The Short Answer

When it comes to claiming Social Security, you can begin retirement benefits as early as age 62, but claiming before your full retirement age permanently reduces your monthly benefit. Waiting beyond full retirement age increases it until age 70. There is no universally correct age. The decision depends on your health and life expectancy, other income sources, whether you are still working, your marital status, and how the choice fits within your broader retirement income plan.

For married couples, the claiming decision is particularly important because it can affect the survivor benefit the surviving spouse receives for the rest of their life.

How Does Claiming Age Affect Your Benefit?

Your benefit is based on your earnings history and calculated as your primary insurance amount, the monthly amount you would receive at full retirement age. For anyone born in 1960 or later, full retirement age is 67.

  • Claiming early: Benefits can begin at 62, but the monthly amount is reduced. For someone with a full retirement age of 67, claiming at 62 results in roughly a 30% reduction.
  • Claiming at full retirement age: You receive your full primary insurance amount.
  • Delaying: For each year you wait past full retirement age, up to age 70, your benefit grows through delayed retirement credits of 8% per year.

These adjustments are permanent, and benefits are also adjusted annually for inflation through cost-of-living adjustments. The Social Security Administration’s retirement benefits planner provides official details.

What Factors Should Shape the Decision?

Health and Longevity

Delaying generally provides more lifetime income for people who live into their late 80s or beyond. Those with serious health concerns or a shorter life expectancy may reasonably favor claiming earlier.

Other Income and Assets

If you have sufficient savings to cover expenses while you wait, delaying can increase a lifelong, inflation-adjusted income source. Some retirees intentionally draw more from their portfolio in their 60s to delay Social Security, effectively using savings to secure a larger future benefit.

Continued Employment

If you claim before full retirement age and continue to work, the Social Security earnings test may temporarily withhold part of your benefit if your earnings exceed an annual limit. Withheld amounts are not lost permanently; your benefit is recalculated at full retirement age.

Taxes

Depending on your total income, up to 85% of Social Security benefits may be subject to federal income tax. The timing of benefits relative to IRA withdrawals and Roth conversions can affect your overall tax picture.

How Should Married Couples Coordinate?

Spouses have additional options. A spousal benefit can be worth up to 50% of the higher earner’s primary insurance amount if claimed at full retirement age. When one spouse dies, the survivor can generally receive the larger of the two benefits.

Because of this, many couples consider having the higher earner delay claiming, which increases both their own benefit and the potential survivor benefit. The lower earner may claim earlier to provide income in the meantime. Newport’s article on losing a spouse discusses some of the financial decisions survivors face.

Divorced individuals may also be eligible for benefits based on a former spouse’s record if the marriage lasted at least ten years and other conditions are met.

How Does Social Security Fit Into the Larger Plan?

Social Security is one of the few sources of inflation-adjusted lifetime income available to most retirees, which makes it valuable protection against longevity and inflation risk. The claiming decision is best made alongside your withdrawal strategy, tax planning, and healthcare planning, including Medicare enrollment at 65, rather than in isolation.

The Takeaway

Claiming Social Security is a significant and largely irreversible decision. Comparing scenarios based on your health, savings, tax situation, and marital status can help you choose a strategy aligned with your long-term goals. If you would like to model your options as part of a broader retirement plan, Newport’s private wealth team can help.

This article is provided for educational purposes only and is not individualized investment, tax, or legal advice. Please consult qualified professionals about your specific circumstances and review our disclosures.