Here’s How Much Money the Average 65-Year-Old Leaves on the Table by Claiming Social Security Early
Claiming Social Security at 65 feels logical, especially when Medicare kicks in at the same age. But that timing decision carries a financial consequence that follows you for the rest of your life, and most people never stop to calculate…
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There are some tough decisions you might have to make in the course of your retirement planning. You’ll need to decide where to live, how much to spend each year, and when to claim Social Security.
The latter decision is an important one, because Social Security may end up being the only guaranteed income source you have in retirement.
Even if you kick off your senior years with a nice amount of savings, that money could technically run out over time. But Social Security pays you a monthly benefit for life, so the larger your checks are to begin with, the more long-term financial stability you might enjoy.
Some people are tempted to claim Social Security at age 65 because that’s when Medicare eligibility typically begins. But you should know that if you file for Social Security at 65, you’ll shrink your monthly benefits in a serious way.
What it means to claim Social Security at 65 versus 67
If you were born in 1960 or later, your full retirement age (FRA) for Social Security is 67. That’s the age when you get to collect your monthly benefits based on your earnings history without a reduction.
Now you can file for Social Security as early as age 62. But for each month you claim Social Security ahead of FRA, your benefits get reduced.
As of the end of 2025, the average monthly Social Security benefit for 65-year-olds was $1,607.27. By contrast, the average benefit for 67-year-olds was $2,016.48. That’s a difference of roughly $409 per month, or close to $5,000 a year.
Now it’s worth noting that the numbers above do not necessarily reflect claiming ages. Rather, they represent what the average Social Security recipient at each age got to collect as of the end of 2025.
Still, you should know that if you claim Social Security at 65 instead of waiting until an FRA of 67, your monthly checks will be reduced by about 13.33%. That’s a hit you may not be able to afford if you don’t have a lot of savings or another way to supplement your Social Security benefits.
Don’t let Medicare sway your decision
You may be thinking you’ll file for Social Security at age 65 because you’re enrolling in Medicare. But that alone isn’t a great reason to accept reduced Social Security benefits for life.
It’s one thing if you’re retiring at 65 and need the money. But if you’re continuing to work, you shouldn’t necessarily rush to claim benefits just because you’re enrolling in Medicare.
Social Security and Medicare are two separate programs. And the main way they interact in retirement is if you’re getting Social Security, your Medicare Part B premiums are paid out of your benefits automatically.
But if you’re not getting Social Security at the time of your Medicare enrollment, there are plenty of other ways to pay those Part B premiums. So if there’s no compelling reason to file for Social Security right away, you might as well let your benefits grow so they’re worth more throughout your retirement.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
