Why You May Want to Pause Before Taking Social Security at 67

Social Security benefits can be claimed starting at age 62, but in many cases, waiting longer can improve your long-term financial picture.

Full retirement age is 67 for people born in 1960 or later, and claiming then lets you receive your full benefit. Still, the right age to file depends on your own finances and, if you're married, your spouse's claiming strategy. These three questions can help guide the decision.

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1. Do I need the money now, or can I afford to wait?

Reaching full retirement age does not mean you have to start benefits right away. In fact, delaying until age 70 can increase your monthly Social Security payment to the maximum level. Claiming at 67 gives you income sooner, but waiting three more years can mean a larger check each month.

If you do not urgently need the income, delaying may be the better move. Some people cover the gap with portfolio withdrawals, part-time work, or tighter spending. But if you need the money to cover basic expenses, starting at full retirement age may be the more practical choice.

2. How long do I realistically expect to rely on this benefit?

Social Security is meant to support retirees after they stop working. For some people, it provides income for about a decade; for others, it becomes a source of support for many decades.

Those with a family pattern of shorter lifespans or serious health issues may prefer to claim sooner. People in good health with a history of longevity in the family may benefit from waiting, since the larger monthly payments can matter more later in retirement.

3. How will my decision affect my spouse, taxes and work plans?

Married couples should also think about when each spouse plans to claim. If one spouse dies first, the survivor generally receives either their own benefit or the deceased spouse’s benefit, whichever is higher. That is one reason the higher earner may want to delay claiming as long as possible.

Claiming benefits can also affect your taxes if you or your spouse is still earning income. The impact can be even greater if you are taking withdrawals from a traditional retirement account at the same time.

In some households, it makes sense for the higher-earning spouse to delay while the lower-earning spouse files earlier. If your situation is more complicated, a financial planner or tax professional may be able to help you weigh the tradeoffs.