Claiming Social Security at the Right Time Could Change Your Retirement

For many retirees, Social Security isn’t just a monthly deposit—it’s the foundation of their entire retirement income. But choosing when to claim it isn’t as simple as picking a birthday and signing paperwork. It’s a decision with lifelong consequences.

Claim too early, and you could lock in thousands less per year. Wait too long without a plan, and you might miss years of income you truly need. In a world where every dollar in retirement counts, the timing of your Social Security benefit is one of the most crucial financial decisions you’ll ever make.

The Case for Claiming Early (Age 62)

It’s tempting to start claiming benefits as soon as you’re eligible. After all, it’s your money—you’ve earned it.

Pros:

• Immediate Income: If you’re out of work, have health issues, or need to reduce withdrawals from your retirement accounts, early benefits can be a lifeline.
• Break-Even Strategy: If your life expectancy is shorter than average, collecting sooner may result in more total lifetime benefits.

Cons:

• Reduced Monthly Benefit: Claiming at 62 results in a permanent reduction—up to 30% less than if you waited until full retirement age (FRA).
• Working Penalty: If you’re still working, your benefits may be reduced further if your income exceeds certain thresholds.

This option can be helpful in specific cases, but many people claim early out of fear or misinformation—and that can cost them tens of thousands of dollars over their retirement.

The Value of Waiting (FRA to Age 70)

Delaying your claim past full retirement age earns you a powerful reward: larger monthly checks.

Pros:

• Boost to Your Retirement Income: For every year you wait past FRA, your benefit grows by about 8% annually until age 70.
  • The cost-of-living adjustments amplify this increased amount.
• Increased Survivor Benefits: A higher benefit means your spouse may also receive more after you’re gone.
• Protection Against Longevity Risk: Delaying benefits can be an effective hedge if you live into your 80s or 90s, ensuring income keeps up with your needs.

Cons:

• Delayed Regular Income: You need other income sources to bridge the gap until your benefit begins.
• Risk of Not Living Long Enough: If you die early, you may not “get your money’s worth” from delaying.

Still, for many retirees—especially those in good health or with longer life expectancies—waiting can result in hundreds of thousands more over a 30-year retirement.

Getting It Right

There’s no universal “best age” to claim Social Security. The real cost isn’t just financial—it’s missing out on the lifestyle you could’ve had. Get it wrong, and you might find yourself having to downsize, delay retirement, or rely more heavily on your savings. Get it right, and you can unlock consistent income and greater confidence in your future.

This is too important to guess on. A personalized claiming strategy can be the difference between scraping by and thriving in retirement. Click HERE to reach out to one of our professionals at Haven Financial Group today for a complimentary review of your finances—your future self will thank you.