Deciding when to claim your Social Security benefits is a crucial decision that can significantly impact your retirement income. Whether you’re facing health challenges, aiming to maximize spousal benefits, or contemplating a longer retirement, knowing when to claim based on these factors can make a substantial difference. In between 62 and 70, the longer you wait, the more you get on a per-month basis. But during the period you wait to claim, you’ll still need a source of income if you plan to retire. Consider the following scenarios to determine if claiming early or late aligns with your unique circumstances.
You need to stop working: consider claiming early
If you have some reason that you need to stop working, it may be worth considering claiming early.[1] Maybe you have a physically taxing job that you can’t handle anymore because you’re getting older, or maybe you recently got into an accident at work, and you won’t be able to do your job anymore. Either way, it may be a good idea to consider claiming early to supplement your retirement income.[1]
You’re in poor health: consider claiming early
If your health is poor, Social Security may help you to offset medical costs. Also, if you don’t expect to live to be 70 years old, then waiting to claim may not be a good idea. Considering these kinds of things is never easy, but it can be necessary in order to get a good idea of when the right time to claim is for you.
You are looking to get spousal benefits: consider claiming early
If you are eligible for spousal benefits and want to gather income as soon as possible, it may be worth considering claiming early. Taking this route can allow a couple to begin generating income, which may be beneficial depending on your situation.[1]
You think you’ll have a long retirement: consider claiming late
If you are a healthy person with a healthy lifestyle and are in better shape than your peers, you may want to consider claiming late because you could receive more. If you claim at 70 and live to be about 83, you have a good chance of claiming more total dollars than someone who lives to be 83 who claimed at 63—also depending on income levels during working years. So, claiming late may be a good idea if you have a longer life expectancy and will be able to utilize many years of increased benefits.[1]
You have a lot of savings or other sources of income: consider claiming late
If you don’t need Social Secur