Unsure When to Start Social Security? Ask These 3 Questions First

Key Points

• The age you choose to file for Social Security affects the size of your monthly benefit.

• Your savings, health, and your spouse’s financial needs should all play a role in the decision.

Deciding when to claim Social Security is one of the most difficult parts of retirement planning. Your benefit amount is based on your earnings record, but the age you file determines whether that payment is reduced, paid at full value, or increased.

You may begin collecting Social Security at 62. To receive your benefit in full, you need to wait until full retirement age, which is 67 for people born in 1960 or later. Delaying beyond that point can raise your monthly check by 8% each year until age 70.

If those choices feel overwhelming, you are not alone. These three questions can help narrow the decision.

1. How much will my savings cover compared with my spending?

Start by estimating how much income you need from Social Security. Build a retirement budget that includes both necessary expenses and the activities you want to enjoy, then compare that with the income your savings can safely produce.

For example, if you need $5,000 a month and can withdraw $3,000 from savings without taking on too much risk of running out, Social Security would need to provide the remaining $2,000. If your full retirement age benefit is already $2,000, claiming early may not be the best move. If you want more cushion, waiting a year beyond full retirement age could increase your benefit.

2. How good is my health?

The longer you live, the more valuable a delayed claim can become. On the other hand, if your life expectancy is shorter, starting benefits earlier can lead to a larger total payout over your lifetime.

Consider your overall health and family history. While no one can know exactly how long they will live, someone facing several medical problems in their early 60s and with parents who died relatively young may want to file sooner. Even with smaller monthly checks, the lifetime total could end up higher if that person passes away in the early or mid-70s.

3. How much will my spouse depend on survivor benefits?

If you are married and your earnings were higher than your spouse’s, your Social Security benefit may be larger. In that case, if you die first, your spouse will usually be eligible for a survivor benefit equal to 100% of your monthly payment. A bigger benefit for you can therefore mean more financial support for your spouse later on.

If you have substantial savings or a strong life insurance policy, your spouse may not rely as heavily on Social Security survivor benefits. Think about how they would handle finances if you were gone first, and use that to guide your choice.

Claiming Social Security at the right time matters. Working through these three questions can help you choose an age that fits your situation.