When Should I Take Social Security?
Nearing retirement brings many questions, and one of the biggest is: When should you start taking Social Security benefits? It's a decision that can feel daunting because it impacts your long-term financial security and lifestyle in retirement. Some people want to claim as soon as they're eligible, while others plan to hold off for a few years. The truth is, there's no universal answer. In this blog, we'll have a look at the pros and cons of taking Social Security early versus waiting, why your personal situation matters most when to start planning, and what the future of Social Security might look like. By the end, you'll have a clearer idea of how to approach this important part of retirement planning.
Taking Social Security Early: Pros and Considerations
Early Eligibility (Age 62). You can start Social Security as early as age 62, and many people do. In fact, for years the most common age to claim benefits has been 62. Why? Because there are some real advantages to tapping into your benefits as soon as possible. Here are a few reasons you might consider an early claim:
More Years of Income to Enjoy: By starting benefits at 62 (or any time before your full retirement age), you begin receiving checks sooner. That means more total years of payments coming in. You get to enjoy that money in your early retirement years — typically when you're healthier and more active, and can use the extra income for travel, hobbies, or spoiling the grandkids. As the Social Security Administration (SSA) puts it, the advantage of taking benefits early is getting them for a longer period of time (Benefits Planner: Retirement | Retirement Age and Benefit Reduction | SSA). If you have plans for your 60s and want income to support those plans, starting early may provide that cash flow.
Personal Health Considerations: Another reason to take benefits early is if you have reason to believe you might not live into your late 80s or 90s. Social Security is essentially a longevity-based program — the longer you live, the more you collect. If you have serious health issues or a shorter life expectancy, claiming early ensures you receive benefits for as many years as possible. In purely financial terms, there's a "break-even" point in your late 70s or early 80s when waiting longer surpasses taking benefits early. But if you don't expect to reach that point, claiming at 62 could maximize what you get out of the system. A 2020 report noted that if a retiree expects to live a shorter-than-average life, a younger claiming age can yield higher total lifetime benefits for that individual (Social Security Claiming Age: Importance, Claiming Behavior, and Trends | Bipartisan Policy Center).
Avoiding Drawdown of Other Savings: Taking Social Security early can also be part of a broader financial strategy. If you've retired from your job in your early 60s and need income, claiming Social Security can reduce the need to withdraw from personal retirement accounts (like a 401(k) or IRA) too soon. Some folks prefer to take the guaranteed Social Security income first, so they can let their investments grow a bit longer or at least preserve their nest egg for later in retirement or for emergencies. Early Social Security can serve as a supplement to bridge the gap if you retire before other income streams (like pensions or required IRA withdrawals) kick in and supplement health insurance cost before Medicare eligibility.
The Downside – Reduced Monthly Benefits. It's important to understand that taking benefits early comes with a trade-off: your monthly check will be smaller and the reduction can be significant. For example, if your full retirement age (FRA) is 67 (which is the case for anyone born in 1960 or later), starting Social Security at 62 means a 30% reduction in your monthly benefit amount (Benefits Planner: Retirement | Retirement Age and Benefit Reduction | SSA). In other words, you'd get only about 70% of the full benefit you earned and this reduction is permanent. While you'll receive more monthly payments by starting early, each payment is lower than if you had waited.
To put it in perspective, someone with an FRA benefit of $1,000 a month would only get around $700 a month if they claim at 62 (Early or delayed retirement). That's a big difference in steady income. So, you need to weigh the immediate income now against the smaller check you'll have to live on later.
Lifestyle and Needs Now vs. Later. Ultimately, deciding to take Social Security early often depends on your current financial needs and lifestyle desires. If you need the money now to cover expenses because you retired early or lost your job, it may make sense to start benefits. Or perhaps you want to use the extra money in your 60s to enjoy life while you can – take that big trip, start a business, help family, or have extra peace of mind from a steady check. These are valid reasons to begin early. Just remember that by doing so, you're locking in a lower monthly benefit for the rest of your life (and potentially your spouse's life, if you’re married and leave behind survivor benefits).
Before you make the decision to file early, consider talking it through with a financial planner and running some numbers. What would your income look like at 62 vs. 67 vs. 70? How would your other savings fill the gaps? Deciding at 62 doesn't have to be an automatic choice or a reaction to fear that "Social Security might run out" (we'll address that concern later). It should be a conscious decision made in the context of your overall retirement plan.
