Overview
- New guidance highlights that choosing a 2026 claim date locks in your monthly check for life, and a 2019 study found most retirees could gain more lifetime income by waiting until age 70.
- Under current rules, people born in 1960 or later reach full retirement age at 67, filing at 62 can cut benefits by about 30%, and delaying boosts checks up to age 70.
- The Social Security Board of Trustees projects the trust funds will be depleted by 2034, which would leave ongoing revenue to cover roughly four-fifths of promised benefits unless Congress acts.
- Social Security typically replaces about 40% of a typical worker’s pay, while many households need 70% to 80%, so steady IRA or 401(k) saving helps close the gap.
- If retirement comes early, planners suggest mapping cash flow, using an emergency fund if available, reviewing IRA or 401(k) withdrawals, adjusting investments for near-term needs, and weighing whether to claim now or wait.