When to Claim Social Security: The Optimal Strategy for 2026

The $250,000 Decision You Can't Afford to Get Wrong

When to claim Social Security is one of the biggest financial decisions you'll make in retirement. The difference between claiming at 62 versus 70 can mean $250,000 or more in lifetime benefits.

Yet most people get this wrong. In 2024, only about 4% of Americans waited until age 70 to claim—despite research showing it's optimal for the majority of retirees.

2026 Social Security Changes You Need to Know

Full Retirement Age (FRA) Reaches 67

Big news for 2026: The full retirement age is completing its final scheduled increase. If you were born in 1960 or later, your FRA is now 67 years old.

This matters because: - Claiming before 67 permanently reduces your benefit - Claiming at 62 now means a 30% reduction (not 25% like it used to be) - Claiming at 70 still gives you a 24% bonus above your FRA benefit

2026 COLA Increase: 2.8%

Social Security benefits are increasing by 2.8% in 2026. The average monthly benefit rises from $2,015 to $2,071.

New Earnings Limits

If you claim Social Security while still working: - Under FRA all year: $24,480 limit (lose $1 for every $2 over) - Year you reach FRA: $65,160 limit (lose $1 for every $3 over) - After FRA: No limit

Your Three Claiming Options Compared

Based on 2026 average benefit at FRA *Assumes living to age 85

When to Claim at 62 (Early)

Claiming at 62 makes sense if you:

1. Have Health Concerns If your life expectancy is shorter than average, early claiming may maximize total lifetime benefits. The "break-even" point between claiming at 62 vs. 70 is approximately age **80-82**.

2. Desperately Need the Income If you have no savings and can't work, early claiming beats going into debt or not meeting basic needs.

3. Are the Lower-Earning Spouse In married couples, it often makes sense for the lower earner to claim early while the higher earner delays. This provides income now while maximizing the survivor benefit later.

4. Can Invest the Benefits If you'd invest every dollar of early benefits and earn strong returns, you might come out ahead. But most people spend the money instead.

The math on early claiming: - 30% permanent reduction - Must earn ~7%+ annually on invested benefits to break even - If you spend it, you lose

When to Wait Until 70 (Optimal for Most)

Research consistently shows age 70 is the best claiming age for the majority of retirees. Here's why:

1. Guaranteed 8% Annual Return

For every year you delay past FRA, your benefit increases by approximately 8%. Where else can you get a guaranteed 8% return with no risk?

• Delay 1 year (67→68): +8%
• Delay 2 years (67→69): +16%
• Delay 3 years (67→70): +24%

2. Inflation-Protected for Life

Social Security benefits receive annual COLA increases. A higher base benefit means larger dollar increases from COLA every year.

Example over 20 years: - Claim at 62: $1,450 base → ~$2,100 after COLA - Claim at 70: $2,568 base → ~$3,700 after COLA

3. Spousal and Survivor Benefits

If you're married, your claiming decision affects your spouse. The higher earner's benefit becomes the survivor benefit when one spouse dies. Delaying maximizes this protection.

4. Longevity Insurance

Americans are living longer than ever. A 65-year-old today has a: - 25% chance of living to 90 - 10% chance of living to 95

The longer you live, the more valuable delayed claiming becomes.

The Spousal Strategy: Maximize as a Couple

For married couples, Social Security planning is a team sport.

Option 1: Both Delay to 70 Maximizes total lifetime benefits if both spouses live long lives. Best for healthy couples with adequate savings.

Option 2: Lower Earner Claims Early, Higher Earner Delays The lower earner claims at 62-67 for current income. The higher earner waits until 70 to maximize the survivor benefit.

Why this works: - Provides income during the "gap years" - Maximizes the benefit that will last longest (survivor benefit) - Good balance of current income and long-term security

Option 3: Higher Earner Claims at FRA A middle-ground approach. Gets benefits flowing while still maximizing survivor benefit somewhat.

Spousal Benefit Rules

• Must be married at least 1 year
• Can claim up to 50% of spouse's FRA benefit
• Claiming early reduces spousal benefit too
• Ex-spouses may be eligible (10+ year marriage, currently unmarried)

Common Mistakes to Avoid

Mistake #1: "I Want to Get My Money Back"

Many people claim early because they "paid into the system" and want to recoup their contributions. But Social Security isn't a savings account—it's longevity insurance.

The point isn't to "get your money back." It's to protect against outliving your savings.

Mistake #2: Ignoring Taxes

Up to 85% of Social Security benefits can be taxable. Early claiming while still working often means: - Benefits get taxed at high marginal rates - Earnings limit reduces benefits further - You lose twice

Mistake #3: Not Considering Your Spouse

Individual optimization isn't the goal—household optimization is. The best strategy for you alone may not be best for your family.

Mistake #4: Assuming You'll Die Young

Most people underestimate their longevity. Unless you have specific health concerns, plan for a long life.

How to Calculate Your Break-Even Age

The break-even age is when total benefits from waiting equal total benefits from claiming early.

Simplified calculation:

Claim at 62: $1,450/month × months from 62 Claim at 70: $2,568/month × months from 70

Break-even occurs around age 80-82 for most people.

Key insight: If you live past break-even, delaying wins. About 60% of 62-year-olds will live past 82.

The Optimal Strategy by Situation

Single, Good Health **Claim at 70.** Maximum benefit, maximum longevity protection.

Single, Health Concerns **Claim at 62-67.** Run the break-even calculation based on your health situation.

Married, Similar Earnings **Both delay to 70 if possible.** Or have lower earner claim at 67 while higher earner waits.

Married, One Much Higher Earner **Higher earner delays to 70, lower earner claims at 62-67.** Protects survivor benefit while providing current income.

Need the Income Now **Claim when you need it.** Social Security exists to provide income. Don't go into debt to delay claiming.

Still Working Full-Time **Wait at least until FRA.** Earnings limit reduces benefits, and you're probably in a higher tax bracket.

2026 Action Steps

If You're Turning 62 in 2026 Don't claim automatically. Run the numbers first. Can you afford to wait? Every year of delay is worth ~8%.

If You're Turning 67 in 2026 (FRA) This is a key decision point. You can now claim full benefits OR continue waiting for delayed credits.

If You're Turning 70 in 2026 Claim now. Benefits don't increase past 70, so there's no reason to wait longer.

If You're Still Working Consider delaying Social Security and living off earnings. Your benefit grows while your savings stay invested.

Medicare vs. Social Security: Important Distinction

Medicare eligibility: Age 65 (hasn't changed) Social Security FRA: Age 67 (new in 2026)

You can (and should) enroll in Medicare at 65 even if you delay Social Security. Late Medicare enrollment carries permanent penalties.

The Bottom Line

For most people, delaying Social Security until 70 is the optimal strategy. It's a guaranteed 24% increase on your FRA benefit, with inflation protection for life.

But optimal isn't always possible. If you need the income or have health concerns, claiming earlier makes sense.

The key is making an informed decision, not just defaulting to the earliest possible date.

Use our [Retirement Calculator](/) to see how Social Security fits into your overall retirement plan, and model different claiming ages to find your optimal strategy.

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This information is for educational purposes only and not financial advice. Social Security rules are complex—consider consulting a financial advisor or visiting SSA.gov for personalized guidance.