Getting Social Security right

When to claim Social Security is one of the biggest retirement decisions you’ll make—and one of the most misunderstood. Many people default to a simple rule of thumb: take it early if you need it, wait if you don’t. There’s some truth to that, but the real answer usually involves a little more thinking.

I like to frame the decision a different way: What job do you need Social Security to do for you? Do you need income now? Are you trying to protect yourself from outliving your money? Or are you trying to protect a spouse if you die first? Once you can answer that question, the decision often gets a bit easier to make.

Let’s start with the basics. You can claim Social Security as early as age 62 or as late as age 70. Your Full Retirement Age (FRA) is the age at which you qualify for the full benefit you’ve earned. For many retirees today, FRA is 67. If you claim before FRA, your benefit will be permanently reduced. If you delay beyond FRA, your benefit increases each year you wait, up to age 70. That increase can be substantial—and because Social Security is one of the few inflation-adjusted, government-backed income sources available, the timing decision carries real long-term consequences.

When we sit down with clients, I usually walk through five practical questions:

1) Are you still working?

If you claim before FRA and continue earning above Social Security’s annual limit, some of your benefit will likely be withheld. You’ll eventually get that money back, but the process can be confusing and frustrating. If you’re still working and haven’t reached FRA, think carefully before filing early.

2) Do you need the income—or just want it?

If you need Social Security income to cover essential expenses, that’s a strong case for claiming earlier. But if you can live off savings and investments for a few years, delaying is worth serious consideration. Every month you wait up until age 70 increases that lifetime income stream.

3) What does your health and family longevity look like?

This isn’t a pleasant topic, but it matters. If you’re healthy and longevity runs in your family, delaying often makes sense. But if you have serious health concerns or a shorter life expectancy, claiming earlier may be the better fit. The point is to make the decision intentionally—not by habit or hearsay.

4) Are you married—and whose benefit is larger?

For married couples, this can be a big one. If one spouse has a much larger benefit, delaying that higher benefit can also increase the survivor benefit for the spouse who outlives them. In many cases, that makes delaying Social Security one of the most cost-effective forms of “widow insurance” available.

5) What do your taxes look like between retirement and age 73?

This is a planning opportunity many retirees overlook. In our practice, we often talk about the “golden window”—the years between retirement and when required minimum distributions (RMDs) begin. Claiming Social Security too early in that window can raise taxable income and reduce flexibility for strategies like Roth conversions and tax-bracket management. Sometimes delaying Social Security isn’t just about a larger benefit later—it’s about better tax control now.

There’s no one-size-fits-all answer to all this, but there are some common paths. Some people claim at 62 because they truly need the income. Others wait until FRA and take a middle-of-the-road approach. And some delay to 70 because they’re healthy, can afford to wait, and want the highest possible inflation-adjusted benefit—especially if they’re the higher-earning spouse. All three approaches can be valid, depending on the circumstances.

The biggest mistakes we see: 1) focusing too much on “breakeven age”; 2) claiming early out of fear that Social Security is going away; and 3) making the decision in isolation without considering taxes, spouse benefits, Medicare, and portfolio withdrawals. Social Security isn’t just a filing decision. It has to be part of your overall retirement income plan.

That’s why I encourage retirees to stop asking only, “When should I claim?” and start asking, “How should Social Security fit into my retirement plan?” That question usually leads to a much better answer.