Taking Social Security at age 62 delivers $2,969 per month, while waiting until age 70 provides $5,181 per month. That larger check compounds over time through inflation adjustments.
Some people claim early because they want to invest the proceeds or spend the money now. But this strategy has drawbacks. Financial markets are volatile, and older investors have less time to recover from downturns before they need the funds. Starting with a smaller benefit also means lower inflation adjustments each year, even if the percentage increase is identical.
The long-term math favors waiting if you can afford to. Social Security calculates your benefit using your 35 highest-earning years. Working longer, especially if you earn more now than earlier in your career, can replace lower-earning years with higher ones and boost your final benefit amount.
Working a few more years, drawing from other retirement savings, or reducing housing costs can bridge the gap until age 70. The report acknowledges that claiming at 62 may be necessary for some people based on individual circumstances and a spouse's benefit options. But for many, the larger monthly payment provides better long-term financial stability than rushing to claim smaller checks early.