One of the most common questions I hear is, “When should I take Social Security?” It is one of the few retirement decisions you usually cannot undo, so it deserves a real plan — not a guess.

The rules in one minute

  • You can claim as early as 62 or as late as 70.
  • Your full retirement age is 67 if you were born in 1960 or later.
  • Claim at 62 and your monthly benefit is permanently reduced — by about 30% if your full retirement age is 67.
  • For each year you wait past full retirement age, up to age 70, your benefit grows by 8%.

That means the difference between claiming at 62 and claiming at 70 can be more than 75% in monthly income — and every dollar of it is adjusted for inflation and paid for the rest of your life.

Why waiting is often worth it

Longevity. People are living into their 90s and beyond. A larger, inflation-adjusted check that lasts as long as you do is one of the strongest protections against running out of money before you run out of time.

Your spouse. When one spouse passes away, the surviving spouse generally keeps the larger of the two benefits. Delaying the higher earner’s benefit can protect the person you love most for decades.

Taxes. Coordinating when you claim with when you draw from your 401(k), 403(b), 457 or IRA can help manage how much of your benefit is taxed.

When claiming earlier can make sense

Waiting is not right for everyone. Health, family history, your other income and whether you are still working all matter. The point is to make the decision on purpose, as part of a comprehensive plan.

In our planning, Social Security timing is coordinated with your withdrawals, your taxes and your healthcare costs — so each piece supports the others.

Want to see how this applies to you? Book a 20-minute Clarity Call with Nancy or call the office at 561-997-8800 or Nancy’s cell at 561-690-6002.

This article is for general educational purposes only and is not individualized investment, tax or legal advice. Neither Osaic Wealth nor its representatives offer tax or legal advice; please consult your CPA or attorney about your situation.