Key Points
At age 60, you’re not yet eligible to claim Social Security retirement benefits, but you’ve likely begun considering when you plan to sign up. You may already have a claiming age in mind, or you might still be undecided. That’s perfectly normal.
In either case, it helps to understand the following three things now, so you can make sure you’re choosing the optimal claiming age for you.
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How Your Claiming Age Affects Your Benefits
You can claim Social Security benefits as early as age 62, but to receive the full benefit amount earned through your work history, you must wait until reaching your full retirement age (FRA)—currently 67 for most people. Claiming benefits before your FRA reduces your monthly payments by up to 30%, and this reduction is typically permanent.
For every month you delay applying beyond your FRA, your benefits increase slightly, reaching their maximum at age 70. The ideal claiming age depends on your financial situation and life expectancy. You might need to sign up earlier if you lack other income sources to cover expenses. Conversely, if you have a shorter life expectancy, claiming earlier could maximize your total lifetime benefits.
If you can afford to wait and expect an average or above-average lifespan, delaying your application could result in larger lifetime benefits.
When You Become Eligible to Apply
If you hope to sign up as soon as you’re eligible at age 62, be aware that you likely won’t receive benefits for your birth month. You can only claim benefits for months in which you’ve reached age 62, and the Social Security Administration only considers you 62 for your birth month if you were born on the 1st or 2nd. If your birthday falls on any other date, you’ll need to wait until the following month to begin receiving payments.
Additionally, benefit payments are issued for the month after they’re earned, sometimes not until the fourth Wednesday. This means your first payment may arrive significantly after your 62nd birthday. Plan accordingly and ensure you have sufficient funds to cover your expenses during this gap.
How Continuing to Work Affects Your Benefits
The Social Security benefit formula in effect when you turn 60 is the one used to calculate your benefits. Continuing to work beyond this milestone often works in your favor, particularly if you’re currently earning more than in previous years.
Your benefit is based on your average monthly earnings over your 35 highest-earning years. Continuing to work can replace lower-earning years in your benefit calculation, resulting in larger monthly payments.
If you have specific questions about how your work history or claiming age affects your benefits, contact the Social Security Administration. You can reach them by phone or schedule an appointment at your local Social Security office.