If you’re at least 62 years old, or you’ll be turning 62 this year, then claiming Social Security is something you’re able to do in 2026. But that doesn’t mean you should take benefits by Dec. 31.
See, your Social Security filing age helps determine how much of a monthly benefit you get from the program. If you file at full retirement age, which is 67 for anyone born in 1960 or later, you’ll get the monthly benefit you’re entitled to based on your income history without a reduction.
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Each month you claim Social Security before full retirement age, however, reduces your monthly checks for life. On the flip side, delaying Social Security past full retirement age gives your benefits a permanent boost. Your benefits increase 8% per every year you hold off, up until age 70.
If you’re thinking of filing for benefits this year, there’s an essential set of calculations you need to do first. That way, you’ll see just how reliant you might be on Social Security for retirement income.
Since your Social Security filing age has an impact on your monthly checks, it’s important to know what monthly income you’ll need in retirement, and how much of that your savings can cover.
Let’s say you figure out you’ll need $4,000 a month to cover your living costs comfortably. If you have a $500,000 nest egg, and you plan to withdraw from your savings at a rate of 4% per year, that gives you $20,000 in annual income. On a monthly basis, that’s $1,667.
What this means is that you’ll need $2,333 a month from Social Security to avoid an income shortfall. If you’re eligible for $2,400 a month at full retirement age, you should probably aim to file for benefits at that point or very close to it.
Filing at 62, for example, will reduce your monthly benefits by about 30%, leaving you with roughly $1,633 a month in Social Security. That’s not enough to cover your costs based on your estimates and retirement account withdrawals.
In fact, in this scenario, it wouldn’t be a bad idea to delay Social Security a bit past full retirement age. That way, you’ll have some wiggle room in case your costs rise over time.
Social Security could end up playing an important role in your retirement finances. Before you sign up for benefits, figure out how much you actually need from the program. That should help you land on a filing age that makes sense for you.
