When Should You Claim Social Security? A Guide to Making the Right Decision

Deciding when to claim Social Security is one of the most important financial choices you’ll make in retirement. While you can start receiving benefits as early as age 62, waiting until full retirement age—or even delaying until age 70—can significantly impact your monthly income and overall financial freedom. There’s no one-size-fits-all answer, but understanding your options can help you make the best decision for your unique situation.  

Understanding Your Social Security Benefits

Social Security benefits are based on your 35 highest-earning years and the age at which you begin claiming. Here’s how timing affects your payments:  

Claiming Early (Age 62-66)  

• You can start benefits as early as 62, but your monthly check will be permanently reduced—by as much as 30% compared to waiting until full retirement age.  

• This might be a good option if you need income immediately or have health concerns that could shorten your lifespan.  

Full Retirement Age (66-67, Depending on Birth Year)

• Claiming at full retirement age means you receive 100% of your calculated benefit.  

• If you're still working, you won’t face penalties for earning income.  

• This can be a solid choice if you need the income but want to avoid reductions.  

Delaying Until Age 70

• • • • For every year you delay past full retirement age, your benefit grows by about 8% per year.  

      • Delaying maximizes your monthly benefit, making it a great option for those who expect a long retirement.  

      • This strategy can provide financial freedom later in life, especially for those without other sources of income.  

Key Factors to Consider When Claiming

1. Your Health and Longevity

• If you have a family history of longevity or are in good health, waiting to claim can provide greater lifetime benefits.  

• If health issues are a concern, claiming earlier may make more sense.  

2. Other Sources of Income

• • • • If you have a pension, investment income, or other retirement savings, you may have the flexibility to delay claiming Social Security.

      • If Social Security will be your primary income source, you may need to claim earlier.  

3. Employment Status

• • If you claim before full retirement age and continue working, your benefits may be temporarily reduced due to the earnings limit.  

  • After full retirement age, you can work without reductions in benefits.  

4. Spousal and Survivor Benefits

• • • • If you’re married, coordinating benefits with your spouse can help maximize your total household income.  

      • Survivor benefits allow a surviving spouse to receive the higher of the two spouses' benefits, making delayed claiming an attractive option for couples.  

5. Break-Even Analysis

• • • • A break-even analysis can help determine how long you need to live to make delaying Social Security worthwhile. For example, if you delay benefits until 70, you typically "break even" in your early 80s.  

Making the Right Decision

There’s no universal answer, but your choice should align with your overall retirement strategy. If you’re unsure when to claim, our financial planning tool can help you analyze different scenarios and their long-term impact.  

Claiming Social Security is a major decision that requires careful thought. By considering your health, financial situation, and long-term goals, you can choose a strategy that seeks to maximize your retirement income and financial freedom.  

Ready to make an informed decision? Our team can help you evaluate your options and build a personalized plan. Contact us today to get started.