Why Waiting Until 67 to Claim Social Security Is Your Best Financial Move

The debate over when to claim Social Security benefits continues to divide Americans. While a 2025 Schroders survey found that 44% of nonretired Americans plan to file before reaching full retirement age, there’s a compelling financial case for waiting until 67. Here are four reasons why holding off on your benefits claim until that age represents a strategic financial decision.

Full Benefits at 67: The 30% Advantage

One of the most straightforward reasons to wait until 67 is receiving your complete, unreduced monthly benefit. If you claim as early as 62, your monthly payment drops by approximately 30%. Consider this example: if your full monthly benefit at 67 would be $2,000, claiming at 62 reduces that to just $1,400 per month. Over a 20-year retirement, that difference compounds to thousands of dollars in lost income. At 67, you receive the full amount you’ve earned throughout your working years, which becomes even more valuable if you continue working part-time or tackle unexpected expenses during your early retirement years.

Maximizing Your Spouse’s Spousal Benefits

Married couples have additional financial considerations that make waiting until 67 particularly advantageous. Your spouse may qualify for up to 50% of your monthly Social Security benefit as a spousal benefit. Using the same $2,000 monthly benefit example, your spouse could receive $1,000 monthly. However, if you claim before reaching full retirement age, your benefits decrease—and critically, so do theirs. Even if you eventually wait until age 70 to claim your own benefits, your spouse’s spousal benefit caps out at what you would have received at 67. This means waiting until 67 optimizes household retirement income across both partners.

Maintaining Your Earning Power Without Penalties

One common misconception is that claiming Social Security before your full retirement age requires giving up work. In reality, you can work and claim benefits simultaneously—but with a catch. If you claim before reaching full retirement age and earn above the annual limit ($24,480 for 2026), the Social Security Administration withholds $1 for every $2 you earn over that threshold. Here’s the key advantage of waiting until 67: once you reach full retirement age, this earnings restriction disappears entirely. You can earn unlimited income without any impact on your Social Security payments. Additionally, any benefits previously withheld are recalculated and restored to your account.

Strategic Alignment with Your Retirement Account Withdrawals

Coordinating your Social Security claim with your overall retirement strategy is crucial for long-term financial stability. If you have significant savings in a 401(k), traditional IRA, or other retirement accounts, waiting until 67 to claim Social Security allows you to sequence your withdrawals more strategically. Rather than tapping all your accounts simultaneously, you can use the five-year gap between 62 and 67 to continue building your retirement nest egg while minimizing tax implications. This phased approach reduces the risk of depleting your savings too quickly and extends your financial runway throughout retirement.

Finding Your Personal Financial Balance

The optimal Social Security claiming strategy ultimately depends on your individual circumstances, health, family situation, and financial goals. While these four reasons make a compelling case for waiting until 67, there’s no universally “correct” answer. Someone facing serious health challenges or financial hardship may have valid reasons to claim earlier. The important takeaway is evaluating all factors specific to your situation—and making the decision that allows you to retire with genuine confidence and peace of mind, rather than regret.