Retirement Social Security

Here's How Much Social Security You'll Lose if You Retire at 64 Instead of 65

Claiming just one year early can shrink your monthly benefit more than you might expect.

By Adam Palasciano

Edited by Calista Headrick

Updated Dec. 18, 2025

Retirees may be surprised to learn how much difference one year can make when claiming Social Security. The benefit you lock in becomes permanent, which means early decisions can shape your finances for decades. Understanding how reductions work is essential if you want to maximize your senior benefits and protect your long-term income. Even delaying your claim by a single year can meaningfully increase your monthly check.

Here is what to know before choosing between age 64 and age 65 as your start date.

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Social Security explained

Social Security provides a monthly income to retirees based on their lifetime earnings and work history.

The Social Security Administration calculates your benefit using your highest 35 years of earnings and the age you start collecting, which means both timing and earnings levels play key roles. You can claim as early as age 62, but doing so reduces the amount you receive each month by about 30%. Waiting until your full retirement age (FRA) — typically 67 for those born in 1960 or later — allows you to receive your full benefit, while waiting until age 70% can increase your benefit by 8% per year (24% more than claiming at FRA).

Claiming later or earlier is a personal decision, but understanding the rules helps you plan more effectively.

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Current average Social Security benefit for retired workers

As of September 2025, the average monthly Social Security benefit for retired workers is $2,009.50. This figure gives retirees a benchmark when estimating how their own benefit might compare. Some people will receive more based on higher earnings, while others may receive less if their work history includes lower-earning years.

Knowing the national average can help you gauge how early claiming decisions might affect affordability in retirement.

Average benefit of someone who claims Social Security at age 64 versus age 65

The Social Security Administration provides clear reduction percentages for those who claim before their FRA. Retire at age 65, and you will receive 86.7% of your full benefit. Retire at age 64, and that drops to 80%. The earlier you claim, the greater the reduction.

Here's an example scenario:

Imagine your full benefit at FRA is $2,000 per month. If you retire at 65, your reduced benefit becomes $1,734 per month (86.7% of the full amount). If you retire at 64, your monthly benefit drops further to $1,600 (80% of the full amount). That one-year difference costs you $134 per month, or $1,608 per year, which can add up significantly over a lengthy retirement.

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Why claiming your Social Security benefit later increases your lifetime benefit

Social Security reductions for early claiming are permanent, which means delaying even a single year helps preserve more income across your lifetime. The system is designed so that waiting closer to your FRA reduces the penalty applied to your benefit. Every month you delay after age 62 results in a slightly higher check, helping you stretch your retirement dollars.

Waiting until 70 yields even larger credits, giving retirees additional incentive to hold off when possible. While not everyone can delay, understanding the long-term trade-offs is essential.

Ways to increase your Social Security benefit

Boosting your eventual benefit can make retirement more manageable, especially if you expect to rely heavily on Social Security.

Work for more years

Your benefit is based on your highest 35 years of earnings, so replacing a low-earning year with a higher one can increase your future payment. Even one additional year of income late in your career could make a measurable difference in your benefit.

Increase your taxable earnings

Raising your income, whether through part-time work, delayed retirement, or higher-paying roles, can enhance your benefit calculation. Since Social Security rewards higher earnings, even short-term boosts can pay off.

Delay claiming when possible

Holding off on filing until closer to your FRA or until age 70 helps maximize your monthly income. While not everyone can wait, those who do will see a meaningful increase in their lifetime benefit potential.

Bottom line

Claiming Social Security at 64 instead of 65 may seem like a small shift, but it produces a permanent reduction that can add up over decades. Understanding how each claiming age impacts your monthly check helps you build a retirement plan that supports long-term financial stability.

Thoughtful timing, combined with strategies to boost your earnings record and delay benefits, can help you maximize your senior benefits and lower your financial stress in retirement.

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