Advisors' Corner

Deciding when to start collecting Social Security is one of the biggest financial choices you’ll make. Whether you take benefits early, at your full retirement age, or wait until age 70, the timing can make a big difference in your monthly income—and your long-term financial picture.

Here’s what to know before you decide.

Claiming Early: Age 62

You can start receiving Social Security as early as age 62, but it comes with a trade-off—your monthly benefit will be permanently reduced.

For anyone born in 1960 or later (full retirement age = 67), claiming at 62 means you’ll receive about 70% of your full benefit, a 30% lifetime reduction compared to waiting until your full retirement age.

Why some people still choose 62:

• They need income sooner.

• They have health concerns or a shorter life expectancy.

• They plan to stop working completely and want to supplement other savings.

Keep in mind: if you claim benefits before your full retirement age and continue working, your benefits may be temporarily reduced by the earnings test. However, once you reach your full retirement age, those withheld months are credited back, and your monthly benefit is adjusted upward.

Full Retirement Age (FRA): Around 67

Your Full Retirement Age (FRA) is when you qualify for 100% of your benefit.
For most people retiring today, that’s age 67 (for those born in 1960 or later).

Claiming at your FRA means no reduction for filing early—and no bonus for delaying.

Why FRA works for many:

• You get your full monthly amount.

• There’s no reduction for working or earning income.

• It often balances current needs with future benefits.

→ Check your exact FRA on SSA.gov

Waiting Pays: Age 70

If you delay collecting Social Security after your FRA, your benefit grows each year until age 70.
For anyone born in 1943 or later, your benefit increases by about 8% per year for each full year you wait beyond your FRA—up to a maximum at age 70.

For someone with an FRA of 67, that means at age 70 you’ll receive about 124% of your full benefit—a 24% increase for life.
After 70, there’s no additional boost, so that’s generally the latest it makes sense to wait.

Why wait?

• You’ll lock in the highest possible monthly benefit for life.

• You could increase survivor benefits for your spouse.

• It can help offset inflation and longer life expectancy.

No matter when you claim, your benefits are adjusted annually for inflation through the Cost-of-Living Adjustment (COLA)—helping your income keep pace with rising prices over time.

How the Numbers Compare

Example applies to individuals born in 1960 or later (FRA = 67). Your exact numbers depend on your earnings record.
→ Try the SSA Early & Late Retirement Calculator

Factors to Consider

Everyone’s situation is different. When deciding when to claim, think about:

• Health & Longevity: A longer life expectancy favors waiting.

• Income Needs: If you need funds now, early benefits may help.

• Employment: If you claim early while still working, benefits may be temporarily reduced but adjusted later.

• Spouse or Survivor Benefits: Waiting can increase what your spouse may receive in the future.

• Other Savings: IRA, TSP, or pension income can help bridge the gap if you delay claiming.

Planning Ahead

Before you decide when to claim, it can be helpful to review how Social Security fits into your larger retirement strategy.

For personalized guidance, schedule a complimentary consultation with Michael Schimmel, Senior Wealth Advisor with Fellows Financial Group, located at USSFCU.

Visit ussfcu.org/fas to schedule with Michael.

Bottom Line

There’s no one-size-fits-all answer for when to claim Social Security. The best choice depends on your health, your finances, and your goals. Taking time to plan now can help you make the most of your benefits later.

Educational content only; USSFCU does not provide legal or tax advice. Consult a qualified professional for your situation.