Breaking: New Report Challenges Conventional Wisdom on Social Security Claiming
February 22, 2025 – A comprehensive report from the Center for Retirement Research reveals a steady decline in the number of Americans claiming Social Security benefits at age 62, yet it remains the most popular claiming age. The findings, released today, urge retirees to rethink the long-held strategy of taking benefits as early as possible.
“While 62 is still the most common age to start benefits, the downward trend signals that retirees are becoming more aware of the financial trade-offs,” said Dr. Alicia Munnell, director of the Center for Retirement Research. “This report should be a wake-up call for anyone considering early claiming without fully understanding the lifetime impact.”
The Key Finding: Popular but Declining
According to the study, the percentage of workers opting for Social Security at 62 has fallen from 35% in 2000 to roughly 25% in 2024. However, it remains the single most common age to claim benefits, primarily because it is the earliest age of eligibility.
“Age 62 is the first opportunity to collect, and many people see it as a way to retire sooner,” explained Munnell. “But the report shows that delaying benefits can significantly increase monthly payments.”
Background: The Social Security Claiming Landscape
Social Security benefits can be claimed as early as age 62, with full retirement age (FRA) ranging from 66 to 67 depending on birth year. Claiming before FRA results in a permanent reduction of up to 30% in monthly benefits. Conversely, delaying benefits past FRA up to age 70 yields an 8% annual increase in payments.
Historically, the majority of workers have chosen to claim at 62, often citing financial necessity or a desire to retire early. However, the report indicates a gradual shift toward later claiming, driven by increased longevity and greater awareness of the financial benefits of waiting.
Why the Change Occurs
The Center for Retirement Research attributes the decline to several factors: improved financial literacy, rising life expectancy, and changes in the labor market that allow older workers to remain employed. Nonetheless, the persistence of age 62 as the most popular claiming age suggests many still prioritize immediate income over long-term security.
“We’re seeing a slow but steady move away from claiming at 62,” said Munnell. “But the fact that it remains the top choice indicates that more education is needed.”
What This Means for Retirees
The implications are significant: claiming at 62 locks in a lower monthly benefit for life, potentially costing retirees tens of thousands of dollars over their remaining years. For a person with a $1,500 monthly benefit at FRA, claiming at 62 reduces it to about $1,050 a month. Waiting until age 70 would boost it to roughly $1,860 a month—an increase of 77%.
“This report should make anyone considering age 62 pause and run the numbers,” said financial planner Susan Bradley. “For many, the extra income from waiting could mean the difference between a comfortable retirement and financial stress.”
Key Takeaways from the Report
- Age 62 remains the most popular claiming age, but its popularity is declining.
- Financial literacy is improving, yet many still make suboptimal claiming decisions.
- Delaying benefits yields substantial increases – up to 8% per year past FRA.
- Health and life expectancy should be key factors in the decision.
“The report provides clear evidence that the old adage ‘claim as soon as you can’ is outdated,” added Bradley. “Retirees need to consider their personal financial situation and goals.”
What’s Next?
Policymakers and financial advisors are expected to use these findings to promote later claiming. The Social Security Administration may also ramp up public education efforts. For individuals, the message is clear: don’t rush to claim at 62 without understanding the long-term consequences.
“This report changes the conversation,” concluded Munnell. “It shows that the trend is moving in the right direction, but we have a long way to go. Retirees should use this information to make more informed choices.”
Readers considering Social Security are urged to consult with a financial advisor or use the Social Security Administration’s online calculators to estimate their benefits at different claiming ages.