Trade-offs in Social Security claiming strategies highlight risks for retirees

A financial analysis suggests that while delaying Social Security benefits until age 70 maximises monthly payments, some retirees may benefit from claiming at age 62. The decision involves weighing the risk of outliving savings against the risk of health challenges limiting the enjoyment of a maximised income stream.

For individuals born in 1960 or later, filing at age 62 results in a permanent 30% reduction in benefits compared to the full retirement age of 67. Data from December 2025 shows average monthly benefits of approximately $1,424 at age 62 versus $2,275 at age 70. This difference represents a gap of roughly $850 per month between the two claiming ages.

A 2019 United Income study indicates that 57% of retirees could earn more lifetime income by waiting until 70, with an average household potentially forgoing $111,000 by filing early. However, the article notes that claiming early can provide necessary cash flow if longevity is uncertain or if savings are depleted.

Waiting to file for Social Security essentially involves betting on your longevity. Retirees not only need to be healthy enough to continue working until age 70 but will also ideally need to stay healthy long enough to spend ample time in retirement after leaving their career.

If a retiree files early and runs out of savings later in life, they might have to survive on those smaller checks for the rest of their retirement. Conversely, if they delay until 70 and then immediately face health challenges, they might not have much retirement left to enjoy the increased payments.

The specific financial impact varies entirely based on individual circumstances, including current savings levels, health status, and life expectancy. There is no single best age to take Social Security, as it depends entirely on a person's unique situation and risk tolerance regarding outliving savings.