If you were born in 1968, your full retirement age for Social Security is 67. Claim then and you get your full calculated monthly benefit. Claim earlier (as early as 62) and the check is permanently smaller; wait longer (up to 70) and it’s permanently bigger. That one decision sets the amount for the rest of your life, and a few related rules on health insurance, work, and taxes can swing the math further than most people expect.
What Each Claiming Age Pays
Federal law sets full retirement age at 67 for anyone born in 1968.1Office of the Law Revision Counsel. 42 USC 416 – Additional Definitions For your birth year, that puts your full-benefit date in 2035. The amount you receive at 67 is your primary insurance amount, calculated from your 35 highest-earning years. Every other claiming age is measured against that number.
Claiming at 62
You can start as early as age 62.2Social Security Administration. Retirement Age and Benefit Reduction For you, that’s five full years early, and the reduction is 30%. The formula: five-ninths of one percent per month for the first 36 months of early claiming, then five-twelfths of one percent for each additional month.3Social Security Administration. Early or Late Retirement Sixty months of early claiming comes out to exactly 30%, and the cut does not reverse when you turn 67.
Claiming at 63 trims the reduction to roughly 25%, and 64 to about 20%. Each year you hold off between 62 and 67 pulls you closer to the full amount.
Claiming at 67
At 67 you receive 100% of your primary insurance amount with no adjustment up or down. Once payments start, they grow with the annual cost-of-living adjustment; the 2026 COLA is 2.8%.4Social Security Administration. Latest Cost-of-Living Adjustment You never have to apply for COLAs; they compound automatically.
Delaying to 70
For every month you wait past 67, Social Security adds a delayed retirement credit of two-thirds of one percent, which works out to 8% per year.5Social Security Administration. Delayed Retirement Credits3Social Security Administration. Early or Late Retirement Credits stop at 70, so waiting from 67 to 70 raises your check by 24% for life. There is no reward for waiting past 70; delaying further just means missed payments.
The break-even point between claiming at 67 and claiming at 70 typically falls around age 80 to 82. If you expect good health and long life, delaying usually wins. If your health is poor or you need the money sooner, earlier claiming can be the better call.
One prerequisite applies at any age: you need 40 work credits (about ten years of Social Security–covered work) to collect at all.6Social Security Administration. Social Security Credits and Benefit Eligibility Most people who worked steadily already have them, but if you spent years working abroad, in certain non-covered government jobs, or outside the paid workforce, verify your credit count in your ssa.gov account before building a plan.
The Health Insurance Problem Between 62 and 65
Medicare does not start until 65. Retiring at 62 leaves a three-year gap you have to cover yourself, and this is where early retirement often falls apart on paper.
- COBRA continuation coverage can extend employer-based insurance for up to 18 months, but you pay the full premium, often $600 to $800 a month or more for an individual.
- Losing job-based coverage triggers a Special Enrollment Period on the Health Insurance Marketplace, giving you 60 days to pick a plan. Premium tax credits may apply depending on your household income.7HealthCare.gov. Health Care Coverage for Retirees
- Getting added to a working spouse’s employer plan is usually the simplest route.
- Low retirement income may qualify you for Medicaid in your state.7HealthCare.gov. Health Care Coverage for Retirees
Watch one trap: voluntarily dropping retiree health benefits from a former employer does not trigger a Special Enrollment Period, so you would wait until the next open enrollment to get Marketplace coverage.7HealthCare.gov. Health Care Coverage for Retirees
If You Plan to Keep Working
Claim before 67 and keep earning, and Social Security temporarily withholds part of your benefit when your wages pass an annual limit. In 2026, if you are under 67 all year, the limit is $24,480 and the agency withholds $1 for every $2 above it. In the calendar year you turn 67, the limit jumps to $65,160 and the withholding drops to $1 for every $3 over, counting only earnings before the month you hit 67.8Social Security Administration. Receiving Benefits While Working From 67 onward, there is no earnings test at all.
Withheld benefits aren’t lost. Social Security recalculates your monthly amount at full retirement age and credits you for the withheld months. Still, if you plan to work substantially between 62 and 67, claiming early frequently makes little financial sense because a large piece of each check will be clawed back.
