One of the most frequently asked questions in retirement planning is: “What’s the best age to start receiving Social Security benefits?” The answer depends on a variety of personal factors, and there is no universal approach that fits everyone.

At WealthVisory, we believe in a structured approach to retirement planning as part of our SmartMethod process. Understanding your Social Security options and their impact on your overall retirement strategy is a crucial step toward long-term financial security.

When to Start Receiving Retirement Benefits

The Social Security Administration (SSA) allows individuals to begin receiving benefits as early as age 62. However, benefits are permanently reduced if taken before reaching full retirement age (FRA), which varies based on birth year. Conversely, delaying benefits beyond FRA can increase monthly payments, providing long-term financial advantages.

Key Considerations for Your Decision

Determining when to start Social Security benefits depends on several personal and financial factors:

Current and Future Cash Needs: If you need income sooner, starting benefits early may be necessary. If you have other sources of income, delaying benefits could be more beneficial.

Health and Longevity: Individuals with longer life expectancies may benefit from delaying benefits, maximizing lifetime Social Security income.

Employment Plans: If you plan to work past FRA, your earnings could impact Social Security benefits if claimed early.

Spousal and Survivor Benefits: Married couples should consider how claiming decisions affect spousal and survivor benefits. A higher-earning spouse delaying benefits can increase the survivor’s financial security.

How Delaying Benefits Increases Monthly Payments

Your Social Security benefit amount is calculated based on your lifetime earnings. Claiming before FRA results in a permanently reduced monthly benefit, while delaying up to age 70 increases it through delayed retirement credits.

For example, if your FRA benefit at age 67 is $1,000 per month:

  • Claiming at age 62 reduces benefits by about 30%, yielding $700 per month.
  • Claiming at age 70 increases benefits by roughly 24%, yielding $1,240 per month.

This increase remains in effect for life, providing greater financial stability in later years.

Retirement May Be Longer Than Expected

With advancements in healthcare, many retirees live well into their 90s. According to SSA estimates:

  • 1 in 3 individuals reaching age 65 today will live to at least age 90.
  • 1 in 7 will live to at least age 95.

Because Social Security provides lifelong income, factoring longevity into your claiming decision is essential to avoid financial shortfalls in later years.

The Impact of Working in Retirement

Working past FRA has no impact on Social Security benefits. However, if you claim benefits before FRA and earn above certain limits, a portion of benefits may be withheld. The SSA adjusts benefits once FRA is reached, potentially increasing future payments to compensate for withheld amounts.

Don’t Forget Medicare

Even if delaying Social Security benefits, individuals should enroll in Medicare at age 65 to avoid late enrollment penalties. Understanding the interaction between Medicare and Social Security is an essential part of a comprehensive retirement strategy.

Making an Informed Decision

As part of WealthVisory’s SmartMethod, we help clients assess their Social Security options in the broader context of their retirement goals. Evaluating cash flow, longevity expectations, and tax implications can provide clarity on the optimal claiming strategy for your situation.

Consulting with a financial advisor can help ensure your decision aligns with your long-term financial well-being. Contact WealthVisory to discuss your personalized retirement strategy and make the most of your Social Security benefits.