Social Security & Retirement
Social Security is the largest source of retirement income for most Americans. When you claim, and how you factor it into your plan, can change your retirement by hundreds of thousands of dollars.
Last updated: Aug 2026
Quick answer
Social Security claiming age has a major impact on retirement income: claiming at 62 reduces benefits, while delaying to 70 increases them. Higher guaranteed income can reduce how much portfolio you need and lower withdrawal risk. The best age depends on health, longevity expectations and whether you can bridge with savings.
How benefits are calculated
- 1
Earnings history
SSA takes your highest 35 years of earnings (adjusted for wage inflation) and averages them into your Average Indexed Monthly Earnings (AIME).
- 2
Primary Insurance Amount (PIA)
Your AIME is run through a progressive formula with "bend points" that replace more of your first dollars of earnings and less at the top. The result is your PIA: your monthly benefit at Full Retirement Age.
- 3
Claiming age adjustment
Claim before FRA and your benefit is permanently reduced. Wait past FRA and it grows by 8% per year until age 70. The decision is permanent.
When to claim: 62 vs 67 vs 70
| Claiming age | Benefit vs FRA | Best if… |
|---|---|---|
| 62 | ~30% less | You need income now and have no other sources, or have a shorter life expectancy |
| 67 (FRA) | 100% | Balanced approach: full benefit, no penalty or bonus |
| 70 | ~24% more | You can bridge with savings and expect to live past ~82 (the typical break-even) |
Full Retirement Age depends on your birth year. For most people born after 1960, FRA is 67.
How it affects your retirement number
Social Security directly reduces how much your portfolio needs to fund. Example:
A $24,000/year Social Security benefit drops your required portfolio by $600,000. Delaying from 62 to 70 increases the benefit, and further reduces how much you need saved.
Important caveats
Benefits may be reduced in the future
As of February 2026, the Social Security trust fund is projected to face a shortfall. Congress will likely adjust benefits or taxes. We don't know exactly how. Planning with a 10-25% haircut is a conservative approach.
Benefits are partially taxable
Depending on your total income, up to 85% of Social Security can be taxed as federal income. This reduces the net amount you receive. Learn about taxes in retirement →
Spousal and survivor benefits
If you're married, claiming strategy gets more complex. A spouse can claim up to 50% of the higher earner's PIA. Coordination between two benefits can add tens of thousands in lifetime income.
Optimize your claiming age
RetireNumber models Social Security with current benefit formulas, full retirement age by birth year and early/delayed claiming adjustments. Compare claiming at 62, 67 and 70 side by side to see which maximizes lifetime income for your situation.
Model your Social SecurityNext step: model your claiming age
Start with the retirement number calculator, then simulate claiming at 62, 67 and 70 to compare retirement outcomes side by side.