Half of Retirees Claim Social Security Before Full Retirement Age.
Only 4% Wait for the Biggest Check
Quick Read – Half of retirees claim Social Security before full retirement age, while only 4% wait until 70 for the largest possible monthly check. – Claiming at 62 cuts monthly benefits by up to 30%, while delaying past full retirement age to 70 boosts checks by 8% annually. – With savings rates at 2.8% and consumer sentiment near recessionary lows, most retirees cannot afford to delay claiming regardless of the math. – Roughly half of American retirees claim Social Security benefits before reaching full retirement age, while only about 4% wait until age 70 to secure the largest possible monthly check. That split has persisted for years, even though financial planning advice has pointed in the opposite direction for decades. Look at the claiming-behavior numbers alongside today’s household finances, and it becomes clearer why the theoretically optimal move is also the one people make least often.
The Mechanics Behind the Claiming Decision Social Security allows workers to begin drawing benefits as early as age 62, but each year of early claiming reduces the monthly payment. According to the Stanford Institute for Economic Policy Research, benefits are reduced by about 6.7% for each year a person claims before the full retirement age, which currently stands at 67 for most workers approaching retirement. Claiming at 62 can shrink the monthly check by up to 30% relative to the full retirement age amount.