When Should You Take Social Security?
Social Security gets talked about a lot these days, especially regarding its long-term viability. My view is that anyone currently in their 50s or 60s is probably very safe from substantial benefit changes. Younger workers may need to take more of a wait-and-see approach.
There is no “one size fits all” answer as to when you should take Social Security. Assuming you have enough work credits, you become eligible for benefits at age 62. However, each person is assigned a “full retirement age” (FRA) by Social Security. For people born in 1960 or later, FRA is age 67. For those born before 1960, it is based on a sliding scale. Those born in 1958 reach FRA at 66 years and 8 months, while those born in 1959 reach FRA at 66 years and 10 months.
There are two main consequences of taking benefits before your FRA: permanently lower benefit levels and potential earnings penalties. The main benefit of delaying Social Security past your FRA is a permanently higher monthly benefit.
As you can see, there are several important moving parts in this decision. The best we can do is make educated guesses about when it makes sense to start taking benefits. Factors such as lifespan and future investment returns can influence the outcome, and both of those are obviously unknown.
Here are some important things to consider:
- Health and longevity matter. People with shorter life expectancies may benefit from taking Social Security earlier in order to maximize lifetime benefits.
- The longer you wait, the higher your benefit. Your monthly benefit increases by roughly 8% per year for every year you delay taking Social Security, up until age 70. For example, someone entitled to $3,000 per month at age 67 would receive approximately $3,720 per month by waiting until age 70. Of course, those who wait until age 70 will only benefit if they live long enough to make up for the delayed payments. For those deciding between taking at age 62 versus waiting until age 70, it’s somewhere around age 80-83 that the decision to delay amounts to a greater total benefit.
- Marital status is important. Couples need to plan together. When the first spouse dies, the surviving spouse generally receives the higher of the two Social Security benefits. Delaying benefits can significantly increase the surviving spouse’s lifetime income.
- Employment matters too. Before full retirement age, benefits are temporarily reduced by one dollar for every two dollars earned above the income limit ($24,480 in 2026). Once you reach full retirement age, work income has no effect, and any prior reductions are gradually repaid through a slightly higher benefit.
The Social Security decision is rarely simple, particularly for married couples. Do your homework, read as much as possible, and make the most informed decision you can about what is truly a remarkable benefit.
Fun Fact: Your Social Security benefit is a major asset in retirement planning. A 67-year-old receiving $2,750 per month in Social Security who lives to age 87 will collect roughly $660,000 in lifetime benefits.
