Many people think they should wait as long as possible to claim Social Security. Financial advisers often recommend delaying benefits until at least full retirement age — or even age 70 — to get the biggest monthly check. But sometimes it makes sense to take benefits earlier than that.
Social Security benefits can start at age 62, but your monthly amount will be permanently reduced. Full retirement age is 67 for people born after 1960. Waiting until 70 can give you 132% of your full benefit, according to the Social Security Administration (SSA).
However, only about 4% of people actually wait until 70. Let’s look at three situations where it might make sense to start your benefits early.
1. You Can’t Work and Need the Money
If you’re unable to work and you need money to cover your expenses, it might be a good idea to claim Social Security benefits early. The average monthly benefit in late 2024 was about $1,925.
According to financial experts, some people may have high withdrawal rates from their savings, which can quickly drain their retirement money.
Kyle Kraus, a senior wealth planner, explains that between ages 62 and 67, withdrawal rates of 6-8% are considered risky. In these cases, claiming Social Security early could help you cover basic expenses like housing, food, and healthcare.
2. You’re in Poor Health or Have a Shorter Life Expectancy
If you’re not in good health or have a family history of a shorter life expectancy, claiming Social Security early might make sense. According to the SSA, the average life expectancy for a 65-year-old today is around 84 years for men and 87 years for women.
Eric Steffy, a benefits expert, says that people should consider their own health and family history when deciding when to claim. “It’s a very personal decision,” Steffy says. Sometimes people need to claim early to help with medical bills or because they can’t keep working.
3. You’re the Lower-Earning Spouse
In some cases, if you’re married, the lower-earning spouse might want to claim their benefit early. This way, the higher-earning spouse can wait to claim a higher monthly benefit later on.
Rob Williams from the Schwab Center for Financial Research explains that this strategy allows the lower-earning spouse to get payments early, and then later switch to a spousal benefit when the higher-earning spouse starts collecting.
Not an Exact Science
Choosing when to claim Social Security isn’t a simple decision. Taking benefits early means smaller payments for a longer time. Waiting means larger payments, but over fewer years. There’s often a “break-even” point in your early 80s where the total amount you’d receive is about the same.
Eric Steffy advises people to consider how they want to live in retirement. “Do you need it to pay bills? Do you want to travel or enjoy hobbies?” he asks. It’s important to plan carefully so you can have the lifestyle you want.
Tools to Help You Decide
The SSA website (SSA.gov) has helpful calculators to estimate your benefits at different ages. Benefits are based on your top 35 earning years. Use these calculators to see how waiting can boost your monthly payment.
A Word of Caution
Many people are worried about the future of Social Security because the trust fund could run out of money by 2035. If Congress doesn’t act, benefits might be cut by 17%. Rob Williams says that while it’s normal to worry, it’s important to make decisions based on a solid plan — not fear.
Kyle Kraus also notes that people get emotional about Social Security. “It’s on everyone’s mind as they approach retirement,” he says.
Conclusion
Deciding when to claim Social Security is a personal choice. If you can wait until full retirement age or even 70, you’ll get a bigger check. But if you can’t work, have health concerns, or are the lower-earning spouse, claiming early might be the best move for you.
Make sure to check your benefits on SSA.gov and talk to a financial adviser if you’re unsure. Plan carefully so you can enjoy your retirement.
FAQ’s
Q1: What is the earliest age I can claim Social Security benefits?
A1: You can start claiming Social Security benefits at age 62, but your monthly payment will be permanently reduced compared to waiting until full retirement age.
Q2: Will my benefits increase if I wait to claim?
A2: Yes, if you delay benefits until age 70, you could receive 132% of your full benefit, according to the Social Security Administration.
Q3: Is it a good idea to claim Social Security early?
A3: It depends on your situation—like if you need the money, have health issues, or are the lower-earning spouse in a marriage. It’s a personal choice.
