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 5 licensed agents
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
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 Douglas Carney on May 10, 2025
Broker Licensed in FL, GA, NC, OK & TX
Agents: Share Your Expertise
Have insights or experiences related to this topic? Help others by sharing your knowledge and answering this question.
Seniors: Ask a Question of Your Own
Questions are generally answered within 1 to 3 business days. Receive valuable perspectives from multiple licensed agents and brokers.
Ask a Question