Choosing when to claim Social Security is one of the most important financial decisions for retirees. The system is designed to be roughly actuarially neutral, but for those in good health, delaying often provides the highest lifetime value.
The Three Milestones
- Age 62: Earliest claiming age. Results in the smallest monthly check.
- Age 67: Full Retirement Age (FRA). You receive 100% of your primary insurance amount.
- Age 70: Latest claiming age. You receive the maximum possible benefit (124% of FRA).
The Survivor Benefit Power
For married couples, the higher earner's decision is particularly critical. When one spouse dies, the survivor inherits the larger of the two Social Security checks. By delaying to 70, the higher earner locks in a larger inflation-protected "insurance policy" for their surviving spouse.
DivAgent Educational Standards
This definition is part of the DivAgent Income Academy curriculum. Our glossary is designed to bridge the gap between institutional jargon and retail investor understanding. Each term is reviewed by our Research Team for accuracy, specifically in the context of:
- Tax implications (Ordinary vs. Qualified)
- Impact on Total Return calculations
- Relevance to Option-Income strategies
- Risk assessment in a retirement portfolio
*While we strive for precision, financial terminology can evolve. Always verify definitions with official regulatory sources (SEC, IRS) when making tax or legal decisions.