What Your Decision Does to a Spouse
A spouse who didn’t work (or earned much less) can collect up to 50% of your full retirement age benefit.9Social Security Administration. Benefits Planner – Retirement That spousal amount is anchored to your primary insurance amount at 67, not the reduced or boosted figure you actually receive.
Survivor benefits move with your check. When you die, your surviving spouse can receive up to 100% of what you were collecting. Claim at 62 and lock in a reduced amount, and your spouse inherits the smaller check. Delay to 70 and lock in the maximum, and your spouse inherits the larger one. A surviving spouse can start reduced survivor benefits as early as 60, or 50 with a qualifying disability.10Social Security Administration. Survivors Benefits For couples where one person is likely to outlive the other by many years, that lock-in is often the strongest argument for the higher earner to wait.
Expect Federal Tax on Part of Your Benefit
Social Security benefits are partially taxable at the federal level once your combined income (adjusted gross income, plus nontaxable interest, plus half your benefits) crosses set thresholds.11Internal Revenue Service. Publication 915 – Social Security and Equivalent Railroad Retirement Benefits The thresholds were written into statute decades ago and are not inflation-indexed, so more retirees cross them every year.
- Single filers: combined income from $25,000 to $34,000 means up to 50% of benefits may be taxable; above $34,000, up to 85% may be taxable.12Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits
- Married filing jointly: combined income from $32,000 to $44,000 means up to 50% may be taxable; above $44,000, up to 85% may be taxable.12Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits
“Up to 85% taxable” means that share of your benefit gets added to taxable income, not that 85% disappears to tax. If you also draw a pension or 401(k) withdrawals, expect to cross these thresholds. A small number of states tax benefits as well.
Medicare Is a Separate Deadline at 65
Medicare eligibility has nothing to do with when you claim Social Security. You become eligible at 65 regardless.13Centers for Medicare & Medicaid Services. Original Medicare (Part A and B) Eligibility and Enrollment For a 1968 birth year, that year is 2033.
Your Initial Enrollment Period runs seven months: the three months before your 65th birthday month, the birthday month itself, and the three months after.14Medicare. When Does Medicare Coverage Start Miss that window for Part B without qualifying coverage and the late enrollment penalty adds 10% to your monthly premium for every full 12-month period you were eligible and not enrolled, for as long as you have Part B.15Medicare. Avoid Late Enrollment Penalties> The standard Part B premium in 2026 is $202.90 with a $283 annual deductible.16Centers for Medicare & Medicaid Services. 2026 Medicare Parts A and B Premiums and Deductibles Part A is premium-free for most people with 40 work credits.
If you are still working at 65 with coverage through your or your spouse’s current employer, you can delay Part B without penalty and get a Special Enrollment Period when that coverage ends.17Medicare. Avoid Late Enrollment Penalties COBRA does not count as current-employment coverage for this exception.
Higher earners pay more. If your modified adjusted gross income from two years earlier exceeds $109,000 (individual) or $218,000 (joint) in 2026, Income-Related Monthly Adjustment Amounts raise your Part B and Part D premiums, with Part B reaching $689.90 at the top bracket.18Medicare. 2026 Medicare Costs
Check Your Number, Then File
Before you commit to an age, pull your personalized estimate. A free account at ssa.gov shows projected monthly payments at 62, 67, and 70 based on your actual earnings record, and lets you adjust future income to see what more working years would add.19Social Security Administration. Get a Benefits Estimate Review the earnings record itself while you’re in there. Old reporting errors drag down your benefit if nobody fixes them.
When you’re ready to claim, you’ll need your Social Security number, an original or certified birth certificate, recent W-2s or your self-employment tax return, and your bank routing and account numbers for direct deposit.20Social Security Administration. What Documents Will You Need When You Apply21Social Security Administration. Information You Need To Apply For Retirement Benefits or Medicare Apply online, by phone, or in person at a field office. The earliest you can file is four months before you want payments to begin.22Social Security Administration. More Info – When To Start Benefits Processing can take weeks or months, so filing near that four-month mark leaves room for delays.