When Should You Start Taking Social Security? The Answer May Surprise You

One of the most important financial decisions you will make during your retirement planning process is deciding when to start collecting Social Security benefits. Many people assume that taking benefits as early as possible is always the best move. Others believe waiting until age 70 is the smartest strategy. The truth is, the right answer depends on your unique situation. And it might surprise you!

The Basics of Timing

You can start collecting Social Security benefits as early as age 62, but your monthly payments will be permanently reduced if you claim before your full retirement age. Full retirement age is typically between 66 and 67, depending on your birth year. If you wait until age 70, your benefits increase thanks to delayed retirement credits.

Why Taking Benefits Early May Be Right for You

Many people choose to begin collecting at age 62 because they need the income or want to enjoy retirement while they are still in good health. If you have a shorter life expectancy due to health concerns or family history, claiming earlier might allow you to get the most value from the system. Others may want to use their benefits to reduce how much they draw from retirement savings in the early years of retirement.

Why Waiting Can Pay Off

If you’re in good health and expect to live a long life, delaying benefits can significantly increase your monthly income. For every year you wait past full retirement age, your benefit increases by about eight percent. Over time, that can make a big difference, especially if you live into your 80s or 90s. Waiting to claim your benefits can also provide greater financial protection for a surviving spouse.

The Key: Personalization

There is no one-size-fits-all answer. The right time to start collecting Social Security depends on your health, income needs, savings, life expectancy, marital status, and retirement goals. That’s why working with a financial planner can be so valuable.

Don’t leave this important decision to chance. Consult with us frequently throughout your retirement planning process so that we can help you understand your options and create a plan that supports your long-term financial well-being. The right timing for your Social Security benefits may not be what you expect, but with the right guidance, it can support a more secure retirement.

About the Author: Mark Roberts

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

When Should You Start Taking Social Security? The Answer May Surprise You