Taking Social Security at 62 vs. 70: What’s the Right Move for Your Retirement?

Posted on July 22, 2025 by Dan Pascone

You’ve worked hard, saved diligently, and now you’re staring down one of the biggest retirement decisions: When should I take Social Security?

Claiming too early could shrink your lifetime income by hundreds of thousands. Waiting too long? It could mean unnecessarily straining your portfolio during critical years. In this blog, we break down how your claiming age directly impacts retirement success, backed by real numbers and strategic insight.

Watch Our Video Guide Below

Want to see the full walk-through and comparison visuals? Watch our detailed YouTube video that breaks down two retirement case studies, one who claims early and one who delays.

Watch Here:

Social Security: The Timing Dilemma

Social Security benefits are based on:

Your lifetime earnings
The age you start claiming

For those retiring now, the Full Retirement Age (FRA) is typically 67. Claiming earlier reduces your monthly benefit, while delaying increases it.

Claim at 62: Up to 30% reduction
Wait until 70: Get up to 8% more per year after FRA

These payments include annual cost-of-living adjustments (COLA), which makes waiting even more attractive over time.

Age 62 vs. Age 70: Real Scenarios, Real Results

Let’s compare two fictional retirees, Pilot Pete and Chef Steve, with the exact same savings, lifestyle, and retirement goals.

Case Study: Pete (Claims at Age 62)

Monthly benefit: $1,613
Total lifetime benefits: $917,222
Retirement success rate: 78%
Relies less on investments early, but sacrifices long-term income
His wife also claims early, reducing spousal benefits

Case Study: Steve (Claims at Age 70)

Monthly benefit: Maximum allowed
Total lifetime benefits: $1,175,040
Retirement success rate: 85%
Uses portfolio withdrawals between 62–70
Gains long-term stability and higher income in later years

🔁 Break-even age: 78
If you live beyond 78, delaying Social Security tends to outperform early claiming.

Why Age 67 May Be the Optimal Sweet Spot

Interestingly, claiming at Full Retirement Age (67) leads to:

Retirement success rate: 88%
Balanced income flow with reduced reliance on portfolio
No penalties or reductions in benefits

In many scenarios, claiming at FRA may strike the ideal balance between income needs, longevity risk, and investment sustainability.

What If the Social Security Trust Fund Runs Dry?

The Social Security Trustees project that the trust fund may be depleted by 2035. But even if that happens:

80% of benefits are still expected to be paid
A 20% cut could be manageable with proper planning

✅ Smart retirees model for reduced payouts and structure diversified income streams that don’t rely solely on Social Security.

Planning Isn’t Optional, It’s Essential

Don’t assume Social Security is a one-size-fits-all decision. The difference between claiming early and waiting can:

Boost your success rate by 10% or more
Protect your portfolio from premature depletion
Influence spousal and survivor benefits
Impact tax planning and Medicare premiums

Personalized planning matters.