Deciding when to take your Social Security benefit is one of the most important choices you’ll make when planning for retirement. While it’s just a small piece of a much larger income planning strategy, the timing of your decision can have a meaningful impact on your long-term financial security and well-being.
In some cases, the decision is straightforward. However, more often there are multiple factors to weigh in order to maximize your benefits and align them with your overall Living Financial Plan™.
So, when should you take your Social Security?
Well, it depends.
There are three primary stages to consider when deciding when to claim your benefits: Early Retirement, Full Retirement Age (FRA) and Delayed Retirement. Depending on your birth year, this will dictate when you enter each of the three stages which will factor into when you claim benefits.
Early Retirement (Age 62 to FRA)
You may begin claiming Social Security as early as age 62, which is considered, early retirement. By claiming benefits early, benefits are reduced permanently. Early retirement is considered from age 62 until Full Retirement Age.
Claiming early can make sense for those who want or need to retire sooner and would benefit from having a steady source of income. It may allow you to preserve other retirement assets.
There are some trade-offs when it comes to claiming early. Not only is your benefit reduced, but if you continue working and earn above certain income thresholds, your benefits may be reduced even further.
To find your Full Retirement Age based on your birth year, visit the Social Security Administration website: https://www.ssa.gov/benefits/retirement/planner/agereduction.html
Full Retirement Age (FRA)
Full Retirement Age or FRA is when you may collect your full retirement benefits without any reductions. As we mentioned above, your FRA is based on the year you were born.
At FRA, you can also earn unlimited income without any reduction in benefits. Your benefits may still be subject to taxation depending on your overall income.
Delayed Retirement (FRA to Age 70)
Once you reach full retirement age and delay your benefits, you enter the third stage which is Delayed Retirement. If you delay taking Social Security beyond your Full Retirement Age, your benefit increases 8% per year through delayed retirement credits. This means the longer you wait to receive benefits, the more the benefit amount will be. This growth continues until age 70, at which point benefits no longer increase.
Delaying benefits can result in higher monthly payments that can be valuable for longevity planning. The trade-off here is it may require you to rely more heavily on your personal savings or entice you to work longer than you want to get this higher benefit.
Once you understand the different stages of claiming Social Security, it’s important to look at some other factors that might influence your decision on when to take your benefits. Those factors include:
- Earnings History
- Marital Status
- Survivor Benefits
- Health Status/Disabilities
- Life Expectancy
- Tax Implications
- Other Assets and Income
Let’s break down each of these factors.
Earnings History
Social Security benefits are calculated by taking your highest 35 years of earnings, adjusted for inflation. https://www.ssa.gov/oact/cola/Benefits.html#:~:text=Social%20Security%20benefits%20are%20typically,are%20paid%20to%20an%20individual
It’s not the most recent earning years data, but rather the highest earning years to come up with benefit amounts. Knowing this, some individuals choose to continue working longer during their higher earning years to increase their futures benefit.
Marital Status
Marital status matters when it comes to claiming benefits. Spouses may be eligible for a spousal benefit, which allows them to receive up to 50% of their spouse’s benefit at Full Retirement Age. They may claim their own benefit or the spousal benefit whichever is higher. Benefits will be reduced if claimed before FRA.
Divorced individuals may qualify for spousal benefits if the marriage lasted at least 10 years and the divorce has been finalized for at least 2 years.
https://www.aarp.org/social-security/retirement/spousal-benefits/
Survivor Benefits
Spouses often coordinate their claiming strategies to maximize survivor benefits. If one spouse passes away, the surviving spouse is eligible to receive the higher of the two benefit amounts. They won’t be able to keep both benefits so maximizing the survivor benefit can be vital for planning purposes.
This leads to some couples choosing to delay the higher earners benefit until age 70 to maximize long-term income protection for the surviving spouse.
Survivor benefits are eligible for the current spouse and previous spouses but must meet certain criteria.
Health Status and Disabilities
When looking to claim Social Security, it’s important to factor in overall health status. As we age, we typically don’t get healthier and if someone has a medical condition or disability that caused them to retire earlier, claiming benefits sooner may make more sense. In some cases, individuals may also qualify for Social Security Disability benefits prior to claiming retirement benefits.
Life Expectancy
Life expectancy is another factor to consider when claiming benefits. Claiming benefits early means receiving smaller payments over a longer period of time while delaying benefits results in larger payments over a shorter period of time. If life expectancy looks shorter based on family genetics or other health factors, claiming earlier can make sense.
According to AARP, the “break even” age which means delaying benefits becomes more advantageous typically occurs between ages 78-80 depending on when benefits were claimed. https://www.aarp.org/social-security/faq/break-even-age/
Tax Implications
Social Security benefits are typically going to be taxable but it’s going to depend on total income. Additionally, if benefits are claimed before Full Retirement Age while still earning income above certain thresholds, your benefits may be reduced.
For individuals focused on tax-efficient retirement planning, it may make sense to delay benefits in order to better manage taxable income in early retirement years. This may allow for further tax planning in early retirement.
Other Assets and Income
Social Security benefits generally cannot be passed on as part of a legacy, with the exception of survivor benefits. However, other assets you built up before and during retirement can be passed down to heirs.
Because of this, it’s important to consider how your Social Security strategy aligns with your broader financial goals, including:
- Your retirement income needs
- Your withdrawal strategy
- Your legacy planning goals
Delaying Social Security may increase future income, but it also may mean relying more heavily on your personal savings in the short term.
There is no one-size-fits-all strategy when it comes to claiming Social Security but understanding the different stages and factors to consider when claiming benefits can make a significant difference in maximizing your benefits.
Choosing when to claim Social Security benefits is just one part of a comprehensive retirement income plan. Coordinating your benefits is essential to building a sustainable and flexible Living Financial Plan™.
By: Shannon Stophel, CFP®
Published On: 3/31/2026