UBCNews - Business - When To Claim Social Security for Maximum Benefits: Age 62, 65 or 70?

Episode Date: February 25, 2026

So, you're approaching retirement, and you keep hearing people talk about Social Security - when to take it, how much you'll get. It can feel pretty overwhelming, right? Today we're tackling one of the biggest decisions retirees face: should you claim Social Security at 62, wait until full retirement age, or hold off until 70? Melia Advisory Group City: Tulsa Address: 5424 S Memorial Dr Website: https://www.meliagroup.com/

So, you're approaching retirement and you keep hearing people talk about Social Security, when to take it, how much you'll get. It can feel pretty overwhelming, right? Today we're tackling one of the biggest decisions retirees face. Should you claim Social Security at 62, wait until full retirement age, or hold off until 70? Yeah, and honestly, this timing question matters so much more than people realize. We're not just talking about a few extra dollars here and there. the age you choose can permanently affect your monthly payments for the rest of your life.

Exactly. Let me ask you, why does the timing decision carry so much weight? Well, it comes down to how Social Security calculates your benefits. They're based on two main factors. Your earnings history over your working years and your age when you start claiming. If you claim early at 62, you're locking in a permanent reduction. We're talking up to 30% less compared to waiting until your full retirement age. 30%? That's huge. Right, so let's break down the three main claiming ages. At 62, you can start collecting benefits, but you'll face that permanent cut.

The reduction is calculated as 5-9ths of 1% for each month before your full retirement age for the first 36 months, then 5-12ths of 1% for each additional month. Okay, so 62 is the earliest, but it cost you. What about full retirement age? That used to be 65, didn't it? It used to be, but it's changed. Now, full retirement age varies based on your birth year. If you were born in 1960 or later, your full retirement age is 67.

For someone born in 1959, it's 66 in 10 months. At full retirement age, you get 100% of your primary insurance amount. No reductions, no penalties. And then there's the option to wait even longer, right? Until 70? Absolutely. This is where delayed retirement credits come in. For every year you wait past your full retirement age up to 70, you earn an 8% increase in your annual benefit.

So if your full retirement age is 67 and you wait until 70, that's three years of credits. A 24% boost to your monthly check. Mm-hmm, got it. And there's no benefit to waiting past 70. The credits stop at that point, so there's really no reason to delay beyond it. That point about those delayed retirement credits really sets up our next piece. the personal factors that influence your decision. But first, a quick word from our sponsor.

Making the right Social Security decision requires careful analysis of your unique situation. Malia Advisory Group serves Tulsa, Oklahoma, and the surrounding area, offering expert social security analysis, retirement planning, and IRA management services. With over 50 years of combined experience, their team helps you understand your benefits and coordinate them with your over-rength.

overall retirement income plan. Virtual consultations are available. Learn more at the link in the description. Picking up on those delayed retirement credits, how do you actually decide which age makes the most sense for you personally? Great question. There are multiple factors to weigh. First, your cash needs.

If you're still working and have other income sources, like a pension or investment portfolio, you might have the flexibility to delay. But if you need that monthly check to cover basic expenses, waiting might not be realistic. Makes sense. What else should people consider? Life expectancy is a big one. According to the Social Security Administration, the average life expectancy for a 65-year-old male is around 84 years, and for females it's about 87. If you're in good health

and expect to live longer than average, waiting can really pay off over time. You'll receive those higher payments for more years. And I gotta say, trying to predict how long you'll live is probably the only math problem where you really want to overestimate. Huh, that's true. Marital status matters too. Spousal benefits allow an eligible person to claim up to 50% of their spouse's full retirement benefit. If you're the higher earner, delaying can ensure your surviving spouse gets the maximum benefit later. And something people often forget, If you're divorced but we're married for 10 years or more, you may still be able to claim benefits based on your ex-spouse's record without affecting their payments. I see makes sense.

Employment status is another factor. If you're still working and you claim before full retirement age, there's an earnings limit. In 2025, if you earn more than $20, $2,400 annually, $1 in benefits is deducted for every $2 you earn above that threshold. Once you reach full retirement age, though, you can earn as much as you want without any reduction. So to everyone listening, if you're planning to keep working, waiting until full retirement age might save you from losing benefits temporarily. Exactly. And don't forget about taxes. Social security benefits can be taxable depending on your combined income.

Combined income includes your adjusted gross income, non-taxable interest, and half of your Social Security benefit. Depending on that total, up to 80% of your benefits could be subject to federal income tax. TACs always complicate things. What if someone claims early and then changes their mind? You actually have an option there. You can withdraw your social security application within 12 months of starting benefits, but you have to repay everything you received.

You can only do this once, and so it's not something to take lightly. Or if you've already reached full retirement age, you can voluntarily suspend benefits to earn more delayed retirement credits, and they'll automatically restart at 70. That's helpful flexibility. Now, I know a lot of people worry about the future of Social Security itself. What's the current outlook? The Social Security Board of Trustees has projected that the combined trust funds

could be depleted by 2034, after which the program would be able to pay about 81% of scheduled benefits if Congress doesn't make changes. but worth noting that Social Security is unlikely to disappear entirely. Congress has addressed funding issues before by raising their retirement age or adjusting payroll taxes. So rather than panicking and claiming early out of fear, people should focus on building a solid overall retirement plan.

Definitely. I had a client once who was convinced Social Security would run out, so he claimed at 62. Five years later, he was kicking himself because he was healthy, still active, and realized he'd locked in those lower payments permanently. That's why personalized planning is so valuable. Have you thought about your own claiming strategy yet? This decision really benefits from professional guidance.

Working with a financial planner who specializes in social security analysis can help you coordinate your benefits with your other retirement income sources. Think pensions, IRAs, investment accounts to create a complete plan. And remember, there's no one-size-fits-all answer. Consider your cash needs, your health, your marital situation, and whether you plan to keep working. Those factors together will point you toward the right claiming age for your circumstances. In other words, the optimal timing depends on your individual situation. What works for one person might not work for another.

This has been such a valuable conversation. The takeaway is clear. delaying social security often leads to higher lifetime benefits, especially if you're in good health and have other income sources. But if you need the money now or have health concerns, claiming earlier might make sense. And don't forget, you have tools available. The Social Security Administration offers online calculators and retirement estimators

to help you project your benefits at different claiming ages. Take advantage of those resources. Great advice. Thanks so much for breaking this down today. To everyone listening, think carefully about your options, run the numbers, and consider getting professional advice before making this decision.