Delaying Social Security: Pros and Considerations
On the flip side, what if you wait to claim Social Security? You don't have to take benefits at 62. In fact, for every year (and month) you delay past your earliest eligibility, your monthly benefit increases. Waiting can significantly boost your retirement income — if you have the resources (or income from a job or savings) to delay.
Here are some of the key advantages of delaying Social Security:
Higher Monthly Benefits for Life: The longer you wait (up to age 70), the larger your monthly check. Social Security's formula includes delayed retirement credits that reward you for postponing. If your full retirement age is 67 and you wait until age 70, your monthly benefit will be about 24% higher than at FRA. Compared to age 62, the increase is even more dramatic. For our earlier example, a $1,000 FRA benefit becomes roughly $1,240 a month at 70 (Early or delayed retirement). That's a 77% jump in monthly income compared to the $700 someone would get by claiming at 62. In essence, each year you wait beyond FRA yields roughly an 8% increase in benefits (plus cost-of-living adjustments in the interim). This is a powerful growth rate for a guaranteed, lifelong income source (5 Things You May Not Know About Social Security — Fortress Financial Group ). Few investments can promise that kind of steady, risk-free increase, which is why delaying if you can afford to is advantageous.
Greater Lifetime Benefits (If You Live Longer): While nobody has a crystal ball on their lifespan, delaying Social Security is generally a form of longevity insurance. If you live into your 80s or 90s, a higher monthly benefit will likely result in more total dollars received over your lifetime compared to taking a smaller benefit early. Thanks to longer life expectancies today, claiming at a later age now nets the average retiree more total lifetime benefits than claiming early (Social Security Claiming Age: Importance, Claiming Behavior, and Trends | Bipartisan Policy Center). One scholarly study found that virtually all American workers age 45-62 would accumulate more lifetime income by waiting beyond age 65 to claim, and over 90% would do best to wait until age 70 (How Much Lifetime Social Security Benefits Are Americans Leaving On the Table? | NBER). In practice, of course, not everyone can wait that long, but those statistics highlight how valuable the delay can be for maximizing what you get from Social Security over decades. If you’re in good health and have a family history of longevity, waiting could substantially increase the cumulative amount you receive.
Longevity and Survivor Protection: A big reason to consider waiting is to protect against outliving your other assets. Social Security is one of the few sources of guaranteed income for life that also rises with inflation. By locking in a larger monthly benefit, you reduce the risk of running short on income if you celebrate your 85th, 90th, or 95th birthday. Moreover, if you are married, delaying benefits can increase the survivor benefit that one of you will receive if the other spouse passes away. The survivor (typically the one who outlives the other) is entitled to the higher of the two spouses' benefits. So, if you as the higher earner wait until 70 and lock in a big benefit, your spouse would get that larger amount as a survivor benefit. This can be a crucial form of financial protection for a widow or widower later in life. As one retirement study explains, claiming later provides income security if the claimant lives longer than expected and could provide a higher survivor benefit to a spouse (Social Security Claiming Age: Importance, Claiming Behavior, and Trends | Bipartisan Policy Center). This is an important consideration for couples thinking long-term.
Flexibility to Work Longer (and Increase Benefits Even More): Many people choose to keep working into their late 60s, either because they enjoy it or want to build a bigger financial cushion. If you continue to work and delay Social Security, two things happen: (1) you avoid the earnings penalty that applies if you work while taking early Social Security (a reduction in benefits before FRA), and (2) your additional years of earnings could potentially increase your eventual benefit (since Social Security calculates your benefit based on your highest 35 years of earnings). Delaying benefits while still earning income can be a win-win for your future benefit size. By waiting until you stop working (or until age 70), you ensure you get the maximum Social Security benefit owed to you, with no reductions. After age 70, there’s no further increase for waiting longer, so age 70 is generally considered the latest you should file.
All that said, delaying Social Security isn't the right move for everyone. The obvious drawback is that you forego receiving benefits for a number of years. You’ll need to have other income sources or savings to cover your expenses in the meantime. Not everyone has a pension or enough savings to comfortably delay claiming Social Security. Additionally, if you have health concerns or simply really need the income sooner, it might not make sense to wait. Remember that the primary benefit of waiting is felt later in retirement; you sacrifice income now for more income in your 80s+. If your financial need is immediate, that trade-off may not be feasible.
