Understanding your Social Security claiming age

Quick answer: What happens when you claim?

Timing your Social Security claim changes your monthly benefit for the rest of your life. If you were born in 1960 or later, your full retirement age is 67. Claiming at age 62 results in a permanent 30 percent reduction in your monthly check. If you wait until age 70, your check increases by 8 percent for every year you delay past your full retirement age. For residents in Cary and the Triangle, North Carolina does not tax these benefits at the state level, making Social Security a unique part of a local retirement plan compared to taxable 401(k) or IRA withdrawals.

The basics of full retirement age

The Social Security Administration (SSA) uses a specific age to determine when someone is entitled to their full, unreduced benefit. This is called your Full Retirement Age (FRA). While this was once age 65, it has gradually increased to 67 for anyone born in 1960 or later. The amount you are entitled to at this age is your Primary Insurance Amount, or PIA.

Knowing your exact FRA is the first step in planning. Here is the breakdown based on birth year:

• Born 1943 to 1954: Age 66
• Born 1955: Age 66 and 2 months
• Born 1956: Age 66 and 4 months
• Born 1957: Age 66 and 6 months
• Born 1958: Age 66 and 8 months
• Born 1959: Age 66 and 10 months
• Born 1960 or later: Age 67

If you were born on January 1, the SSA rules suggest looking at the age requirement for the previous year. This baseline benefit allows you to see how early or late filing changes the actual numbers.

Claiming at age 62: The cost of early filing

The earliest age to claim retirement benefits is 62. Many people in the Triangle choose this because they want the income immediately or have stopped working. The trade-off is a permanent reduction in the monthly amount.

When you file at 62 and your full retirement age is 67, your benefit is reduced by 30 percent. For example, if you would have received 1,000 dollars a month at age 67, your monthly check would be 700 dollars if you claim at 62. This reduction stays with you for life. It also sets a lower baseline for any cost-of-living adjustments that occur in the future. You get your checks earlier, but each check is smaller since you are expected to receive them over a longer period.

Waiting until age 70: Delayed retirement credits

Waiting beyond your full retirement age to file for benefits earns you delayed retirement credits. For people born in 1943 or later, your benefit increases by 8 percent for every full year you delay past your FRA.

These credits stop accumulating when you reach age 70, so there is generally no reason to wait longer to begin. If your FRA is 67 and you wait until 70, your monthly check would be 24 percent higher than if you had claimed at 67. Using the previous 1,000 dollar example, delaying until age 70 would result in a monthly check of approximately 1,240 dollars.

The local factor: How North Carolina taxes Social Security

For residents of Cary, Apex, and Raleigh, there is a specific tax advantage to Social Security income that does not apply to most other retirement accounts. According to the North Carolina Department of Revenue (NCDOR), our state does not tax Social Security benefits.

When you file your North Carolina state return, you can deduct the portion of your Social Security benefits that were taxed at the federal level. This is different from traditional 401(k) or IRA withdrawals, which are generally subject to state income tax. This difference can change the actual purchasing power of your benefits. While the federal government may tax part of your benefits depending on your total income, your North Carolina state tax bill ignores this income stream entirely.

Other factors that change the answer

The timing decision involves more than just the monthly amount. Several other factors can change what makes sense for your household:

• Working while claiming: If you claim benefits before your full retirement age and still have earnings, your checks may be temporarily reduced. In 2026, the limit for those under FRA for the whole year is 24,480 dollars. If you reach your FRA in 2026, the limit is higher at 65,160 dollars for the months before you reach that age.
• Health and longevity: If you expect to live a long life, waiting for a larger monthly check might result in more total lifetime income. If health concerns exist, claiming earlier may be more practical to ensure you receive the benefit.
• Spousal and survivor benefits: Decisions you make about your own benefit can affect what a surviving spouse receives later. Many couples in Cary coordinate their filing ages to maximize the total income the surviving spouse will receive.

Questions to ask before you file

Because the claiming decision is usually permanent after the first year, gather information before talking to a professional or visiting a local Social Security office. Consider these points:

• What is my estimated monthly benefit at 62, 67, and 70? You can find this on your my Social Security account at the SSA website.
• Do I have other sources of retirement income that allow me to wait for a larger check?
• Will I be working while I receive my check, and will my income exceed the 2026 earnings test limits?
• How does my choice affect my spouse's future survivor benefit?
• Have I checked how the North Carolina state tax deduction helps my general cash flow?

Deciding when to claim Social Security is a personal choice based on your financial needs, your health, and your family goals. While waiting increases the monthly check, every household in the Triangle has different priorities. This site provides education to help you understand these options, but we do not provide individualized financial, insurance, tax, or legal advice. To make a choice based on your specific situation, it is best to speak with a qualified professional. If you have a general question about how these rules work, you can use our Ask a Question page for more information.