There isn’t a one-size-fits-all answer when deciding when to switch on your social security benefits. There are several factors that can affect the amount that you receive, all of which must be considered.
To be eligible for Social Security, you must be 62 or older and have worked and paid social security taxes for 10 or more years. The amount you receive ultimately depends on your earning history, your age, and the year you retire.
To receive a full, unreduced benefit you must wait until your Full Retirement Age (“FRA”). Currently, the FRA is 67 years old for anyone born in 1960 or later. For those born before 1960, the FRA is slightly lower. For example, if you were born in 1959, your FRA would be 66 & 10 months.
If you need further clarity on your FRA, you can use this “retirement age calculator” provided by ssa.gov: Benefits Planner: Retirement | Retirement Age Calculator | SSA
What happens if you take your Social Security earlier than your FRA?
If you decide to take your benefit early, your payment will be reduced by 5/9 of 1% each month before FRA. If you are further than 36 months out, then it is decreased by 5/12 of 1% each month. For example, assuming your FRA is 67, taking your Social Security at age 62 (60 months early) would result in 70% of the FRA benefit.
What happens if you take your Social Security later than FRA?
If you delay your Social Security payments past your FRA, you receive “Delayed Retirement Credits.” Your benefit is increased by 8% every year you delay past your FRA. For example, assuming your FRA is 67 and you delay your benefit until age 70, you would receive 124% of the benefit you would have received at age 67. This does max out at age 70, meaning you shouldn’t postpone taking your Social Security past age 70.
Can your benefit change after you have started?
It’s important to remember that if you begin taking Social Security before your FRA, your benefit is permanent unless you withdraw in the first 12 months and pay back any benefits you have received. This would be treated the same as if you had never taken them. Once you reach your FRA, you have the option to suspend your payments. This allows you to temporarily stop receiving payments and earn delayed retirement credits. The credit is the same as above, an 8% increase up to age 70. Your payments would automatically begin again at age 70 unless you choose to restart earlier.
Aside from the methods listed above, you can’t change your Social Security benefit once you have begun taking it. However, your benefit amount, regardless of when you take it, is adjusted for inflation. This is adjusted annually by comparing the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) in the third quarter of the current year. In 2026 the inflation adjustment for Social Security was 2.8%.
Other factors to consider:
Your life expectancy is a major factor. The longer you expect to live, the more sense it makes to delay your Social Security. The break-even point for taking your benefit at age 62 vs. age 67 is typically in your late 70s and the break-even point for taking your benefit at age 67 vs. age 70 is typically your early 80s. This means that if you are in good health and have sufficient assets, it makes sense to push Social Security out until age 70.
What you earn can also temporarily decrease your benefit. If you are under FRA for the entire year, your Social Security benefit will be deducted $1 for every $2 you earn above the annual earnings limit of $24,480. Once you are in the year of FRA, this decreases to $1 for every $3 you earn above a higher limit of $65,160. The month you hit your FRA, your benefit will no longer be reduced regardless of earnings.
It’s also important to consider that Social Security can be taxed based on your income, filing status, & where you live.
To see a sample Social Security statement, or to create your account to project monthly benefits, you can visit the following link on the SSA.Gov website: Get Your Social Security Statement | my Social Security | SSA
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