For many Americans, Social Security is a major piece of the retirement puzzle. While most people know they can start claiming benefits at age 62, there’s a lot more to consider when deciding when to start.
It’s Not Just About Age
Yes, you can begin collecting Social Security at 62, and if you wait until 70, you’ll receive the maximum monthly amount. But it’s not always better to wait.
If you need the money to cover your basic living expenses or avoid dipping into your retirement savings during a down market, claiming early might actually work in your favor. Social Security is designed to even out your lifetime benefits whether you start early or wait. The earlier you start, the smaller your monthly check—but you’ll receive it for more years. The later you start, the bigger your check—but for fewer years.
So, timing should depend on your personal situation—not just the calendar.
The Real Milestone: 35 Years of Work
While age gets most of the attention, there’s another key milestone you shouldn’t overlook: the number of years you’ve worked and paid into the system.
Social Security calculates your benefit based on your average wages from your 35 highest-earning years. If you haven’t worked for 35 years, the system fills in the missing years with zeroes. That can bring down your average earnings significantly—and shrink your benefit check.
For example, if you’ve worked only 20 years, your income from those years will still be divided by 35, not 20. That means 15 years of $0 income are factored in, which lowers your overall average and your benefit amount.
If you’re still working and haven’t hit that 35-year mark, it might be worth holding off on claiming Social Security until you do. Every additional year of earnings can replace a zero or a lower-income year, potentially boosting your future benefits.
Get the Full Picture
If you’re planning your retirement or just want to know where you stand, check your Social Security statement. You can view estimates of your monthly benefits at different claiming ages and also review your full earnings history. It’s a helpful tool to figure out the best time to claim based on your unique situation.
While claiming at age 62 is an option—and sometimes the right one—the real milestone to pay attention to is having 35 years of work history. Reaching that point can make a big difference in the amount you receive each month.
So before you file, take a closer look at your earnings record. It could be the key to a more secure retirement.
