Deciding when to claim Social Security benefits is one of the most consequential retirement choices Americans make. Claim too early, and you lock in smaller monthly checks for life. Wait longer, and your benefit can grow substantially — but that requires patience and other income to bridge the gap.
With millions of retirees facing this decision in 2026, understanding the trade-offs matters more than ever.
Average Social Security benefit in 2026
As of January 2026, over 70 million people receive Social Security benefits, including about 53.8 million retired workers, according to the Social Security Administration.
At the same time, as of January 2026, the average monthly Social Security benefit for retired workers is $2,071.
However, a retiree’s benefit amount depends heavily on earnings history and claiming age. Whether you claim at age 62, wait until full retirement age (FRA) at age 67, or delay until age 70 can significantly change what that average looks like for you.
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Claiming at age 62 reduces benefit by 30%
The earliest age to claim retirement benefits is 62, but doing so comes with a permanent reduction. For workers whose FRA is 67, claiming at 62 results in benefits that are about 30% lower than if they had waited. This reduction reflects the longer period over which benefits are expected to be paid.
Using the 2026 average benefit of $2,071 as a baseline figure, a 30% reduction would lower the monthly check to roughly $1,450. That is a difference of about $621 per month. Over a full year, that reduction adds up to more than $7,400 in lost income.
Claiming at age 70 means a 24% larger benefit
Delaying Social Security past FRA can significantly increase monthly payments. For each year you wait beyond age 67, benefits grow by about 8%, up until age 70. Over three years, that results in a total increase of roughly 24%.
Applying that increase to the average $2,071 benefit raises the monthly payment to about $2,568 at age 70. Compared with claiming at 62, the difference is striking. The gap between $1,450 and $2,568 is approximately $1,118 per month, or more than $13,400 per year.
What retirees lose by claiming at 62 instead of 70
The difference between claiming at 62 and waiting until 70 is not just a short-term issue — it lasts for life. Over a 20-year retirement, a $1,118 monthly gap can translate into more than $268,000 in total benefits. That does not include additional cost-of-living adjustments, which also compound off the higher base benefit.
This gap helps explain why financial planners often caution against early claiming if it is financially feasible to wait. Higher guaranteed income later in life can also protect against longevity risk, rising health care costs, and inflation.
When claiming benefits early makes sense
Despite the clear financial advantage of waiting, claiming at 62 can still be the right choice for some retirees. For example, health concerns, shorter life expectancy, or the immediate need for income may outweigh the benefit of larger checks later. Others may prefer earlier income to reduce reliance on savings or avoid withdrawing heavily from retirement accounts.
Employment status also matters. If continuing to work is not realistic, early benefits may provide the necessary cash flow. The key is that early claiming is not inherently wrong — it simply trades long-term income for earlier access to benefits.
Ways to boost your Social Security benefit
While claiming age plays the biggest role, retirees still have some levers they can pull to increase benefits. Small adjustments earlier in life or before claiming can have lasting effects. Understanding these options can help maximize lifetime income.
Delay claiming benefits
Waiting longer to claim is the most straightforward way to increase monthly payments. Each year of delay past FRA raises benefits by about 8%. Even delaying for one or two years can meaningfully improve long-term income.
Work for at least 10 years
To qualify for Social Security retirement benefits at all, workers need at least 40 credits, which typically equals about 10 years of work. Without meeting this threshold, no retirement benefit is available. For those close to qualifying, additional work years can unlock benefits entirely.
Work for more years before retiring
Social Security calculates benefits using your highest 35 years of earnings. Continuing to work allows higher-earning years to replace lower-earning or zero-income years in that formula. Over time, this can noticeably raise your eventual monthly check.
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Bottom line
Claiming Social Security at 62 instead of 70 can reduce monthly income by more than $1,100 based on average benefits in 2026, and that difference compounds over decades. While waiting is not realistic for everyone, understanding the trade-offs helps retirees make more confident decisions.
Evaluating health, savings, and income needs together can help you choose a claiming strategy that supports long-term security and helps set yourself up for retirement.
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Author Details
Adam Palasciano
Adam Palasciano is a writer for FinanceBuzz and a personal finance-obsessed and money-savvy individual who loves to hash out content on all things saving money. He specializes in writing millennial-friendly personal finance content, covering topics ranging from trending financial news, debt, credit cards, cryptocurrency, and more.
