While Social Security’s full retirement age rose for some individuals, the good news is that it won’t change again. For those born in or after 1960, the full retirement age reached its maximum of sixty-seven years old. Barring any unusual moves from Congress, it is likely to stay that way for quite some time.

The 1983 Social Security amendments made a provision for the full retirement age to increase gradually from sixty-five to sixty-seven over a twenty-two-year period beginning in 2000. In 2022, however, the age climbed to sixty-seven for future recipients. “In doing so, lawmakers cited the improvements in the health of older Americans and the increased life expectancy,” Fox Business writes.

Americans Can Still Collect Earlier

Eligible Americans can still collect benefits at age sixty-two—the earliest age to do so—but there will be a hefty penalty awaiting. “A benefit is reduced 5/9 of one percent for each month before the full retirement age, up to three years. If the number exceeds three years (or 36 months), then the benefit is further reduced by 5/12 of one percent each month,” the news outlet notes. “For instance, if someone chose to collect Social Security at age sixty-two, the benefit would be reduced by 30 percent on a monthly basis,” Fox adds.

The difference in potential monthly benefits between ages sixty-two and seventy can be quite stark. For retirees who need to start collecting Social Security at age sixty-two, the maximum amount will be $2,364. But if one can wait until age seventy to file, they would be eligible for the absolute maximum amount, which currently comes in at an impressive $4,194.

“The great thing about Social Security is that you’re allowed to sign up for benefits at different ages. You can file as early as age 62 or delay your filing until the age of 70. If your full retirement age (FRA) is 67 and you decide to sit tight and claim benefits at age 70, you’ll end up with a monthly payday that’s 24 percent higher—for life,” says personal finance writer Maurie Backman at The Motley Fool.

“For each year you hold off on claiming Social Security past FRA, your benefits will grow 8 percent. This means you can score a maximum boost of 24 percent to 32 percent by filing at age 70, depending on your specific FRA,” she continues.

Gauging Life Expectancy

There are some instances, though, in which collecting earlier rather than later will make more sense. “Without a crystal ball, there’s no way to know how long you’ll live, so to some degree, delaying Social Security is always a bit of a gamble,” Backman writes. “But if your health is strong in your 60s and you have a family history of longevity, you may want to consider delaying. … On the flip side, if your health is poor, you may want to file at FRA or even earlier.”

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.