A typical Social Security strategy could cost you $182,000

MoneyWatch This frequently used Social Security strategy could cost you $182,000 .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Aimee Picchi Aimee Picchi Associate Managing Editor, MoneyWatch Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports. Read Full Bio Aimee Picchi Updated on: April 21, 2026 / 8:09 AM EDT / MoneyWatch Add CBS News on Google Americans are fascinated with getting the most out of Social Security, but many retirees are making a strategic mistake that can cost them tens of thousands of dollars in lifetime benefits, according to new research from economists at Boston University and the Federal Reserve Bank of Atlanta. The analysis examines the issue of the optimal age to claim Social Security in order to maximize retirees' lifetime discretionary income, or money after taxes, living expenses and other essential costs. The Social Security Administration pays a worker's full benefits at what it calls "full retirement age," which ranges from 66 to 67 years old, depending on your birth year. But people can also claim Social Security as soon as they turn 62, with the tradeoff of a roughly 30% reduction in their monthly checks. On the flip side, if workers wait to take Social Security until they turn 70, they get a 32% boost in their payments in exchange for holding off. The reality, however, is that only 6% of U.S. workers wait until they turn 70 to claim Social Security, even though the vast majority would be better off to wait until then to trigger their retirement benefits, the researchers found. $182,000 hitThere's a very real price tag to claiming Social Security too early, as the typical worker is leaving about $182,000 in lifetime discretionary income on the table by claiming before the...