Social Security retirement benefits can generally begin at 62. Claiming before full retirement age reduces the monthly amount; delaying after full retirement age increases it until age 70.
How the standard adjustment works
The Social Security Administration reduces an early retirement benefit by 5/9 of 1% for each of the first 36 months before full retirement age and 5/12 of 1% for additional months. For someone with a full retirement age of 67, claiming at 62 generally produces a 30% reduction. Delayed retirement credits for people born in 1943 or later are generally 8% per year after full retirement age, ending at age 70.
Illustrative percentages exclude future COLAs and may differ by birth date and month of claim.
Why an owner may view the decision differently
A landlord or business owner may have flexible income that can bridge the years before claiming. That flexibility can make delay more feasible—but it can also create concentration risk. Test whether the bridge depends on one tenant, one customer, one property, or continued work that may not be available.
Do not use a simple break-even age alone
A cumulative break-even comparison can be informative, but it ignores taxes, investment returns, longevity uncertainty, survivor protection, work-related benefit withholding, inflation adjustments, and the value of stable lifetime income. Married households should evaluate both records together because the higher earner’s decision can affect survivor income.
Use your actual SSA estimate
The Owner Retirement calculator asks for the monthly benefit shown at full retirement age on your Social Security statement. It does not estimate your earnings record. Verify the statement, check earnings history for errors, and use the SSA’s tools for an official estimate.
Questions to test before claiming
- What income safely covers spending while benefits are delayed?
- Will continued work trigger the retirement earnings test before full retirement age?
- How does the decision affect a spouse or future survivor benefit?
- What are the tax effects of benefits plus business, rental, and investment income?
- Would delaying reduce dependence on volatile or concentrated assets later in life?
Primary sources
Review the SSA’s early and late retirement factors, delayed retirement credits, and your personal Social Security statement before making a claim decision.