRA)

Social Security benefits are based on when you choose to claim them. The Full Retirement Age (FRA) is the age when you can receive your full Social Security retirement benefit without any reductions for early claims or bonuses for delayed claims.

Your FRA depends on your birth year:

Understanding FRA is essential because claiming benefits before FRA results in a permanent reduction in monthly benefits, while delaying beyond FRA increases your benefits through delayed retirement credits. Your FRA also affects spousal and survivor benefits, which could be an essential factor in your decision-making process.

Some individuals may choose to claim early due to personal circumstances, such as financial necessity, health concerns, or job loss. Others may delay in order to increase their monthly benefit, ensuring a higher lifetime income if they live longer.

Claiming Social Security at 62: Pros & Cons

The earliest age you can begin receiving Social Security benefits is 62, but claiming early comes with a trade-off—your monthly payments will be permanently reduced. For many retirees, this decision depends on their immediate financial needs, health status, and overall retirement strategy.

Pros of Claiming at 62

• Immediate access to income – This can be beneficial for those facing job loss, unexpected health expenses, or other financial challenges.
• More total payments over time – While each check is smaller, claiming early results in more years of benefits, assuming an average lifespan.
• Better for those with health concerns – Collecting benefits sooner may provide a better financial outcome if you have a shorter life expectancy due to medical conditions.
• Preserves personal savings – Taking Social Security early may allow you to withdraw less from other retirement accounts, potentially extending their longevity.

Cons of Claiming at 62

• Lower monthly benefits for life – Claiming at 62 can reduce benefits by up to 30% compared to waiting until full retirement age (FRA).
• Permanent reduction – Even after reaching FRA, your payments remain lower than if you had waited to claim.
• Earnings limit before FRA – Social Security may temporarily reduce your payments if you continue working while receiving benefits. In 2025, for instance, earning over $23,400 per year reduces benefits by $1 for every $2 earned above the limit for those younger than full retirement age.

Many retirees claim early out of financial necessity, but for those with other income sources, delaying benefits may result in higher monthly payments later in retirement.

Waiting Until Full Retirement Age (FRA): Pros & Cons

Full Retirement Age (FRA) allows you to claim Social Security and receive 100% of your earned benefits without reductions. Depending on your birth year, FRA falls between 66 and 67 (see the chart above). Deciding to wait until this milestone can have significant financial advantages, but it also requires careful planning to bridge the income gap before benefits begin.

Pros of Claiming at FRA

• Full, unreduced benefits – Unlike claiming early, waiting until FRA ensures you receive your complete Social Security benefit amount.
• No earnings penalty – If you plan to continue working part-time or full-time, you won’t face reductions due to the Social Security earnings limit.
• Stable, predictable income – Social Security provides a reliable monthly payment, which can be particularly valuable for budgeting in retirement.
• Greater flexibility in retirement planning – Claiming at FRA allows you to coordinate Social Security with other income sources, such as pensions or retirement accounts, without the reductions associated with early claiming.

Cons of Claiming at FRA

• Need for other income sources before FRA – Delaying benefits requires relying on savings, investments, or other retirement accounts to cover expenses in the meantime.
• Potentially fewer total years of payments – If you have a shorter life expectancy, waiting may result in fewer Social Security payments.

For many individuals, claiming at FRA strikes a balance between maximizing benefits and maintaining financial flexibility. Those who can afford to wait may benefit from larger monthly payments while still preserving other retirement assets.

Delaying Social Security Until 70: Pros & Cons

Waiting beyond Full Retirement Age (FRA) to claim Social Security can significantly increase your monthly benefits through delayed retirement credits, which add 8% per year until age 70. This strategy is particularly beneficial for individuals who expect a longer lifespan and can afford to delay benefits while relying on other income sources in the meantime.

Pros of Delaying Until 70

• Maximum monthly benefit – By waiting until age 70, you can receive up to 32% more per month than if you claimed at FRA, leading to significantly higher lifetime payouts.
• Advantageous for long life expectancy – If you anticipate a longer retirement, delaying benefits ensures greater cumulative earnings over time.
• Higher spousal and survivor benefits – Married couples can benefit from larger survivor payments.
• More tax-efficient retirement income planning – Delaying Social Security may allow for strategic withdrawals from other accounts, such as Roth conversions or tax-friendly distributions, before Required Minimum Distributions (RMDs) begin at age 73, or age 75, depending on your birth year.

Cons of Delaying Until 70

• Must rely on other income sources – You’ll need to fund your retirement expenses through personal savings, investments, or pensions until Social Security kicks in.
• Less beneficial for those with health concerns – If you have a shorter life expectancy, delaying may result in fewer total payments, reducing the advantage of larger monthly checks.
• Fewer total years of benefits – The longer you wait, the fewer payments you’ll receive overall, which could be a drawback if longevity is uncertain.

Delaying Social Security can be a valuable strategy for those in good health with sufficient financial resources to bridge the gap. It offers higher monthly income, greater survivor benefits, and flexibility in tax planning, making it an attractive option for long-term financial security.

Choosing When to Claim Social Security: Factors to Consider

Deciding when to claim Social Security is a highly personal choice—there’s no one-size-fits-all answer. Your unique circumstances, including health, income needs, and long-term goals, play a crucial role. Working with a financial planner can help you navigate the pros and cons of each option. 

Here are key factors to consider:

1. Health & Longevity

If you have a family history of longevity, delaying Social Security may lead to higher lifetime benefits. On the other hand, if you face serious health concerns, claiming early could be more advantageous by ensuring you receive benefits sooner.

2. Income Needs

Your immediate financial needs are a major consideration. Claiming early might be essential if Social Security is necessary to cover basic living expenses. However, if you have other income sources—such as pensions, savings, or investments—delaying may enhance your financial comfort later in life.

3. Spousal and Survivor Benefits

For married couples, strategic timing can better position their total household income. A higher-earning spouse who delays claiming can boost survivor benefits for their partner, ensuring greater financial support in the event of their passing.

4. Employment Status

If you plan to work during retirement, claiming Social Security before full retirement age (FRA) may lead to benefit reductions if your earnings exceed the annual limit. Waiting until FRA allows you to receive full benefits without penalties while continuing to work.

5. Tax Considerations

Depending on your total income, up to 85% of your Social Security benefits may be taxable. Delaying benefits may create opportunities for tax-efficient withdrawals from retirement accounts, such as 401(k)s or IRAs, helping you manage your taxable income strategically.

Ultimately, the decision of when to claim Social Security depends on your overall financial situation, health outlook, and long-term retirement goals. While early claiming offers immediate income, delaying benefits can result in higher monthly payments in your later years.

FAQs on Pros and Cons of Early vs. Delayed Retirement