It’s also worth noting that the “average” outcomes and break-even analyses are based on life expectancy statistics. If you unfortunately end up not living as long as expected, waiting could mean you get fewer total payments. That’s why your personal health and circumstances are so important in this decision. Weighing the guaranteed higher income later against your current needs and wants is the crux of deciding whether to delay. Often, a compromise approach is to at least wait until your full retirement age (66 or 67, depending on your birth year) so you avoid the early filing reduction, and then decide if you can wait a bit more for the delayed credits.
No One-Size-Fits-All: Personal Circumstances Matter
By now you can see that taking Social Security at 62 versus 70 can lead to very different outcomes. Neither option is inherently "right" or "wrong — the best time to claim really depends on your individual circumstances. This is why one person’s strategy might not fit another person at all. Here are some key personal factors to consider when timing your Social Security:
Health and Life Expectancy: Perhaps the most important factor. Be honest about your health and family longevity. If you’re in excellent health and your parents lived into their 90s, you might lean toward delaying benefits to maximize that higher age-70 payment for what could be a long retirement. On the other hand, if you have serious medical issues or a shorter expected lifespan, claiming earlier could ensure you get the most out of Social Security while you can (Social Security Claiming Age: Importance, Claiming Behavior, and Trends | Bipartisan Policy Center). Think about your quality of life as well — will the extra income now meaningfully improve your life in your 60s? Or would a larger check in your 80s be more valuable for potential medical or long-term care costs?
Financial Need and Other Income Sources: Your overall financial situation is key. Do you have sufficient retirement savings, investments, or perhaps a pension to support you if you delay Social Security? If you can comfortably pay your bills from other sources (or by working part-time) at 62 or 65, then you have the flexibility to wait and let your benefit grow. However, if Social Security will make the difference in covering your basic expenses, that might push you to claim as soon as you're eligible. Create a budget and a retirement income plan to see where Social Security fits in. Social Security was never meant to be your sole source of income, but for many it’s a substantial portion of their cash flow in retirement. Each person's mix of income (investments, savings, work, Social Security) is unique, so your claiming decision should fit into that bigger puzzle.
Retirement Age and Employment Plans: Are you retiring from full-time work as soon as you hit 62? Or do you plan to keep working into your late 60s? If you retire early, you might need Social Security sooner for income. But if you keep working, it often makes sense to delay benefits, not only to avoid benefit reductions (if under FRA) but also because your salary is providing for you. Keep in mind, if you claim benefits before your full retirement age and continue to work, Social Security will temporarily withhold some of your benefits if your earnings are above certain limits (for example, a bit over $21,000 per year in the years before FRA) (How Part Time Work Affects Social Security Benefits — Fortress Financial Group ). This doesn't permanently reduce your benefit (SSA recalculates it later), but it’s something to be aware of. Many retirees today work part-time, so factor that into your timing. (For more on this, see our related blog post "How Part Time Work Affects Social Security Benefits," which dives into the earnings limits and tax implications of working while on Social Security.)
Marital Status and Spousal Benefits: If you're married (or were married), Social Security has some additional layers. Spouses can qualify for benefits based on each other’s records, and a surviving spouse can receive the deceased spouse’s benefit if it's higher. This means couples should coordinate their claiming strategies. For instance, it often makes sense for the higher-earning spouse to delay as long as possible, to lock in a larger benefit that the surviving spouse will inherit. The lower-earning spouse might claim earlier if needed. If you’re single, you only have to consider your own lifespan and finances. If you’re married, you have two lifetimes to plan for. Also, divorced people (married at least 10 years) and widows/widowers have special claiming rules that can influence timing. The key is that your Social Security decision doesn’t happen in a vacuum – consider its impact on your partner or dependents.
Lifestyle Goals and Preferences: Finally, think about what you want your retirement to look like. Some people say, "I want to take it early and enjoy the money while I’m young enough to travel and have fun." Others say, "I’m worried about being old and having limited income, so I’d rather have the bigger check later, even if it means tightening my belt a bit now." Neither viewpoint is wrong. Your personal philosophy, risk tolerance, and retirement dreams play into this decision. Just try to base the decision on a clear assessment of your finances and not just on a gut feeling or what a friend did.
The SSA underscores that each person's situation is different and you should “consider factors that may affect your planning” when deciding when to start benefits (Benefits Planner: Retirement | Retirement Age and Benefit Reduction | SSA). That might include your savings, debts, health insurance (for example, affording to wait until Medicare at 65), and so on. It's a highly personal choice, and it's okay if your answer is not the same as your neighbor's or coworkers.
