When to claim Social Security — and how to build the rest of your retirement income

Deciding when to claim Social Security is a major factor in your retirement strategy. Data from the Schroders 2025 U.S. Retirement Survey indicates that 44% of non-retirees plan to file before their full retirement age of 67. While taking benefits early provides immediate liquidity, it permanently reduces the monthly payout.

Claiming at age 62 results in a smaller check compared to waiting for your full retirement age. For example, if your full retirement age is 67, filing at 62 leaves you with roughly 70% of the benefit amount. Conversely, waiting until age 70 maximizes your payout, as the government provides an additional 8% for each year you delay beyond your full retirement age.

Factors such as your health, life expectancy, and current employment status play a role in this calculation. Many individuals also evaluate their break-even point, which is the age at which total lifetime benefits from waiting exceed the total amount collected from filing early. For most people, this point occurs between age 78 and 82.

Because average Social Security benefits often fall short of total retirement needs, financial experts emphasize the importance of other income streams. Utilizing tax-advantaged accounts like a 401(k), traditional IRA, or Roth IRA can provide necessary income. Automated solutions such as robo-advisors offer a way to manage portfolios if you prefer a hands-off approach to long-term saving.