How to Decide When the Timing is Right for You
If you’re getting close to retirement, chances are you’ve wondered: “When should I start taking Social Security?”
It’s one of the most common questions I hear, and also one of the most misunderstood. You’ve probably heard that waiting gets you more. And while that’s true on paper, it’s not always the right answer for you. If we knew exactly when our final day was, it would be a much easier question. However, most of us would prefer not to know that, so there is an art involved to making this decision.
So let’s walk through the pros and cons of taking benefits early, waiting until full retirement age, or even holding off until age 70.
Taking Benefits Early (As Soon as Age 62)
Why people choose this route:
- They need the income now
- They may have health concerns or shorter life expectancy
- They have higher expenses on the front end of retirement
What to consider:
- You’ll receive less each month, up to 30% less, than if you waited until full retirement age
- If you’re still working, your benefits may be reduced
- Taking benefits early could mean less lifetime income if you live into your 80s or beyond
This path often makes sense for those retiring early without other strong income sources, or those who may not live long enough to benefit from waiting.
Waiting Until Full Retirement Age (66–67)
What’s the benefit?
- You get your full benefit with no reduction
- There are no earnings limits if you keep working
- It creates a solid foundation for income, especially when paired with a pension or investments
This tends to work well for those in good health, with enough savings to bridge the gap, and who don’t want to risk drawing down investments too fast.
Delaying Until Age 70
Why some choose to wait:
- For every year you delay past full retirement age, your benefit increases by about 8%
- That higher monthly check could be a big deal later in life
- It can also mean a larger survivor benefit for a spouse
- They are using a Roth Conversion strategy to reduce future RMD’s.
But — and this is key — you have to be able to afford the wait. You’ll need other sources of income to cover the gap, like savings, part-time work, or a pension. And if your health isn’t great, you might not live long enough to see the payoff.
So, What’s the Right Age for You?
Here’s how I help clients think it through:
| If this sounds like you… | You might consider… |
|---|---|
| “I need income now.” | Taking it early (62–64) |
| “I’m healthy and want to maximize benefits.” | Waiting until 70 |
| “I want to balance taxes, income, and flexibility.” | Claiming around full retirement age |
| “I want to protect my spouse if I pass first.” | Delaying for higher survivor benefits |
A Final Word
There’s no perfect one size fits all answer. Social Security is just one part of the retirement equation. Timing it right can mean tens of thousands of dollars in extra income over your lifetime.
If you’re unsure what’s best for your situation, it helps to look at the full picture: your other income sources, taxes, life expectancy, and how your decisions affect your spouse.
I help people walk through this every day — and the peace of mind that comes with having a clear plan is hard to beat.