If you're struggling with the decision, this is a perfect topic to discuss with a financial planner. They can run personalized projections (often called a "Social Security optimization analysis") to show you the trade-offs in dollars and cents. Sometimes, seeing the numbers for your specific case can make the choice clearer. The goal is to integrate Social Security into your retirement plan in the way that best meets your needs and goals.
When Should You Start Planning Your Social Security Strategy?
You don't need to wait until you're 61 years and 11 months to think about Social Security. In fact, it's better if you start planning a bit earlier. So, when is the right time to plan?
The answer will vary, but a good rule of thumb is to start incorporating Social Security into your retirement planning a few years before you retire, or by your early 60s at the latest. It is good practice when you’re in your mid-50s or early 60s to review your Social Security earnings statement (you can get this online anytime from the SSA) which gives an estimate of your benefit at 62, at full retirement age, and at 70. This gives you a baseline for decision-making.
If you have roughly 5-10 years until retirement, it’s an excellent time to model different scenarios. Ask yourself:
What if I retire from my job at 62? How will I bridge income to my FRA or to 70?
What if I work until 67? How much more will I save, and how does that affect needing Social Security?
Do I have any gaps in my understanding of benefits (for example, spousal benefits, taxes on benefits, etc.) that I should learn more about now?
Starting to answer these questions in your 50s or early 60s can help you make a more confident decision later. It's much better to have a strategy in mind at least a year or two before you actually file for benefits, rather than making a rushed choice at the last minute. In one of our earlier blog posts, "6-12 Months Before Retirement," we recommend taking that time to determine the optimal time to start claiming Social Security, with the help of your financial advisor, so you aren't scrambling right before your retirement date. Essentially, the sooner you start thinking about it, the better prepared you'll be.
That said, you don't have to obsess about Social Security in your 40s — there are many other retirement planning priorities at that stage (like saving and investing). But by the time you're within, say, 5 years of retirement, Social Security should be on your radar. At minimum, about a year before retirement (or age 62), you should have a preliminary plan: either you're planning to claim right away or planning to delay, and know how you'll fund your lifestyle in the meantime.
Keep in mind also the Medicare timeline: even if you delay Social Security past 65, you'll want to sign up for Medicare at 65 to avoid penalties. This is why many people coordinate their Social Security start date with Medicare or retirement from work. It can get complex, so mark your calendar with key ages (62, 65, FRA, 70) well in advance.
In short, don't leave the Social Security decision to a whim. Educate yourself (you're already doing that by reading this!), talk with professionals, and factor it into your overall retirement game plan. Social Security is a significant piece of the retirement income puzzle for most people, so it deserves some thoughtful planning ahead of time.
Will Social Security Be Around in the Future?
A common concern that pops up in these discussions is the future of Social Security itself. Many near-retirees worry, "Is Social Security going to run out of money? Should I claim as soon as possible because it might not be there later?" This is an understandable fear, given news headlines about trust fund shortfalls. Let's address it with facts and context.
First, Social Security is funded through a trust fund system that collects payroll taxes from current workers to pay benefits to retirees. Over the years, the program has occasionally collected more than it paid out, building a surplus (trust fund reserves), and in other years it pays out more than it collects, drawing on those reserves. According to the latest official projections, Social Security's trust funds are expected to be depleted around the year 2035 (Summary: Actuarial Status of the Social Security Trust Funds). That means if no changes are made, by 2035 the reserves will be used up. However – and this is crucial – even at that point Social Security is not “bankrupt” or out of money entirely. The program will continue to receive payroll tax income from workers. The Social Security Administration estimates that after 2035, the incoming revenue would still be enough to pay about 83% of scheduled benefits initially, gradually decreasing to around 73% by the late 2090s (Summary: Actuarial Status of the Social Security Trust Funds). In other words, even if nothing is done, Social Security could still pay the majority of benefits owed (albeit with a roughly 17% shortfall).
