Social Security, the safety net upon which many retirees depend on to live during retirement is a complex program, with many peculiarities that can make navigating it challenging. The first thing potential beneficiaries need to be clear on is, when is the best time to claim benefits?

The answer is as varied as the people who ask it, as everyone’s circumstances are different and need to be taken into account before making the decision.

When to claim social Security benefits

The first question you should ask yourself before beginning this elimination process is whether you will depend on benefits when you retire or not. The second one is what does retirement mean to you, and the third one is why do you anticipate retiring.

If you plan on depending on your benefits when you retire, it stands to reason that you should want to wait to get the maximum possible payment. Since benefits are calculated based on your working history, you will likely want to have at least 35 years of employment history and with as high a salary as possible.

Depending on what retirement means to you, you may be able to make it happen sooner or later. If you are a salaried employee who sees retirement as ceasing all work, you may need more years than you would like, but if you have passive income and a side gig as a part time consultant that brings enough money to get by, your retirement may look different and may come sooner.

Reasons to retire also play a role. If you anticipate retiring because of medical concerns, transitioning into a less demanding job or a temporary better paying job to build up savings looks different than retiring because of grandkids, family obligations, no need to keep working or just old age. All those scenarios will require different planning and decision making to ensure a comfortable retirement.

With all of that in mind, there are three typical ages at which workers may decide to retire. Of course they may decide to stop working at any point, but that does not mean that they will get to claim benefits. The earliest a worker gets to retire and claim benefits is 62 years of age. To be able to do that, they must have at least worked for ten years of taxable income. This amount will not be enough for someone to live on, but it is the minimum amount the government will provide. If you have worked for the maximum 35 years collecting the highest taxable income, the maximum amount in benefits you will be able to get at age 62 in 2024 is $2,710.

The next age people start claiming benefits is 65 years old. At this age, which is considered by most the original retirement age, Medicare benefits kick in, which means that heath insurance costs go down and it is a good age to stop working, but the maximum amount you can get at this age is $3,426, which is better, but when every dollar counts, waiting until your full retirement age (as of now it is 66 and a few months depending on your date of birth) can add a few extra dollars with little effort. The highest Social Security payment at full retirement age is $3,822.

However, despite popular belief, this is not the end of the road, there is an extra age at which retirees can get an even bigger payment. That is those who can wait to claim benefits until age 70. The maximum payment at age 70, the eldest you can be without claiming benefits, is $4,873, which is a significant jump in payments that those who can should wait to receive.

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