When should you start collecting Social Security?

Two-thirds of Social Security recipients say they rely on their benefits for more than half their income, according to a survey from The Senior Citizen League. Over a quarter said their monthly check represented their entire budget.

You can begin to receive benefits starting at age 62, but you'll get a reduced monthly payment if you don't wait until you're at full retirement age (between 66 and 67, depending on the year you were born). Waiting until 70 can be even more beneficial.

"Don't just call Social Security and apply at age 62," Marc Kiner, a CPA at Premier Social Security Consulting, told CNBC Select. "Everybody has options."

Depending on when they start, a married couple could receive $1.5 million in benefits over their lifetime, Kiner said. "But don't assume that Social Security will review your options with you."

Since the 1980s, the government has been slowly raising the full retirement age (FRA) at which you can collect full Social Security benefits.

If you were born between 1955 and 1959, your FRA is 66 and 10 months. If you were born in 1960 or later, however, it's 67.

Collecting before you hit FRA comes with some drawbacks. Someone born in 1960 who started collecting at 62 would only receive 70% of their FRA payout. At 67, they'd receive 100%.

Waiting until after you reach FRA can be even more financially beneficial. For each year you delay (up to age 70), you collect an additional 8%.

Someone born in 1960 who waited until 70 to apply for Social Security could earn up to 124% of their full benefits, for example. (8% x  3 years = 124%).

Even though your check will be bigger if you wait until age 70 to collect, you'll be missing out on years of benefits. Your break-even point is the age you'd receive more in total Social Security earnings by collecting at full retirement age (or at age 70) than you would by collecting early. 

For many people, the break-even point is around 12 or 13 years after full retirement age or age 70, depending on when they start collecting.

So, if you start collecting at age 62, you would enjoy an additional five years of Social Security benefits, though your checks would be reduced by 30%. If you wait until age 67, you'd break even at 79.

You can use the Social Security Administration's retirement age calculator to determine your break-even number, although it won't account for the annual cost-of-living adjustment or other factors.

Before you decide to collect Social Security based on your break-even point, you should also consider how collecting early or delaying could impact the benefit your spouse receives.

The Social Security benefits formula is based on an individual's 35 highest-earning years. Because of career breaks during motherhood and lower lifetime earnings, women often collect less than men.

However, the Social Security spousal benefit helps reduce the disparity. Available to all spouses, regardless of whether they have a work history or are in a same-sex couple, the spousal benefit is up to 50% of the higher earner's benefit.

For a spouse to receive the benefit, the higher earner must already be collecting their own benefits. The Social Security Administration automatically determines whether an individual would earn more in Social Security benefits based on their own work record or their partner's.

For example, if the higher earner receives $2,000 a month, their spouse is eligible to receive up to $1,000, depending on whether they choose to wait until full retirement age.

For example, if someone collects the spousal benefit four years before full retirement age, their benefit will be 35% of the higher earner's benefits. (Note: If the higher-earner collects their benefit at age 70, the spouse is still only able to collect 50% of the higher-earner's benefit.)

If you're still working and want to collect Social Security benefits before full retirement age, having income will have an impact on the amount of money you receive. For 2026, the income limit for collecting Social Security while working is $24,480 if you are under your full retirement age all year, and $65,160 if you will reach your full retirement age during 2026.

For earnings above these limits, your benefits will be temporarily reduced by $1 for every $2 over the limit for those under full retirement age or $1 for every $3 over the limit for those reaching full retirement age in 2026.

Once you reach FRA, there is no earnings limit.

According to AARP, the estimated average Social Security monthly benefit in 2026 is $2,071. For many retirees, that's just not enough to live on. So, if you haven't started saving for retirement, it's essential to start now so you can take advantage of .

If your company offers an employer-sponsored 401(k) with matching contributions, you should prioritize receiving the match because it's essentially free money.

You might also consider opening an individual retirement account, either a traditional IRA or a Roth IRA, both of which have unique tax benefits.

With a traditional IRA, individuals invest pretax income and don't pay taxes until they withdraw their earnings. With a Roth IRA, individuals invest after-tax money so their withdrawals are tax-free. A Roth IRA is considered a good option for those who anticipate being in a higher income tax bracket in retirement: Rather than paying higher taxes later on, you'll pay taxes on your contributions upfront.

A Roth IRA, however, is not available to everyone. For 2026, the income limit to make a full contribution is $153,000 for individual filers and less than $242,000 for married couples filing jointly. Contributions phase out completely for single filers at $168,000 and for joint filers at $242,000.

If you don't know where to start when it comes to building your retirement portfolio, Wealthfront and Betterment are two of our favorite robo-advisors. Users enter information about their financial goals, investment horizon, and risk level so that the algorithm can create a custom portfolio to match their needs.

To meet your goals, robo-advisors automatically rebalance your portfolio over time by buying and selling assets.

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