Did you know that millions of Americans are losing out on thousands of dollars in Social Security benefits simply because they claim too early? A shocking 2025 AARP survey reveals that most people don’t understand the optimal age to start collecting—costing them a fortune in retirement income. Here’s what you need to know to avoid this costly mistake.
Why Timing Your Social Security Benefits Matters
Social Security benefits are designed to provide financial stability in retirement, but claiming them at the wrong age can drastically reduce your lifetime income. Here’s what the data shows:
- Earliest Claiming Age: 62, but benefits are reduced by up to 30%.
- Full Retirement Age: 67 for those born in 1960 or later.
- Maximum Benefits Age: 70, with delayed credits increasing payments by 8% per year.
The High Cost of Claiming Social Security Too Early
Many retirees unknowingly lock in permanently reduced payments by claiming benefits before age 70. Consider this example:
| Claiming Age | Monthly Benefit | Total Lifetime Income (20 years) |
|---|---|---|
| 65 | $1,560 | $374,400 |
| 70 | $2,232 | $401,760 |
Waiting just five years could mean an extra $27,360—or even $100,000+ if you live past 85.
Why Do So Many Americans Misunderstand Social Security?
The AARP survey highlights a critical knowledge gap:
- Only 24% know the earliest claiming age is 62.
- Just 19% realize benefits max out at 70.
- 66% of older adults don’t know the best age to claim.
Many fear future benefit cuts, but experts warn that early claiming often backfires.
How to Maximize Your Social Security Benefits
Follow these steps to secure your retirement income:
- Delay Until 70: If possible, wait to maximize monthly payments.
- Use SSA Tools: Estimate benefits with the Social Security Administration’s calculators.
- Consult a Financial Advisor: Personalized planning can optimize spousal and survivor benefits.
FAQs: Social Security Benefits Explained
1. What’s the earliest age I can claim Social Security?
You can start at 62, but benefits will be reduced by up to 30%.
2. When do Social Security benefits max out?
Payments stop increasing at age 70, so delaying beyond that offers no additional benefit.
3. How much could I lose by claiming early?
Depending on lifespan, early claiming could cost $50,000 to $100,000 or more.
4. Should I worry about Social Security running out?
While future cuts are possible, experts still recommend delaying benefits to maximize income.
