Timing is everything—just ask General Dwight D. Eisenhower, who delayed the historic D-Day invasion by 24 hours on June 5, 1944, due to poor weather. That split-second decision changed history, much like the critical choice retirees face when deciding when to file for Social Security benefits.
According to Kiplinger, this story dives into the "8-Year Rule of Social Security," where the decision to claim benefits between ages 62 and 70 can make or break your retirement income.
Social Security remains the bedrock of retirement for most Americans, with 91% expecting to rely on it, per the Transamerica Center for Retirement Studies. Yet, a staggering 53% admit to limited knowledge about how it fits into their financial plans, according to Allianz Life.
You can file for Social Security anytime between agesof 62 and 70, but the timing drastically alters your payout. File at 62, and you’ll get about 30% less than at full retirement age, typically 66 or 67. Wait until 70, and your benefit grows by roughly 8% per year, up to 132% of the full amount.
For instance, a $1,000 monthly benefit at age 66 balloons to $1,320 if delayed to 70. That’s a hefty difference for patient planners. But the flip side? You’re missing out on years of payments while waiting.
Statistics paint a clear picture of American choices. A 2022 Congressional report shows 29.3% of new beneficiaries filed at 62, the most common age, while 24.7% chose 66, and fewer than 10% held out until 70.
Claiming at 62 offers immediate cash flow—a tempting option if you’ve retired and need income now. As Elizabeth Scheiderer of Signal Tree Financial Partners puts it, “If you need the cash flow and are retired, then collecting at 62 is the ‘easy’ button.” But there’s a catch: smaller checks for life.
Working while claiming early also bites. If you earn over $23,400 in 2025, your benefits drop by $1 for every $2 above that threshold. Plus, higher income from early claiming could push you into IRMAA territory, hiking Medicare Part B premiums later.
Preston Cherry of Concurrent Wealth Management sums up the trade-off: “Filing at 62 gives you a longer runway, but with smaller checks.” Delaying, he notes, means finding a way to bridge the gap. That’s where smart planning—using brokerage assets or Roth dollars—can make a difference.
Waiting until 70 maximizes your monthly benefit, but it’s not a guaranteed win for lifetime income. If health concerns or family history suggest a shorter life expectancy, delaying might cost you total payouts. Clark Randall of Creekmur Wealth Advisors notes the trend: the longer your expected lifespan, the later you should file, all else equal.
For married couples, strategy gets even trickier. One spouse claiming at 62 while the other delays to 70 can hedge against uncertainty, especially since the lower benefit vanishes when one spouse passes. Delaying the higher earner’s claim offers long-term security for the survivor.
Scheiderer adds a practical tip for couples: “Having one spouse collect early and one collect at 70 can ‘hedge’ the decision.” It’s a balanced approach for an uncertain future.
Made a hasty decision? If you’ve claimed within the last 12 months, you can withdraw your application, repay the benefits, and reset your claim. Alternatively, at full retirement age, you can suspend benefits to let them grow again.
Ultimately, there’s no one-size-fits-all answer, and the noise around Social Security doesn’t help. Cherry cautions against blanket advice, urging personalized decisions over podcast myths or rigid rules. Focus on what fits your life, not what sounds clever.