Here’s How Much Money the Average 65-Year-Old Leaves on the Table by Claiming Social Security Early

Quick Read

• Claiming Social Security at 65 instead of 67 permanently cuts your monthly benefit by about 13%, costing roughly $409 per month.

• Medicare eligibility at 65 is not a valid reason to claim early, since Part B premiums can be paid outside of Social Security.

• Read More: Avoid these 13 retirement mistakes before they derail your future (sponsor)

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.

Learn 13 Major Retirement Mistakes and Ways To Avoid Them

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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.

Help Avoid These 13 Retirement Mistakes Before They Derail Your Future

One investment mistake could create big risks for your retirement. Many investors make the same critical errors: being too conservative, making big bets on “sure things,” or paying excessive fees. Any of those blunders can endanger your hard-earned savings.

Now you can learn the mistakes even experienced investors make (and ways you can sidestep them before it’s too late) with this new guide: 13 Retirement Mistakes and How to Avoid Them from Fisher Investments. (sponsor)

Contact editorial@247wallst.com for any questions or corrections.