Joel T. Barjenbruch, CFP, CLU, RICP, ChFC, LACP | Founder of JS Financial.
If there’s one question that comes up in every retirement conversation, it’s this: “When should I take Social Security?”
It sounds simple, though it’s anything but. For a married couple alone, there can be hundreds of different ways to claim benefits. And while it’s tempting to search for a perfect, one-size-fits-all answer, the reality is more practical than that.
The goal isn’t perfection. It’s making a smart, informed decision based on how Social Security actually works.
Starting With The Rules, Not The Rumors
Social Security has a few key guardrails that shape every decision.
First, you can claim as early as age 62. That’s the earliest entry point, no exceptions. On the other hand, there’s no benefit to waiting past age 70. Between those two ages, your benefit increases gradually the longer you delay.
Then there’s what’s called your “full retirement age,” which falls somewhere between 66 and 67 for most people today, depending on your year of birth. Despite the name, this isn’t a finish line. It’s simply a reference point the government uses to calculate reductions or increases in your benefit.
Claim early, and your monthly check is reduced. Wait longer, and it grows—roughly 8% per year past full retirement age.
That sounds straightforward, but here’s where people get tripped up: They assume there’s a universal, “best” age to file. It’s not that simple.
The Question Everyone Asks—And The One That Matters More
In theory, the optimal claiming strategy comes down to one unknowable variable: how long you’ll live. If you knew that, you could run the math backward and pinpoint the exact right time to claim.
But since no one knows the second date on their tombstone, that approach doesn’t hold up in real life.
So instead of chasing a perfect answer, a better question is this: When do you actually need the income?
That shift in thinking changes everything.
Social Security is part of a broader income strategy. When your paycheck stops, your income has to come from somewhere. For most retirees, that means a combination of Social Security and personal savings.
And here’s where a practical strategy starts to emerge.
Thinking About What You’re Preserving, Not Just What You’re Taking
One of the most overlooked aspects of Social Security is what happens when you pass away.
For many retirees, Social Security makes up a meaningful portion of income. But unlike your investment accounts, it doesn’t leave much behind. Outside of a surviving spouse benefit, the legacy value is minimal.
Your portfolio, on the other hand, is different. Whatever value remains can pass to the next generation.
That leads to a simple but powerful framework: If you have the option, draw income from Social Security first and preserve your assets.
It’s not about maximizing every dollar from the system. It’s about coordinating your income sources in a way that supports both your lifestyle and your legacy.
Overlooking The Hidden Rules
Timing isn’t the only factor. There are a few lesser-known rules that can significantly impact your benefits.
For example, if you claim Social Security before reaching full retirement age and continue working, you may trigger what’s called an earnings reduction. Earn above a certain threshold, and your benefits can be reduced.
Once you reach full retirement age, that restriction disappears. You can earn as much as you want without reducing your benefit.
Then there’s taxation.
Up to 85% of your Social Security income can be taxable at the federal level, depending on your overall income. And unlike many financial thresholds, the income limits that determine this haven’t been meaningfully adjusted for inflation over time—which means more retirees are affected each year.
This is where coordination with the rest of your financial plan becomes critical. The way you draw income from investments can directly impact how much of your Social Security gets taxed.
Is Social Security Really At Risk?
It’s a fair question and one that gets a lot of attention.
There’s no doubt the system faces long-term funding challenges. But it’s also deeply embedded in the financial lives of millions of Americans. For many retirees, it’s not a bonus—it’s a necessity.
That reality makes dramatic cuts unlikely without significant warning or gradual adjustments.
Changes may come in the form of shifting retirement ages, modified benefits or tax adjustments. But a complete disappearance of the system isn’t a scenario most planners build around.
In other words, it’s reasonable to plan for Social Security but not to rely on it exclusively.
A More Useful Answer
So, when should you take Social Security?
Not at 62 because it’s available. Not at 67 because it’s “full.” Not at 70 just because it’s the maximum.
You take it when it fits your plan.
That means evaluating your income needs, your health, your investable assets, your tax situation and your spouse’s benefit (if applicable).
For some, that will mean claiming early to reduce pressure on their portfolio. For others, it will mean delaying to secure a higher guaranteed income later in life.
The right decision isn’t about chasing the highest possible check. It’s about building a coordinated strategy that works in the real world.
Because at the end of the day, Social Security isn’t just a benefit. It’s one piece of a much larger retirement puzzle, and how you use it matters far more than when you start it.
Securities and investment advisory services offered through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial. LPLE and LPL Financial are not affiliated with JS Financial, Inc. or Prudential. ​The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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