Deciding when to start collecting Social Security can significantly affect lifetime income, making it essential for near-retirees to compare their options carefully. Benefits can be claimed as early as age 62, but doing so before full retirement age — 67 for most current workers — permanently reduces the monthly payment by about 30 percent. Conversely, delaying benefits past full retirement age increases the monthly amount by 8 percent per year until age 70.
The decision involves more than just age. Health, family longevity, plans to continue working, tax implications, and spousal or survivor benefits all play a role. For married couples, delaying the higher earner's benefits can boost the survivor benefit for the remaining spouse, a key consideration for long-term planning.
Social Security Administration representatives can explain benefit calculations but generally do not advise on when to file. A recommended first step is creating an account at ssa.gov/myaccount to view personalized benefit estimates based on actual earnings history. The SSA also offers a life expectancy calculator at ssa.gov/oact/population/longevity.html to help gauge how long benefits might be needed.
Free online tools like Open Social Security (opensocialsecurity.com) allow users to compare claiming strategies and estimate which approach yields the most spendable income over time. For personalized guidance, fee-only certified financial planners with Social Security expertise can help coordinate claiming decisions with other retirement income sources such as pensions and savings.
Experts also remind those who delay Social Security that Medicare enrollment typically begins at age 65 and should be addressed separately to avoid penalties or coverage gaps.
Sources: Las Vegas Review-Journal
Original reporting: Las Vegas Review-Journal →
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