By Brent Matthew
It’s one of the most frequently asked questions from Americans mulling over their retirement plans: “What’s the right age to claim Social Security?”
As you might have expected, there’s no single correct answer. Some start benefits as soon as they’re eligible at age 62. Others wait until 70 to maximize their benefit payouts. However, age only plays one part in the final decision.
Whatever you decide, your claiming strategy should be in alignment with your overall retirement plan, your financial needs, and your health and lifestyle. This post looks at the most driving factors to help you determine the right age to claim Social Security.
When You Can Claim Social Security
Begin with the basics: What is the age at which you first become eligible to start taking Social Security benefits? The earliest possible age is 62. However, if you decide to start taking withdrawals before your full retirement age (FRA) (which is 67 for those born in or after 1960), your monthly benefit checks are smaller.
Furthermore, if you start taking benefits before FRA, you’ll only be eligible for a portion of your overall Social Security benefit. For example, if you start taking withdrawals at age 62, you’ll only be eligible for 70% of the overall benefit amount.
The closer you get to FRA, the higher that percentage goes: 75% at 63, 80% at 64, 86.7% at 65, and 93.3% at 66. Waiting until FRA at age 67 is the only way to get 100% of your Social Security benefit.
If you hold off beyond age 67, your overall benefit can actually increase beyond 100% by about 8% each year: 108% at 68, 116% at 69, and 124% at 70. Your benefits stop increasing at age 70, the latest you can start taking distributions.
As an example, let’s assume your full retirement benefit at age 67 is $1,000 per month. If you choose to claim early at age 62, that amount would be reduced to $700 per month. However, if you delay claiming until age 70, your monthly benefit would increase to $1,240. In other words, by waiting, you’d receive a benefit that’s 77% higher—for life. And that’s before factoring in cost-of-living adjustments. Once those are included, your monthly benefit at age 70 could potentially be nearly double what it would be at age 62.
What’s the right age to claim Social Security? Here’s a look at some of the factors that could come into play.
Factors to Determine the Right Age to Claim Social Security
Before you can know the right age for you to claim Social Security, there are a few personal factors that help point you toward the right decision.
- Health and Longevity: Physical health might be the most important overall factor in deciding when to take Social Security. If you remain in good health or have a longer life expectancy, holding off on benefits may be worth it.
- Income: If you earn income from other sources in retirement (e.g., investments, annuities, a part-time job), depending on your cash flow needs, you might think about waiting to take withdrawals.
- Spousal Strategy: Married couples can improve their long-term results by coordinating when they claim Social Security. In most cases, the higher-earning spouse should delay benefits until age 70. Why? Because that benefit lasts for both lives. If the higher earner passes away, the surviving spouse receives the larger benefit as a survivor benefit, making delayed claiming a smart strategy for long-term financial security.
- Taxes: Social Security income is generally taxable unless your overall annual income in retirement falls below a certain threshold. This could suggest a good time to start.
We Can Help You Claim Social Security at the Right Age
As with other financial decisions, the right time to take Social Security depends on several interlocking issues and considerations. In fact, for married couples alone, there are over 500 different claiming strategies to evaluate, making it one of the more complex decisions in retirement planning. The best way to start is by understanding your financial situation and clarifying your goals for retirement.
If you’re nearing a decision on taking Social Security, Scottsdale Wealth Advisory can help. We’ll review your financial plan and help you develop a strategy for retirement income and withdrawals.
To schedule your complimentary financial coaching session, call (480) 247-9090, email info@SWAFirm.com, or book directly at calendly.com/BrentMatthew.
About Brent
Brent Matthew is the founder, CEO, and portfolio manager at Scottsdale Wealth Advisory, a full-service fiduciary retirement planning firm serving pre-retirees and retirees across Arizona and multiple states. With a strong commitment to always putting clients first, Brent leads the firm in developing comprehensive, tax-efficient financial plans tailored to each family’s unique goals. As portfolio manager, he is responsible for researching investment, annuity, and life insurance strategies and building smart asset allocations that reflect both long-term growth and risk management.
Brent is driven by a core belief: “The success of this firm will be measured by the success of the families it represents.” That client-first approach has guided his work since the beginning. He is currently enrolled at the College for Financial Planning and is on track to earn his CERTIFIED FINANCIAL PLANNER® designation. He also holds his Series 65 license and Arizona Life and Health Insurance Producers License.Outside the office, Brent embraces the Arizona outdoors with “lil B” and their two pomskies, Heimo and Kota. Whether he’s hiking, fishing, dirt biking, skiing, golfing, kayaking, or skeet shooting, Brent finds balance and joy in staying active. He’s also a fan of CrossFit, brunching, and cruising the Phoenix canal system on his beach cruiser—usually with classic tunes from the Marshall Tucker Band, Gordon Lightfoot, or Crosby, Stills & Nash playing in the background. To learn more about Brent, connect with him on LinkedIn.
