The U.S. Centers for Disease Control and Prevention reveal that women generally outlive men by 5.3 years, making retirement planning, especially the collection of Social Security benefits, a challenging endeavor. Interestingly, the Schroders 2025 US Retirement Survey reported that 44% of Americans plan to claim their benefits before the full retirement age, which is 67 for those born in 1960 or later.
An analysis using the current system shows some variations in benefits based on different reference points for collection. For instance, anyone can begin claiming benefits as early as age 62, albeit at a significantly reduced rate. However, if you choose to wait until age 70, the monthly benefits will not increase further.
Using an approximate monthly benefit of $2,000 at the full retirement age (67), waiting till 70 will increase this to $2,640 per month. Now considering an average female life expectancy of 81 years, one will accumulate $380,160 with a 12-year claim if they begin at age 70. Starting at age 67 will yield a larger total of $388,800, albeit with a smaller annual benefit. Hence, the optimal age for women to start claiming Social Security depends on their personal financial needs and chosen lifestyle. A later start offers higher monthly income, while an earlier claim spreads the income over a greater number of years.
Knowing this, it’s crucial to use the Social Security Administration (SSA) tools like the benefit calculator to get estimates for benefits at different ages. Particularly, the life expectancy calculator can be immensely helpful in formulating your collection strategy. Also noteworthy is the fact that one can withdraw their benefit claim within the first 12 months of collection should they change their mind or circumstances.
Ultimately, the decision of when to start claiming Social Security benefits relies on your need for income, your capacity to continue working, and how much you've saved for your retirement. However, factors like potentially having some benefits withheld if you work and collect benefits simultaneously before full retirement age should also be considered.