Every year, millions of Americans claim their (well-deserved) Social Security retirement benefits, with an increase in recent years. Experts say the so-called “Peak 65” is occurring, which is mainly due to the large baby boom generation reaching retirement age.
According to data from the Social Security Administration (SSA), more than 4.1 million Americans will retire each year through 2027. This means that more than 11,200 people retire every day and that a total of 73 million baby boomers have reached or will reach age 65 in 2025, representing more than one-fifth of the United States population.
And with all this, Americans are wondering two things: what is the best age to claim retirement benefits and how much they will receive if they retire this year. And we we have the answers.
Patience vs. necessity: claiming Social Security very early cuts you almost 30% for life
Social Security in the United States offers flexibility in retirement age, but the decisions made significantly impact benefit amounts. Those who choose to claim their benefits at age 62, the minimum age allowed, face a permanent reduction.
For example, if your full retirement age (FRA) is 66 years and 10 months (as applies to those born in 1959), you will receive 29.17% less than the full amount. This translates to approximately $2,917.50 per month for those who had maximum income, a useful option for those who need immediate liquidity, but with long-term consequences.
For those who can postpone retirement, the incentives are considerable. By waiting until age 70, delay credits are activated, which increase the benefit by 24% over the base amount. In 2025, this allows us to reach a maximum of $5,108 per month, according to official data from the Social Security Administration (SSA).
However, this amount requires meeting two key requirements: having earned income equal to or greater than the taxable limit ($176,100 in 2025) for at least 35 years, and having worked for a minimum of 10 years to be insured.
The basic requirements to claim up to $5,108 from Social Security are these
Income history is the base of the pyramid:
The beneficiary must have worked and earned the maximum Social Security taxable income for at least 35 years. The taxable maximum is $176,100, while for previous years it must have been at least the taxable maximum for each year. Keep in mind that this limit is adjusted every year based on inflation.
The benefit is calculated based on the average indexed income of the 35 years of highest income. If there are less than 35 years, years with zero income are counted, which reduces the benefit.
The SSA consequently requires being fully insured, which means that the applicant must have accumulated at least 40 work credits (which is 40 quarters), which is equivalent to 10 years of work with Social Security taxes duly paid on time and documented.
The age at which the payment is claimed defines everything:
Benefits must be claimed at age 70 to maximize the amount, as this allows late withdrawal credits to accumulate, which increase the benefit by 24% over the PIA for those who can wait 36 months after FRA.
Earnings are indexed to the National Wage Index to reflect their value at retirement, ensuring benefits reflect purchasing power. If working while receiving benefits before FRA, there may be additional reductions due to the earnings test, but these are recovered once FRA is reached, and benefits can be recalculated to include the deducted amounts.
How to successfully reach the maximum possible Social Security payment
Imagine Jane, who turns 62 in 2025 and is about to make a big decision: when to start receiving her Social Security? If you do it right at 62, you’ll receive $1,000 a month. But if you wait, that number can grow considerably. So is it worth holding on for a few more years?
Jane was born in 1959, so her full retirement age (FRA) is 66 years and 10 months. If you decide to take benefits early, your check is reduced. For example, if you claim at 62, you receive only 70.83% of your FRA amount, that is, $1,000 instead of $1,411.55. Each month you delay claiming before your FRA reduces your benefit less, and if you go past your FRA, the amount goes up: you earn an extra 8% for each year until age 70.
What if you decide to wait? At 63, your benefit rises to $1,070. At 64, it reaches $1,144. At 65, $1,238. And right at your FRA, you get 100%: $1,411. If he continues to hold on, at 67 he will earn $1,524; at 68, $1,646; at 69, $1,778; and if you wait until you are 70, you reach the maximum: $1,750 per month (a small technical adjustment prevents it from reaching $1,778 because the credits are limited to 36 months).
Every extra year means a bigger check for life. If Jane has good health, other income, and hopes to live past 80, waiting may be a smart move. But if you need the money soon or prefer to start enjoying it now, claiming at 62 is also valid.
