At what age can you receive the highest Social Security benefits? Here's the best age to retire

For generations of Americans, turning 62 has symbolized the beginning of retirement. It's the earliest age you can claim Social Security benefits, and for many, the allure of receiving monthly checks as soon as possible is strong.

But while filing at 62 may seem like a smart way to access your hard-earned benefits early, doing so comes at a steep cost-one that financial experts and, now, the federal government say is often best avoided.

The U.S. government has recently clarified what retirement advisors have long recommended: delaying your claim can significantly increase your monthly payments for life.

The difference between filing at 62 versus waiting until full retirement age-or even longer-can add up to tens of thousands of dollars over the course of your retirement.

To make informed decisions, it's important to understand how Social Security calculates your benefits and how the timing of your claim affects what you receive.

How your age, work history, and income determine your benefit

Social Security benefits are not automatic. To qualify for retirement benefits, you must earn at least 40 work credits. Most workers accumulate these credits over a period of 10 years, as you can earn up to four credits per year. For 2025, you earn one credit for every $1,730 of wages or self-employment income, meaning $6,920 will get you the maximum four credits.

Once you're eligible, your benefit amount is calculated based on your 35 highest-earning years. If you worked fewer than 35 years, zeros are averaged in, lowering your monthly payout.

That makes continuing to work even in your 60s potentially valuable-not just for delaying benefits but also for possibly replacing lower-earning years in your record.

However, the most critical decision lies in when you choose to start collecting your benefits. If you begin receiving Social Security at age 62, your monthly checks will be reduced-sometimes by as much as 30 percent-compared to what you'd get if you waited until your full retirement age, which ranges between 66 and 67 depending on your birth year.

For each year you delay past your full retirement age, your benefit increases by approximately 8 percent per year until age 70. After that, there's no financial incentive to wait longer, as your benefit maxes out.