Social Security Claim Timing: $182,370 Loss for Many Retirees

Claiming Social Security at age 62 results in a permanent 30% reduction in monthly benefits, while waiting until age 70 can increase benefits by 24%. Retirees could gain over $1,000 more monthly, turning a $1,400 benefit into $2,480. The National Bureau of Economic Research notes that just 10% of retirees claim benefits at 70, which is optimal for 90%, leading to an average loss of $182,370. This decision is crucial for retirees looking to maximize their income during retirement.