New CDC Data Shows the Best Age to Claim Social Security for the Average Retiree

Core Insights - Maximizing Social Security benefits is crucial for retirees, as it serves as the primary income source for many households aged 65 and older [1][2] Claiming Strategy - The optimal age to claim Social Security benefits is influenced by life expectancy projections, with the CDC providing updated data to guide retirees [2][10] - Claiming Social Security at age 62 results in lower monthly benefits compared to waiting until full retirement age [4][5] - The Social Security Administration calculates benefits based on the primary insurance amount, which varies depending on the retiree's birth year [5][6] Break-even Analysis - The break-even age is the age at which delaying benefits results in higher lifetime benefits; for those claiming at full retirement age versus age 62, this age is approximately 78 years and 8 months [8][9] - Delaying benefits until age 70 can significantly increase monthly payments, with a break-even age of about 85 and a half years for that decision [11] Life Expectancy Data - The latest CDC data indicates that a 65-year-old can expect to live an average of 19.7 more years, suggesting that delaying benefits may be advantageous [10][13] - Life expectancy varies by gender and ethnicity, with women and certain ethnic groups generally living longer than average [13][14] Considerations for Claiming - High earners may benefit from delaying benefits until age 70, especially if their spouse is younger, as survivor benefits are based on the higher earner's amount [15] - Individuals with chronic health issues or those needing immediate income may consider claiming benefits earlier [17] - Lower-earning spouses might find it beneficial to claim benefits as soon as possible, while the higher earner delays until age 70 to maximize household benefits [18][19]