Deciding when to start your Social Security benefits is a big financial decision, and there’s no one-size-fits-all answer. While benefits are available as early as age 62, waiting can mean bigger monthly payments. But is it the right move for you? Let’s break it down.
What Is Your Full Retirement Age and Why Does It Matter?
Your full retirement age (FRA) is the age when you’re entitled to your full Social Security benefit. If you were born between 1943 and 1954, your FRA is 66. For those born later, it gradually increases to 67. Claiming before FRA means a reduced monthly benefit—potentially by as much as 30%. On the flip side, waiting beyond FRA (up to age 70) boosts your benefit by about 8% per year.
How to Decide When to Take Social Security
Rather than relying on a general rule, consider these factors when making your decision:
Do you need the cash now?
If you need Social Security to cover essential expenses, taking it early might be the best option. However, delaying could be more beneficial if you have other income sources.
How’s your health?
If you expect to live a long life, waiting can maximize your lifetime benefit. On the other hand, taking benefits earlier may make sense if you have health concerns or a family history of shorter life expectancy.
Are you still working?
Earning wages before reaching FRA can reduce your Social Security benefits. In 2025, for example, if you earn more than $23,400 and claim benefits early, $1 is deducted for every $2 earned above that limit. However, once you hit FRA, this reduction disappears.
What about taxes?
Depending on your total income, Social Security benefits may be taxable. Higher earners may benefit from delaying benefits to manage their tax burden.
Are you married?
For couples, strategizing can make a big difference. If you’re the higher earner, delaying benefits could provide a higher survivor benefit for your spouse.
Is It Better to Take Social Security Early or Wait?
Some people benefit from taking Social Security early, while others maximize their long-term income by waiting. If you’re unsure what’s best for your situation, working with a financial planner can help. At Capital Wealth Management, we help clients evaluate Social Security timing in the context of their broader retirement plan.
Need Help Deciding? Talk to a Financial Advisor
Deciding when to start Social Security is just one piece of the puzzle. We can help you create a personalized retirement income strategy that balances Social Security, investments, and other income sources. Schedule an introductory meeting to start planning today.
Jordan Hickey is a CERTIFIED FINANCIAL PLANNER® professional who helps clients create personalized financial plans. Based in Glastonbury and Wilton, CT, Jordan offers guidance on retirement, insurance, investments, and overall wealth management. Schedule a complimentary introductory meeting with Jordan.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation.
Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.