Retirees can boost their Social Security payments substantially by avoiding one costly, yet common, mistake.

Americans can claim Social Security benefits as early as age 62. While it may be tempting to begin receiving that monthly income as soon as possible, retirees could leave a lot of money on the table by doing so.

That's because Social Security payments are larger the later retirees claim them.

Someone who claims at age 62 would get a monthly check that's 30% smaller than someone claiming at "full retirement age," according to the Social Security Administration. Full retirement age is 67 for those born in 1960 or later.

Retirees get a monthly paycheck that's 8% larger each year they wait, between ages 62 and 70. These payments are guaranteed, inflation-protected and last as long as an individual lives.

That's why financial experts recommend waiting to claim Social Security as long as possible — age 70, ideally — since claiming early essentially amounts to a penalty. Plus, they wonder where else a retiree could get a guaranteed 8% annual investment return that adjusts with inflation.

"It pays to wait," said Joel Eskovitz, a senior policy advisor with the AARP Public Policy Institute. "It really is the best game in town. You wouldn't be able to beat that on the open market, certainly without taking some risk."