Social Security can provide a quick financial cushion, but the temporary benefits of claiming 62 can leave a lot of money on the table by the time you turn 70.
The decision of when to claim Social Security should come down to your specific situation, such as other types of income, savings, whether you plan to continue working for a while and whether you have credit. But for most married couples, it makes sense for at least one spouse to delay receiving their benefits. Here is the reason.
How waiting increases your benefits
You are eligible to receive Social Security as soon as you turn 62. But doing so limits your maximum benefits, including survivor benefits your future spouse may receive. Your income is based on how much you’ve earned throughout your life and when you retire – and the later you apply, the higher your benefit will be.
In 2026, the highest benefit you can get if you claim Social Security at 62 is $2,969 a month, and that’s your highest income. But if you wait until you reach full retirement age, 66 or 67, the maximum benefit would be $4,152 per month. If you wait until you’re 70, it’s $5,181 a month.
If both spouses claim their benefits early, they reduce their monthly take-home pay. This is usually not refundable if you have been receiving Social Security checks for more than a year. (You can withdraw within a year but you will have to pay back your benefits; after that you can only stop your benefits.)
Dollars are left on the table
Consider the best case scenario where both spouses qualify for the maximum benefit. If they contact Social Security at age 62, they will receive a total of $5,938 per month. Waiting until full retirement age produces $8,304 per month in combined benefits, while waiting until age 70 produces $10,362 per month. In short, couples can earn thousands of dollars a month in extra income by waiting just a little longer to receive Social Security.
Before you can apply for Social Security, you must create an account on the Social Security website and calculate your personal benefit estimates when you turn 62, reach full retirement age and turn 70. That way, you know your exact numbers and how much money you’ll be leaving on the table when you withdraw Social Security when you first become eligible.
If you apply at 62 it would make sense
Everyone’s situation is different and for some couples, it may make sense to apply at age 62. For example, some couples use what’s called a “split strategy” where the lower-earning spouse files before the higher-earning spouse so that the higher-earning spouse can lock in higher benefits while the couple lives off the lower-earning spouse’s benefits. Of course, sometimes you may not have a choice. People with health problems, little savings, a recent layoff or an urgent need for cash flow may need to claim benefits as soon as possible.
Plan your Social Security strategy. If both spouses go to the Social Security website and see their benefits calculated based on where they claim benefits, they can strategically consider what makes the most sense for them.
