Deciding when to start Social Security is one of the most important retirement decisions many people will make.
You can generally begin receiving Social Security retirement benefits as early as age 62. You can also wait until your Full Retirement Age (FRA), or delay benefits as late as age 70 to increase your monthly benefit.
So, what's the best age to start?
There isn't one answer that's right for everyone.
Instead of focusing only on the size of your monthly benefit, consider how Social Security fits into your overall retirement plan. Your health, expected longevity, financial resources, family situation, and tax picture can all influence the decision.
Starting Social Security at 62
Age 62 is generally the earliest you can begin receiving Social Security retirement benefits.
The obvious advantage is that you begin receiving income sooner. That can be especially important if you've retired, have limited savings, need additional monthly cash flow, or have health concerns.
But there is a tradeoff.
When you claim Social Security before your Full Retirement Age, your monthly retirement benefit is generally permanently reduced.
That means starting early gives you more years of payments but smaller monthly checks.
For some retirees, that's a worthwhile tradeoff. For others, waiting may provide greater financial security later in life.
Waiting Until Full Retirement Age
Your Full Retirement Age depends on the year you were born.
Reaching FRA is important because that's when you become eligible for your full retirement benefit based on your earnings history.
Waiting until FRA may be attractive if you have enough income or savings to support yourself without claiming earlier.
But FRA isn't automatically the “right” age to claim either. Depending on your circumstances, delaying even longer may be worth considering.
What Happens If You Wait Until Age 70?
Social Security provides an incentive for delaying retirement benefits beyond Full Retirement Age.
Generally, your retirement benefit increases through delayed retirement credits for each month you delay after FRA, up to age 70.
For someone expecting a long retirement, that larger monthly benefit can become particularly valuable.
Delaying may also be worth considering when one spouse has a substantially larger earnings record because Social Security decisions can have implications beyond one person's monthly retirement check.
There is generally no additional benefit increase from delaying retirement benefits beyond age 70, so waiting past 70 simply to earn additional delayed retirement credits doesn't provide an advantage.
Consider Your Life Expectancy
One important question is something none of us can answer with certainty:
How long will you live?
Someone who lives well into their 80s or 90s may benefit considerably from having delayed Social Security and secured a larger monthly benefit.
Someone with a shorter life expectancy may reach a different conclusion.
Consider your current health, family longevity, and lifestyle when evaluating your options. These factors can't predict the future, but they can help you make a more informed decision.
Don't Focus Only on the “Break-Even” Age
People frequently compare claiming ages by calculating a break-even point.
The idea is fairly simple.
If you claim early, you collect smaller checks for additional years. If you delay, you give up those early payments in exchange for larger checks later.
Eventually, the cumulative value of the larger payments may catch up with the benefits you could have received by claiming earlier.
That's useful information—but it shouldn't be the only consideration.
Social Security isn't simply an investment you are trying to maximize. For many retirees, it is an important source of income they cannot outlive.
The value of having a larger guaranteed monthly benefit in your 80s or 90s may therefore deserve just as much consideration as the mathematical break-even point.
Consider Your Spouse and Family
If you're married, your Social Security decision shouldn't necessarily be made independently of your spouse's.
Depending on your circumstances, Social Security benefits may include retirement, spousal, survivor, and certain dependent benefits.
For married couples, it can therefore be helpful to think of Social Security as a household retirement-income decision rather than two completely separate individual decisions.
The claiming strategy that produces the largest immediate benefit isn't always the strategy that provides the strongest long-term protection for the household.
Don't Forget About Taxes
Social Security also needs to be considered alongside your other income.
Depending on your circumstances, some of your Social Security benefits may be subject to federal income tax.
Retirement-account distributions, pensions, wages, investment income, and other sources of income can affect your overall tax picture.
This creates opportunities for tax planning.
For example, the years between retirement and beginning Social Security may provide an opportunity for some taxpayers to strategically withdraw money from retirement accounts or evaluate Roth conversions.
The best strategy depends on your individual circumstances, but it's another reason to consider Social Security as part of a broader retirement and tax plan.
Five Questions to Ask Before Claiming Social Security
Before filing for benefits, consider these questions:
Do I need Social Security income right now?
What is my health and reasonable life expectancy?
What other retirement income and assets do I have available?
How could my decision affect my spouse or family?
How does the timing of Social Security affect my overall tax strategy?
Answering these questions may provide considerably more insight than simply asking which claiming age produces the biggest check today.
So, When Should You Start Social Security?
For some people, age 62 will make sense.
Others may benefit from waiting until Full Retirement Age. And for some retirees, delaying until age 70 may be an important part of creating more reliable income later in retirement.
The important thing is to make the decision intentionally rather than automatically.
Social Security interacts with many other parts of your financial life—including retirement accounts, taxes, Medicare, employment, investments, and your spouse's retirement strategy.
A decision that looks best when Social Security is considered by itself may look very different when incorporated into your complete retirement plan.
Before You File, Consider the Bigger Picture
If you're approaching retirement, this is a good time to coordinate your Social Security decision with your tax and retirement-income strategy.
Our office can help you evaluate the tax side of retirement planning and understand how the timing of Social Security may interact with retirement distributions, Roth conversions, investment income, and other sources of taxable income.
Contact our office if you'd like to discuss your retirement tax-planning opportunities before you begin Social Security.
This article is intended for general educational purposes only and is not individualized tax, legal, investment, financial, or Social Security advice. Social Security rules and individual benefit calculations vary and are subject to change. Consult the Social Security Administration and your appropriate professional advisors regarding your individual circumstances.