The Stakes Are High
The decision of when to claim Social Security can be worth tens of thousands — sometimes hundreds of thousands — of dollars over your lifetime. Yet most people make this decision with little analysis.
Let's change that.
Your Options
You can claim Social Security as early as age 62 or as late as age 70. Your Full Retirement Age (FRA) is somewhere between 66 and 67, depending on your birth year.
- Claim early (before FRA): You get more checks, but each one is smaller — permanently
- Claim at FRA: You receive your full benefit
- Delay (up to 70): Your benefit grows by 8% per year past FRA — a guaranteed, inflation-adjusted return
The Break-Even Analysis
The classic way to think about this is the break-even point — the age at which you come out ahead by delaying.
For most people, the break-even between claiming at 62 vs. 70 is somewhere in the mid-to-late 70s. If you live past that age, delaying pays off. If you don't, claiming early would have been better.
The problem? We don't know how long we'll live.
Factors That Favor Delaying
- Good health and family longevity
- Other income sources that can cover expenses until 70
- Married couple — the higher earner's delayed benefit becomes the survivor benefit
- Concern about running out of money later in life
Factors That Favor Claiming Early
- Health concerns or shorter life expectancy
- Financial need — no other income to bridge the gap
- Single individual with no survivor consideration
- Lower earning spouse whose benefit won't change significantly
The Spouse Consideration
For married couples, this decision gets more complex — and more important. The surviving spouse receives the higher of the two benefits. That means maximizing the higher earner's benefit by delaying can provide significant long-term security for the surviving spouse.
This is often the most powerful reason for higher earners to wait until 70.
What We Recommend
There's no universal right answer. But we believe:
- Run the numbers for your specific situation — break-even analysis, survivor benefit analysis, income gap analysis
- Factor in health honestly — both your own and your family history
- Consider the portfolio impact — drawing down investments to delay Social Security can be worth it
- Work with an advisor — Social Security optimization is one of the highest-value planning decisions we help clients make
If you're approaching this decision, we'd love to help you think through it properly.