I’m overwhelmed by conflicting advice on when to claim Social Security. Should I take it early at 62, wait for full retirement age, or delay until 70?
Answered by 14 licensed agents
In addition, if you meet the income guidelines above, you may not have employment provided health insurance and be dependent on coverage through the health insurance marketplace, which is based on your income. When you take social security, that is more income you will have to report on your application, making your monthly premium even higher. This is because social security benefits, both taxable and non-taxable, are considered income when determining eligibility for subsidies and premium tax credits through the Health Insurance Marketplace. This includes social security retirement, disability (SSDI), and survivor benefits. When calculating your Modified Adjusted Gross Income (MAGI)
Answered by Melanie McCloud on May 10, 2025
Broker Licensed in FL & GA
Answered by Lt Col Tim Brown on May 12, 2025
Broker Licensed in TN, AL, CO & 10 other states
Here's a breakdown to help you decide:
1. Full Retirement Age (67):
Benefit:
This is your "baseline" benefit, the full amount you're entitled to based on your work history.
Recommendation:
This is a good starting point to consider, as it balances potential lifetime income with a reasonable level of monthly payments.
2. Delaying to 70:
Benefit:
You'll receive "delayed retirement credits," increasing your monthly benefit by about 8% per year, for each year you wait beyond your full retirement age.
Recommendation:
This option is best for those who believe they will live a long time and want the highest possible monthly benefit in the long run.
3. Claiming Early at 62:
Benefit:
You'll receive a reduced monthly benefit, but you'll start receiving payments sooner.
Recommendation:
This might be a good option if you need the money sooner for immediate financial needs, if your health is a concern, or if you think you'll have a shorter life expectancy.
Factors to consider:
Your life expectancy: If you anticipate a longer life, delaying can be advantageous.
Your current financial situation: Do you need the money now or are you comfortable waiting?
Your health: If you have health concerns, claiming early might make sense.
Other retirement assets: If you have other retirement savings, you may be able to delay Social Security for a larger monthly benefit.
Your work history: The amount of your Social Security benefit is based on your earnings history.
In short:
Delaying to 70: The highest potential monthly benefit, but you'll receive it for fewer years.
Full Retirement Age (67): A good balance between a reasonable monthly benefit and lifetime income.
Claiming at 62: A smaller m
Answered by Misty Bolt on May 10, 2025
Agent Licensed in TN, AL, AR & 45 other states
Answered by Anthony Castelluccio on May 10, 2025
Agent Licensed in PA, DE, MD, NJ & VA
Drawing early at 62 may allow you to draw your benefit longer than if you waited until 70 to start drawing it, but the amount would be lower. If you delay drawing until age 70, your monthly benefit payment will be higher.
Answered by Diana Garner on May 27, 2025
Broker Licensed in KY, FL, IN, OH & TN
Answered by Steven Lovell on May 10, 2025
Broker Licensed in GA, CA, FL & 7 other states
Answered by Bill Wheeler on May 10, 2025
Broker Licensed in KY & IN
Elaboration:
Early Claiming (Age 62):
.
Taking benefits at 62 means you'll receive a reduced benefit, but you'll also receive it for potentially longer if you live a long life. This can be beneficial if you have immediate financial needs or a shorter life expectancy.
Full Retirement Age (Around 67):
.
This is the age at which you're entitled to the full, unreduced retirement benefit based on your earnings record.
Delayed Claiming (Age 70):
.
Delaying until 70 will result in the highest possible monthly benefit due to delayed retirement credits, but you'll also receive it for a shorter period.
Factors to Consider:
Life Expectancy:
.
If you believe you'll live longer than average, delaying your claim until age 70 may be more advantageous due to the higher monthly benefit.
Health:
.
If you have health issues or expect a shorter life expectancy, claiming early might be preferable.
Financial Needs:
If you have immediate financial needs or need income to cover expenses, claiming early might be necessary.
Other Retirement Assets:
If you have sufficient investments or other retirement savings, you may be able to delay claiming Social Security and let your investments grow.
Tax Implications:
Social Security benefits are subject to federal income tax, and the amount of tax you pay can vary based on your other income.
Medicare:
Remember that Medicare eligibility begins at age 65, so if you claim Social Security early, you'll need to cover health insurance costs until then.
Answered by Fred Manas on May 20, 2025
Agent Licensed in NY, CT, DC & 7 other states
Answered by Vachik Chakhbazian on May 18, 2025
Agent Licensed in CA, AL, AR & 22 other states
I personally would take it as early as possible. Since SSI provides regular Cost Of Living Raises, by the time you reach age 70 you will be collecting the "full" amount you would have gotten.
Answered by Marcie Barnes on May 10, 2025
Agent Licensed in TX, AK, AL & 48 other states
Answered by Glenn Alterman on May 10, 2025
Broker Licensed in TX, AZ, CA & FL, NJ, OH & TN
Answered by Gary Haft on May 26, 2025
Agent Licensed in FL, AL, DC & 9 other states
Answered by Douglas Carney on May 10, 2025
Broker Licensed in FL, GA, NC, OK & TX
Answered by Adriana De la Cruz on May 23, 2025
Broker Licensed in TX, AZ, CA & NM
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