After decades of paying into the Social Security system, many retirees are eager to start collecting that monthly check as soon as possible. But that can be a costly mistake.
While you’re allowed to start claiming Social Security benefits at age 62, holding off for several years can add thousands of dollars to your payments over a lifetime. That’s because you don’t qualify for all of your earned benefits until you reach “full retirement age,” which is 66 for most Baby Boomers and 67 for those born in 1960 or later.
So checks claimed at age 62 are about 25% smaller than if you wait until your full retirement age. And if you wait even longer, your annual benefits will grow by another 8% for each year you wait up to age 70.