The decision of when to claim Social Security is worth hundreds of thousands of dollars — possibly more than your entire 401(k) balance. Yet most people claim at 62, the earliest possible age, locking in a permanently reduced benefit for life.
The difference between claiming at 62 and waiting until 70 can be **$1,000+ per month**. Over a 20-year retirement, that's **$240,000+** in lost income. Here's how to make the right call.
How is your Social Security benefit calculated?
The SSA calculates your Primary Insurance Amount (PIA) using your highest 35 years of indexed earnings. The formula uses three bend points: **90%** of the first **$1,174** of monthly earnings, **32%** from **$1,174** to **$7,078**, and **15%** above **$7,078**.
This progressive formula means lower-income workers get a higher percentage of their pre-retirement earnings replaced. If you worked fewer than 35 years, zeros are averaged in, reducing your benefit.
What is your Full Retirement Age?
FRA depends on your birth year. Born between 1943-1954? Your FRA is **66**.
Born in **1960 or later**? Your FRA is **67**. For birth years in between, FRA increases by 2 months per year.
Claiming at FRA gives you 100% of your PIA. Claiming before FRA permanently reduces it. Claiming after FRA permanently increases it.
What happens if you claim at 62?
Find Your Optimal Claiming Age
Enter your birth year, income, and expected retirement age to see your estimated benefit at 62, FRA, 70, and every age in between. Our side-by-side comparison chart makes the decision clear.