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Timing is everything: What retirees should consider before claiming Social Security

There are pros and cons no matter when you start receiving benefits

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Photo by Alia Vela on Unsplash

Key Insights

  • Retirees can claim Social Security as early as 62, but waiting can significantly increase monthly benefits.
  • Health, longevity, marital status, and work plans are key factors in determining the best time to claim.
  • Delaying benefits past full retirement age boosts monthly income by up to 8% annually until age 70.

For millions of Americans, Social Security retirement benefits are a cornerstone of their financial future. But deciding when to start collecting those benefits isn’t always straightforward. 

The age at which retirees choose to file for Social Security can have a lasting impact on their monthly income, lifetime benefits, and financial flexibility in later years.

Retirees can begin claiming Social Security as early as age 62, but doing so comes at a cost. Claiming early results in a permanent reduction in monthly benefits—up to 30% less than if one waits until full retirement age (FRA), which recently rose to 67, depending on birth year. Conversely, delaying benefits beyond FRA increases payments by about 8% for each year of delay, up to age 70.

Health and longevity expectations

Life expectancy plays a crucial role in this decision. If retirees anticipate a longer lifespan – perhaps due to family history or personal health – it often makes sense to delay benefits to maximize the total payout. Those with shorter life expectancies may benefit from claiming earlier to receive benefits sooner, even if monthly checks are smaller.

Married couples face a more complex decision. A lower-earning spouse may want to file earlier while the higher-earning spouse delays benefits to maximize potential survivor benefits. Widows and widowers, as well as divorcees who were married for at least 10 years, may also qualify for spousal or survivor benefits, which should be factored into the timing strategy.

Additionally, retirees with dependent children under 18 may qualify for family benefits, making an earlier claim more attractive.

Working in retirement

Those planning to work past age 62 need to be cautious. Claiming Social Security before FRA while still earning income could lead to temporary benefit reductions. In 2025, retirees under FRA can earn up to $22,320 before benefits are reduced by $1 for every $2 earned over the limit. Once full retirement age is reached, the earnings limit no longer applies.

Social Security benefits are adjusted annually for inflation through cost-of-living adjustments (COLAs). By delaying a claim, retirees not only increase their base benefit but also the value of future COLAs, leading to larger compounded payments over time.

Deciding when to claim Social Security is a deeply personal decision that depends on a retiree’s health, lifestyle, family situation, and financial goals. Consulting a financial advisor and using Social Security calculators can help retirees assess different scenarios and determine the most strategic path forward.