A staggering number of Americans are making a costly mistake when it comes to claiming their Social Security benefits. According to the 2025 AARP 90th Anniversary Survey, many people are claiming Social Security before reaching the optimal age of 70, which could cost them over $100,000 in retirement income. This common mistake is driven by confusion about the best time to claim benefits and concerns about the program’s future. But delaying claims could pay off big in the long run—here’s why it matters.
Why Early Claims Can Be Costly
When it comes to Social Security, timing is everything. Most Americans are unaware of the significant financial impact that claiming benefits too early can have. According to AARP’s survey, while 74% of people believe they understand how Social Security works, fewer than 25% know that 62 is the earliest age to claim retirement benefits. Even fewer—just 19%—understand that waiting until age 70 provides the highest monthly benefit.
This knowledge gap has real consequences. By claiming benefits early, retirees lock in a permanently lower monthly payment, which can add up to a substantial loss over their lifetime. The AARP report highlights that 66% of people over 50 still don’t know the age for maximum benefits, reflecting a serious issue with public education on Social Security planning.
The Impact of Early Claims on Retirement Income
Claiming Social Security benefits before age 70 can have a major impact on retirement income. For example, if a person claims benefits at 65, they will only receive around 86.7% of their full benefit (approximately $1,560 per month for someone with a Full Retirement Age (FRA) of 67). If they wait until 70, their benefit increases to 124% of their FRA, or about $2,232 per month.
The difference between claiming at 65 and waiting until 70 can be significant, with the lifetime benefit for someone claiming at 70 totaling about $401,760, compared to $374,400 for someone who claims at 65. That’s a difference of $27,360 in just the first 20 years. And the true loss could be much higher if you live beyond 85.
Why the Real Loss May Be Even Higher
For individuals who live past age 85, the difference in monthly benefits continues to grow. A higher monthly payment provides a larger base amount for cost-of-living adjustments (COLA), which are applied to Social Security payments each year. This means that delaying your claim until 70 not only gives you a larger monthly benefit, but it also ensures that future cost-of-living increases are applied to a higher base amount, compounding over time.
Additionally, if you are married, your spouse may also be impacted by your decision. Survivor benefits, which are based on your record, will be lower if you claim early, further reducing the financial security of your loved ones.
What You Can Do to Maximize Your Social Security Benefits
The key takeaway here is that waiting until age 70 to claim Social Security can lead to a significantly higher monthly income and greater lifetime benefits. Unfortunately, many people are unaware of this strategy, which could cost them $100,000 or more over the course of their retirement.
To avoid making this costly mistake, it’s important to educate yourself on how Social Security works and understand the financial impact of your decisions. If you’re not sure when to claim, consider speaking with a financial advisor to help determine the best strategy for your unique situation.
Millions of Americans are missing out on substantial retirement income by claiming Social Security benefits too early. Waiting until age 70 can result in a significantly higher monthly benefit and greater lifetime payments, potentially saving you hundreds of thousands of dollars. It’s essential to understand the optimal age for claiming and make informed decisions about when to start receiving Social Security benefits. Don’t leave money on the table—delay your claim and maximize your Social Security income for a more secure retirement.
