Presented by Axial Financial Group.
One of the most common questions people ask as they approach retirement is:
“When should I start collecting Social Security?”
Unfortunately, there isn’t a one-size-fits-all answer.
The decision of when to begin collecting Social Security benefits can have a significant impact on your retirement income, and the best strategy often depends on your overall financial situation, health, retirement goals, and income needs.
While some individuals begin collecting benefits as early as age 62, others choose to wait until their full retirement age—or even age 70—to maximize their monthly benefit amount.
Let’s explore some of the potential advantages and considerations of each approach.
Claiming Social Security Early
You may begin collecting Social Security benefits as early as age 62. For many retirees, accessing benefits sooner provides flexibility and additional income during the early years of retirement.
Potential Advantages
- Receive income sooner
- May help cover living expenses during retirement
- Potentially receive benefits over a longer period of time
- Can provide flexibility if retiring before full retirement age
Important Considerations
- Monthly benefit amounts are permanently reduced
- Lower benefits may impact long-term retirement income
- Less protection against inflation over time
- Surviving spouses may receive lower benefits in certain situations
For individuals who need income immediately or have health concerns that may affect life expectancy, claiming early may make sense. However, it’s important to understand the long-term tradeoffs before making a decision.
Waiting Until Full Retirement Age or Beyond
Full Retirement Age (FRA) varies depending on your birth year, but for many retirees it falls between ages 66 and 67. Delaying benefits beyond FRA can increase your monthly benefit amount, with additional delayed retirement credits available until age 70.
Potential Advantages
- Higher monthly benefit payments
- Greater lifetime income potential
- Increased protection against inflation
- Larger survivor benefits for a spouse
Important Considerations
- Benefits are delayed while waiting
- Other income sources may be needed during the gap years
- Delaying may not be ideal for everyone depending on health or financial circumstances
For retirees who can afford to wait and expect a longer retirement horizon, delaying benefits may provide greater long-term financial security.
Factors to Consider Before Making a Decision
While the age you claim benefits matters, it shouldn’t be viewed in isolation.
A comprehensive Social Security strategy should consider:
- Your retirement income needs
- Other retirement assets and investments
- Health and life expectancy
- Marital status
- Survivor benefit considerations
- Tax implications
- Overall retirement goals
The right claiming strategy is often closely connected to the rest of your financial plan.
The Bottom Line
Social Security is an important piece of the retirement puzzle, but the decision of when to begin collecting benefits should be based on your unique circumstances—not simply what worked for a friend, neighbor, or family member.
For some individuals, claiming benefits early may provide the income and flexibility they need. For others, waiting may help maximize retirement income and provide greater long-term financial confidence.
Understanding the tradeoffs can help you make a more informed decision and ensure your Social Security strategy supports your broader retirement goals.
If you’re approaching retirement and wondering how Social Security fits into your overall financial plan, working with a financial advisor can help you evaluate your options and determine a strategy that’s aligned with your needs and objectives.
This content was created using generative artificial intelligence. Output used in this material has been verified by the author/advisor.
Axial Financial Group. All Rights reserved. 1 Van de Graaff Drive, Suite 500Burlington, Massachusetts. 781.273.1400
