When it comes to Social Security, it can be easy to want to dive right in. Doesn’t it seem like free money? Well, that might not be the best way to think about it. For some folks, Social Security isn’t as simple as turning 62 and claiming your benefits. In fact, many who plan to do that may be leaving a lot of their benefit on the table.
There are a lot of rules and regulations to Social Security, and knowing when to claim requires an in-depth grasp of your complete financial picture. It’s tough to give general advice about Social Security because every person’s situation is different. Maybe you don’t have much in savings, so you’ll be relying on Social Security to carry you through your retirement. Maybe you have robust retirement savings and can afford to delay your claim as long as possible. Maybe you plan on working until you hit the “full retirement age” and then plan to claim. Everyone’s strategy and financial situation are unique to them, so any generic advice you may have heard isn’t necessarily going to apply to your situation.
For example, many people recommend waiting as long as possible to claim your benefits. You’ll stop receiving benefits for waiting to claim by age 70, so that is generally the latest that people will claim.[1] But what if you’re not in good health at age 62? It may not make sense to try to wait until you’re 70 to claim if you need help with your medical payments. Also, if you don’t think that you’ll live to be 70 years old, it might not make much sense to hold off on claiming.
Another factor to keep in mind: Under specific circumstances, a widow or widower can receive survivor benefits if their spouse has claimed Social Security but has passed away. There are many rules and regulations to this kind of arrangement, but it is possible to receive Social Security survivor benefits in the event of a partner’s passing.[2] Like many Social Security benefits, the rules and regulations around this type of benefit could make this a more or less viable option, depending on your unique situation.
As you can see, it’s impossible to give one-size-fits-all advice for Social Security. Deciding when to take Social Security is one of the more complex questions in retirement planning. It requires a holistic understanding of your own situation and detailed knowledge of Social Security rules and regulations. If you are unsure about when you should claim Social Security, reach out to one of our professionals for a complimentary review of your finances.
