Unlocking Benefits: The Best Time to Apply for Social Security

Reviewed by David KindnessFact checked by Vikki VelasquezReviewed by David KindnessFact checked by Vikki Velasquez

You’re eligible to collect Social Security at age 62, but that’s not always the best time to start taking it. You’ll be penalized for taking Social Security before your full retirement age (66 or 67) and you can earn an even larger benefit if you wait until age 70 to start collecting.

Key Takeaways

• You’re eligible for Social Security at age 62, but you’ll pay a penalty for not waiting until your full retirement age to begin collecting.
• You can boost your benefits by waiting until you’re past your full retirement age to apply.
• You can continue to get a boost for every month you delay until age 70.
• The youngest age when you can apply is 61 years and nine months old.
• While it typically takes several weeks to process a new application, some may be approved in the same month in which you apply.

When Can You File for Social Security?

The earliest you can apply for Social Security benefits is at age 61 and nine months, and you can expect to receive your first payment four months later—the month after your 62nd birthday. Typically, Social Security benefits are paid the month after they are due.

For example, if you turn 62 on December 15, then your first full month of eligibility is January, and your payment for that month will arrive in February. If you have already reached age 62 and met all other eligibility criteria, then you may begin collecting benefits in the same month as you apply if you specify, although your first payment would still not arrive until the following month.

Should You Wait Until Full Retirement Age To Apply for Social Security?

Receiving Social Security at age 62 means that you will receive a reduced payment compared to waiting until your full retirement age. The full retirement age is 66 for people born between 1943 and 1954, and phases up to age 67 for people born in 1960 or after.

If you were born in 1960 or later, you’ll be penalized 30% for taking Social Security before full retirement age, and all reductions are permanent. If you delay taking your benefits past full retirement age, you receive an 8% increase for each full year that you do so, up until you reach 70, at which point the increases stop.

You can calculate your own full retirement age based on your birthday to help you consider how to unlock in the maximum amount of Social Security benefits.

8%

The amount that your monthly Social Security benefit increases for each year that you delay taking benefits past full retirement age (until you reach age 70, at which point the increases stop).

The Application Process

The most convenient way to apply for Social Security benefits is through the online platform found on the Social Security Administration (SSA) website. The application itself takes about 10 to 30 minutes and can be saved at any point for future completion. This application can also be used to apply for Medicare.

To ensure a quick and easy application process, it is best to have all the necessary information on hand before beginning. This can include but is not necessarily limited to, the birth and marriage dates of you and your spouse, your Social Security number, proof of citizenship, tax information, employment history, military records, and bank account information for direct deposit.

Sometimes, there are requests for documents, including original birth certificates, marriage licenses, and tax returns. An agent will typically contact you if any clarification or additional documentation is needed. An agent may also inform you if you are eligible to receive more money through another person’s account, such as a spouse, and if anyone else is eligible to receive benefits under your account.

The Future of Social Security

Americans are worried about their odds of receiving Social Security benefits in the future. A 2023 Gallup survey found that 47% of future retirees did not expect the Social Security Administration (SSA) to be able to pay benefits when they retired.

Current SSA projections are a bit more positive. The most recent report on the status of the Old-Age and Survivors Insurance (OASI) Trust Fund projects that the fund will be able to pay out 100% of benefits until 2033. After that point, the fund will be able to pay 79% of scheduled benefits.

There are ways for Congress to ensure that Social Security can pay full benefits, including raising the payroll tax, eliminating the cap on taxable income, and raising the retirement age. Further, there’s precedent for making a fix. In 1983, the Greenspan Commission recommended changes to the program that included raising the retirement age and increasing Social Security tax rates. When adopted by Congress, these fixes addressed the trust fund shortfalls and ensured the program’s solvency.

However, future retirees will want to consider current benefit projections when planning for retirement.

Warning

Even if the SSA is able to pay full benefits in the future, most retirees will need additional sources of income. Experts advise retirees to replace 70% of their preretirement income; Social Security benefits typically replace only 40% of income.

Frequently Asked Questions (FAQs)

How Long Does It Take To Get Your First Social Security Check After Applying?

Benefit payment schedules are dictated by date of birth. For those with birthdays from the first to the 10th of the month, payments will be made on the second Wednesday of every month. For those born from the 11th to the 20th, payment is made on the third Wednesday of the month. For those born from the 21st to the 31st, payments are made on the fourth Wednesday of the month.

This means that if you turn 62 on December 15, then your first payment will arrive on the third Wednesday of the following February. If your birthday is December 15 and you are already over age 62, then your first payment should arrive on the third Wednesday of January. If you’re already on Social Security or receive both Social Security and Supplemental Security Income (SSI) payments, then you may receive your benefits on a different date.

How Far in Advance Should I Apply for Social Security?

You can apply up to four months before you want your Social Security benefits to begin, according to the SSA. To do so, apply online or make an in-person appointment at a local Social Security field office.

What Is the Maximum Social Security Benefit?

The maximum benefit for 2024 is $4,873 per month. To receive this benefit, you would need to retire at age 70. If you retire at your full retirement age, on the other hand, your maximum benefit would be $3,822 per month. (Your full retirement age depends on the year you were born and ranges from 66 to 67 years old.) If you retire at 62, your maximum monthly benefit would be $2,710.

The Bottom Line

Applying for Social Security benefits is a fairly simple process. Applications can be submitted online or in person at your local Social Security office. It is generally recommended that you apply a few months in advance of when you would like to start receiving the checks. Depending on your situation and the required documentation, your application may be approved within the same month as when you apply.

Once you have completed your application and supplied all of the requested information, you will receive a receipt for your records and a confirmation number that you can use to check the status of your application online after submission. You can also follow up over the phone or in person at your local Social Security office.

Read the original article on Investopedia.