Are You Wondering When to Take Social Security? Here’s what to consider when making your decision.

Deciding when to start taking Social Security is a big step—and one that can affect your income for the rest of your life. The right time to begin collecting benefits is different for everyone, and it depends on several personal factors.

Timing Matters

You can begin receiving Social Security retirement benefits as early as age 62, but doing so will reduce your monthly payments. If you wait until your full retirement age—which is 67 for anyone born in 1960 or later—you’ll receive your full, unreduced benefit.

If you’re able to delay even longer, up to age 70, your monthly benefit will continue to grow. For many people, waiting can mean significantly higher income in the long run. But that doesn’t mean it’s the right choice for everyone.

Important Questions to Ask Yourself

Will you keep working?
If you plan to work while collecting Social Security, be aware that your benefits could be reduced based on your income, especially if you claim before reaching full retirement age. Also, a portion of your Social Security benefits may be taxable depending on how much income you earn from other sources.

How will Social Security fit into your overall retirement income?
Do you have a plan for how you’ll pay for expenses in retirement? If Social Security will be one of your main sources of income, it might make sense to claim earlier. But if you’ve built up savings or have other income streams, delaying could increase your financial security over time.

What’s your health and life expectancy?
If you have health issues or a shorter life expectancy, taking benefits earlier could make sense. On the other hand, if you’re healthy and expect to live into your 80s or 90s, waiting may result in more money over your lifetime.

One useful concept is the break-even point. This is the age when the total benefits you receive from claiming early match the amount you’d receive by delaying. This point typically falls 10 to 12 years after you start collecting. For example, if you live well into your 80s, you may end up with more total income by waiting.

Get Guidance from a Professional

Planning for retirement is complex—and Social Security is just one piece of the puzzle. A knowledgeable financial advisor can help you run different scenarios to see how your choices will impact your long-term financial wellbeing.

Recently, Solo Agers Connect partnered with our service provider Beth Duffy of Edward Jones to share a helpful webinar about Social Security. Beth’s webinar covered key points for individuals, couples, widows, and divorced individuals. Many people don’t realize how many rules and options are involved when it comes to Social Security—and working with an experienced advisor can help you avoid costly mistakes.

If you’re unsure when to take Social Security and want personal guidance, reach out to Beth Duffy for advice that you can trust.

Helpful Resource:
Want to learn more? Click here to read A Key to Your Retirement: When to Unlock Social Security