Retiring in 2026? The Difference Between Early and Full Social Security Is Here
Retiring from work and claiming Social Security do not have to happen at the same time.
You can start collecting at 62, but your monthly benefit could be up to 30% smaller than if you wait until full retirement age. In return, you receive several additional years of checks. The better option on when to begin collecting your Social Security benefit depends on what those years of income are worth to you.
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How Much Does Claiming Early Cost?
Full retirement age is 66 years and 10 months for people born in 1959 and 67 for anyone born in 1960 or later, according to the Social Security Administration.
Consider someone entitled to $2,000 per month at 67. Depending on when they claim, they would receive:
At 62: $1,400 per month or $16,800 per year
At 67: $2,000 per month or $24,000 per year
At 70: $2,480 per month or $29,760 per year
Claiming at 62 would mean $600 less per month compared with waiting until 67. Waiting beyond full retirement age increases the benefit by 8% per year until 70, according to the Social Security Administration.
The Break-Even Point Is Around 79
The smaller benefit does not necessarily mean less money overall. By 67, the early claimant in this example would have received $84,000 that the person who waited did not.
Once the second person begins collecting $2,000 per month, it takes about 140 months for the extra $600 to erase that head start. That puts the simple break-even point at approximately 78 years and eight months. The estimate does not account for taxes or future cost-of-living adjustments.
Longevity matters. A man turning 65 in 2026 can expect to live another 19.2 years on average, according to Social Security's Cohort Life Expectancy. For a woman, it's 21.8 years. Individual health and family history may help you decide.
When Claiming Early Makes Sense
A bigger check later doesn't help if it means going into debt or draining savings now to get by.
"If someone retires at 62 without much other income, I'd rather see them claim Social Security than run up high-interest credit card debt," said Geoffrey Schmidt, a registered Social Security analyst and founder of retirement information platform Holy Schmidt!
Schmidt said claiming can also help someone avoid selling investments during a down market just to cover expenses.
Poor health or a shorter life expectancy can also favor claiming sooner. In a married household, the lower earner might claim early while the higher earner waits.
Who Has the Strongest Reason To Wait?
Healthy retirees with savings, a pension or other income have more room to delay. Waiting offers a larger inflation-adjusted income stream later, when returning to work may no longer be realistic.
The case is strongest for married couples.
"The higher earner of a married couple is probably at the top of my list," Schmidt said.
"When one spouse passes away, the survivor generally receives the greater of the two benefits, not both," said Harold Zazula, a certified financial planner and investment adviser representative with Crystal Capital Management Corporation. Social Security backs this up on its own site: Survivors don't get to add their check to their late spouse's, they just get whichever one is bigger. Delaying the higher earner's benefit can mean a larger check for whichever spouse lives longer.
Working Can Shrink Early Checks
Claiming before full retirement age gets more complicated if you continue working.
In 2026, Social Security withholds $1 for every $2 earned above $24,480 if you remain below full retirement age all year. If you reach full retirement age during 2026, it withholds $1 for every $3 earned above $65,160 before the month you reach that age.
The earnings limit disappears beginning with the month you reach full retirement age. Social Security also recalculates your benefit to account for months when payments were withheld, so that money is not necessarily lost permanently.
The Bottom Line
Claiming early provides more years of smaller checks. Waiting provides fewer years of larger checks and more protection if you live well into retirement.
Before you decide, log into your my Social Security account and pull up your personalized estimates at 62, full retirement age and 70. Then weigh those numbers against your health, whether you plan to keep working and whether a spouse might one day depend on your benefit.
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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