Quick Read
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Claiming Social Security at 63 instead of 67 cuts a $3,000 monthly benefit by 25% to $2,250, and cost-of-living adjustments widen the gap yearly.
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Early claiming yields $108,000 upfront, but waiting breaks even around age 79 and pays off most for those who live into their 80s and 90s.
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Clark Howard says drawing on investments in your 60s beats claiming early, and cash or bonds can bridge the gap without selling stocks at a loss.
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A hypothetical 63-year-old retiree’s portfolio leans heavily on big tech stocks. This week he saw the Nasdaq suffer its worst day since April 2025 as AI shares sold off. By Friday, the index had tumbled into correction territory. The Invesco QQQ Trust (NASDAQ:QQQ), which tracks the Nasdaq-100, finished the week down about 5% and is off about 13% over the past month.
His own account may have fallen more or less than the index. Either way, the selloff gives him an idea. He could start Social Security now, live on the checks and give his stocks time to recover. But could protecting his investments today cost him hundreds of dollars a month in Social Security for the rest of his life?
What Claiming at 63 Costs Him
Assume his full benefit at 67, which is the full retirement age (FRA) for people born starting in 1960, is $3,000 a month. The estimated average retirement benefit in January 2026 was $2,071, per the SSA.
If he claims at 63, he gets $2,250, which is 25% less. Social Security takes 5/9 of 1% for each month he claims early, up to 36 months, and a smaller amount for each month beyond that.
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Waiting until 67 adds $750 a month, or $9,000 a year. Waiting until 70 would raise his check to $3,720 before cost-of-living adjustments (COLAs).