To put it simply, Social Security is highly unlikely to disappear. The worst-case scenario, if Congress took no action, is that beneficiaries might face a benefit reduction of around 20% or so in the 2030s. However, Congress has a long history of making adjustments to keep Social Security solvent, and there is immense political pressure to protect this vital program. Remember that Social Security benefits provide the majority of retirement income for about half of older Americans (The Importance of Social Security Benefits to the Income of the Aged Population). It's a foundational source of support that keeps millions of seniors out of poverty. Policymakers are well aware of how many people depend on Social Security, and that dependence makes it politically difficult to allow drastic cuts.
In fact, experts have proposed and debated various solutions to address the future shortfall. These include measures like gradually raising the full retirement age further, adjusting the formula that determines benefits, or increasing the payroll tax rate or the taxable wage cap. According to Social Security’s Chief Actuary, the projected shortfall is largely a result of demographic changes (lower birth rates leading to relatively fewer workers per retiree), and relatively modest adjustments to taxes or benefits could restore the program's long-term solvency (Research: The Future Financial Status of the Social Security Program). For example, a mix of a slight payroll tax increase and a slow increase in FRA could fill the gap. While there's no consensus in Congress yet on the exact fix, there is broad agreement that something must be done before the trust fund depletion date. We’ve seen this happen before – the last major reform was in 1983 when the program faced a similar crunch, and changes were enacted to secure its future (including gradually raising the FRA to 67 for people born after 1960).
For those nearing retirement now (say, in your late 50s or 60s), it’s very likely that you will get your full benefits as promised. Any future changes to Social Security are more likely to affect younger workers (for instance, someone in their 30s or 40s today might see a tweak in benefits by the time they retire, such as a higher FRA or different cost-of-living adjustments). It's less likely that Congress would cut benefits for current retirees or those about to retire, as they have planned their lives around the current rules. In summary, Social Security will be around, but it will face financial challenges that need addressing. You should plan as if you'll receive your benefit (perhaps with a little caution in long-range projections, like maybe assume slightly smaller COLA increases or have a backup plan for a mild cut if you're particularly conservative in planning).
The bottom line: don't let the fear of Social Security disappearing drive you to make a poor claiming decision. Claim because it fits your plan and needs, not just because you're scared it won’t be there later. All indications are that the program will continue, and that current and near-future retirees will get their benefits largely as expected. The system may be tweaked, but it's not going to vanish – it’s far too important to too many Americans.
Making the Decision & Next Steps
Deciding when to take Social Security is one of the most personal decisions in retirement planning. There are clear pros and cons to both early and late claiming, and as we've discussed, a lot depends on your health, financial picture, and priorities. It’s not a one-size-fits-all situation. The best thing you can do is educate yourself (hopefully this article has helped), crunch the numbers for your scenario, and possibly consult with a financial planner who can tailor advice to you.
If you're feeling unsure about what strategy is right for you, you don't have to figure it all out alone. At Fortress Financial Group, we specialize in helping individuals nearing retirement navigate decisions exactly like this. We can analyze your Social Security options in the context of your overall financial plan – factoring in your savings, pension, budget, and goals – to recommend an optimal approach. Sometimes, just having an expert to talk it through with can bring confidence that you're making the right choice.
Keep in mind that Social Security is just one piece of the retirement puzzle (albeit a big piece). A comprehensive plan will also consider your investments, tax strategies, healthcare costs, and estate planning. Timing your Social Security benefit well can complement these other elements and set you up for a more secure retirement.
So, when should you take Social Security? The answer is: when it makes the most sense for you. We hope this discussion has given you a clearer understanding of what to think about as you make that decision. If you'd like personalized guidance, feel free to reach out to our team at Fortress Financial Group. We're here to help you craft a retirement plan – including a Social Security strategy – that fits your unique life.
For further reading on Social Security and retirement planning, you might enjoy some related posts on our blog, such as "5 Things You May Not Know About Social Security" (which covers some interesting facts and rules that can influence your benefits) and "How Part Time Work Affects Social Security Benefits" (useful if you plan to work in retirement while drawing benefits).
Planning for retirement can feel overwhelming, but with the right information and support, you can make decisions with confidence. When it comes to Social Security, take your time, weigh your options, and choose the path that aligns best with your needs and dreams for the future. And remember, we're just a phone call or email away if you need help making sense of it all. Here’s to a comfortable and rewarding retirement!
Disclosures:
Fortress Financial Group LLC (“FFG") is a registered investment advisor. Advisory services are only offered to clients or prospective clients where FFG and its representatives are properly licensed or exempt from licensure. For current FFG information, please visit the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with FFG’s CRD# 315329
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
