Many associate 65 with retirement, but the average American retires at 62, the earliest age to begin claiming Social Security. However, delaying benefits can significantly increase your monthly payment. To maximize your Social Security benefits, it’s best to wait until your "full retirement age" (FRA), which has gradually risen to 67 for those born in 1960 or later.

You can start Social Security benefits as early as 62, but if you wait until your FRA, you’ll receive the full amount. Delaying beyond FRA results in an 8% annual increase in your benefit up until age 70. For example, if you claim at FRA (ages 66-67), you could receive a maximum benefit of $3,822 per month. If you start at 62, that drops to $2,710, but if you wait until 70, the amount rises to $4,873.

The FRA varies depending on your birth year. For those born in 1955, it’s 66 years and 2 months, and it increases by two months each year until it reaches 67 for those born in 1960 or later.

In addition, you can access retirement savings in 401(k)s or IRAs without penalties at 59½, but Social Security can’t be claimed until 62. However, if you continue working while receiving Social Security before FRA, your benefits will be reduced if you earn above $22,320 annually. For every $2 you earn over this limit, $1 will be deducted from your Social Security payments.

Choosing when to file for Social Security is a personal decision that depends on factors like your health, financial situation, and family history. Delaying benefits can provide a higher monthly payout, but it's important to weigh this against your immediate needs and circumstances.