This 1-Hour Task Could Add $100K to Your Retirement (Most People Skip It)
About 52% of retired-worker benefits awarded in 2024 were reduced for early retirement, according to the Social Security Administration's 2025 Annual Statistical Supplement.
"Most people just turn this thing on or flip it on at 62 because they're nervous or scared that it's gonna go away," said Michael Dunlop, a certified financial planner (CFP) and co-founder of Ignite Financial.
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When asked what task a pre-retiree could finish in about an hour that could have one of the biggest long-term financial impacts, two financial advisers gave the same answer: Audit your Social Security Statement before deciding when to claim.
Start With Your Statement
Sign in to your my Social Security account and review your earnings history. Social Security generally bases your retirement benefit on your 35 highest-earning years. If a missing or understated year would fall within those 35 years, it could reduce your monthly benefit.
Next, look at the personalized retirement estimates in your Social Security statement. It shows what you may receive each month if you claim at each age from 62 through 70.
Write down the estimates at age 62, your full retirement age and age 70. Full retirement age depends on your birth year. It is 67 for people born in 1960 or later, according to the Social Security Administration.
“Some pre-retirees make a quick assumption that they will take Social Security at age 62 and they don't spend enough time thinking it through,” said Chad Gammon, a CFP and owner of Custom Fit Financial. “They will have reduced benefits for life and it might make a difference for their retirement.”
Do the Math on Waiting
Your Social Security statement shows the estimated monthly benefit at each claiming age. It does not tell you how long you would need to collect the larger benefit before waiting pays off.
Claiming at 62 gives you more years of payments, but each check is smaller. Waiting until 70 means collecting nothing in the meantime in exchange for a larger monthly benefit later. The break-even age is the point when the higher payments make up for the checks you skipped.
Christopher Walsh, senior advisor and regional director at Capital Choice Arizona, ran the numbers using a $2,000 monthly benefit at a full retirement age of 67. Claiming at 62 would cut the benefit by 30%, to $1,400 per month. Waiting until 70 would increase it by 24%, to $2,480.
Waiting from 62 to 70 means skipping 96 monthly payments. At $1,400 per month, the total comes to $134,400.
The benefit at 70 is $1,080 more per month. Recovering the skipped payments would take about 124 months, putting the break-even age around 80.
By age 90, the person who claimed at 70 would have received $124,800 more than someone who claimed at 62. Someone who died at 78 would have received more by claiming early.
What the Numbers Can't Tell You
Waiting pays off only if you live long enough to reach the break-even age.
Walsh said he looks at a client’s health and family history before recommending a claiming age. If a client’s parents lived into their 80s or longer, he often recommends waiting. If they died in their 70s, he may suggest claiming at full retirement age. Someone already dealing with serious health problems may have more reason to claim earlier.
"There is no perfect selection because nobody has a crystal ball on the perfect time to collect Social Security," Walsh said.
Waiting also requires enough income or savings to cover the years without Social Security. A larger payment at 70 may not be worth much if getting there forces you to drain money needed for housing, health care and other expenses.
Married couples should review both statements before deciding. Delaying the higher earner’s benefit may increase the survivor benefit available to the spouse who lives longer, Dunlop said.
An hour cannot guarantee an extra $100,000. It can show you what each option may cost before you file.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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