Claiming Social Security

Derrick Alexander |
Categories
Retirement

When Should You Claim Social Security? Let’s Break It Down.

Claiming Social Security is one of the most important decisions you’ll make when planning for retirement. Why? Because for most retirees, Social Security is the only source of guaranteed income that includes a cost-of-living adjustment (COLA)—meaning your income grows over time to keep up with inflation.

Here are the three primary claiming timelines to consider:

Claim Early – Age 62

Many people choose this option because they like the idea of receiving their benefit as soon as possible. A common thought is: “I don’t know what the future holds, so I might as well get my money now.”
While that’s understandable, keep in mind:
 - Claiming at 62 comes with a 30% reduction in your monthly benefit.
-   If you’re married, it could also reduce the survivor benefit your spouse would receive.
This option offers immediate cash flow—but comes at a long-term cost.

Claim at Full Retirement Age (FRA) – 66 or 67

This is the age where you can receive your full benefit without reduction. For many, this strikes a good balance between starting benefits and maximizing value. If you're still working or want to coordinate with a spouse’s benefit, this may be the most strategic time to file.

Delay Until Age 70

Delaying your benefit past full retirement age results in an 8% increase per year up to age 70. If Social Security will make up a significant portion of your retirement income, this strategy can be a powerful way to lock in a larger, inflation-adjusted income for life.

Why It Matters:

Think of Social Security as one of the most valuable income-generating assets in retirement. Choosing when to claim it can affect your monthly income, spousal benefits, and long-term financial stability.

Coming Soon:
Over the next few weeks, I’ll dive deeper into strategies for optimizing Social Security at Full Retirement Age and at Age 70.

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