When Should You Take Social Security? It Depends.

If you were hoping for a simple, one-size-fits-all answer to the question “When should I take Social Security?”, I regret to inform you that this is not that kind of article. You’ve wandered into the land of nuance, trade-offs, and the ever-popular answer that we financial professionals love: It depends.

But don’t leave just yet. The good news is that figuring out the right time for you to claim Social Security isn’t a mystical art. It’s a process, a very personal one, that takes into account your health, work plans, income needs, taxes, and more. So let’s unpack what goes into this decision.

You can claim Social Security retirement benefits as early as age 62 or as late as age 70. Your “full retirement age” (FRA) is somewhere between 66 and 67, depending on when you were born. Claim early and you’ll receive a reduced benefit. Wait past your FRA and you’ll earn delayed retirement credits, boosting your benefit by up to 8% per year until age 70 (which is a pretty fantastic rate of return, by the way).

Factor #1: How Long Are You Planning to Work?

Still plugging away in your career at 64 and not quite ready to call it quits? That’s a big clue you may want to delay Social Security.

Why? Because if you claim before full retirement age and continue working, your benefits may be temporarily reduced due to the earnings limit. In 2025, that threshold is $22,320. Go over it, and Social Security withholds $1 for every $2 you earn above the limit. But don’t panic. The withheld benefits aren’t gone forever; once you reach full retirement age, Social Security recalculates your benefit to account for what was withheld, effectively giving it back to you over time.

Factor #2: The Taxman Cometh

Ah, taxes. The stealthy pickpocket of your golden years.

Here’s the twist: up to 85% of your Social Security benefits could be taxable, depending on your income. So, if you’re still working or drawing from pretax accounts like a traditional IRA, claiming too early could mean paying more tax on your benefits than necessary.

This is where Roth conversions can be your best friend. If you have a few lower-income years before age 70 (say, you’ve retired but haven’t claimed Social Security yet), that’s often prime time to convert traditional IRA dollars to Roth. Do it while you’re in a lower tax bracket, and you not only reduce future taxes but give your Social Security time to keep growing.

Factor #3: Life Expectancy – Yours, Your Spouse’s, and the Family Crystal Ball

Let’s talk about the elephant in the retirement room: how long you’re going to live.

If your family tree is filled with centenarians and you’re in solid health, delaying Social Security could pay off. The longer you live, the more those larger delayed benefits add up.

For married couples, Social Security isn’t just a personal decision. It’s a joint strategy. The key move? Delay the higher-earning spouse’s benefit as long as possible, ideally until age 70. That larger benefit doesn’t just provide more income during retirement; it also becomes the survivor benefit if the higher earner passes first. That means one smart delay can boost income for both lives.

Meanwhile, the lower-earning spouse can often claim earlier, especially if you need the cash. Their benefit is smaller and doesn’t grow as much with delay, so the opportunity cost is lower. They might also be eligible for a spousal benefit, up to 50% of the higher earner’s benefit at full retirement age, but only if the higher earner has already filed.

Also important: survivor benefits are based on the deceased spouse’s benefit, claimed or potential. Claiming early could shrink not only your income, but your spouse’s future income too. That’s a legacy haircut no one asked for.

Factor #4: Cash Flow Needs and Opportunity Cost

This one’s practical: do you need the income?

If you’re retiring at 65 and don’t have enough coming in from other sources, claiming Social Security early might simply be the most practical move. Optimization is great, but it won’t pay the utility bill.

Don’t Forget Medicare

One wrinkle worth noting: Medicare eligibility kicks in at 65. If you’re not claiming Social Security yet, you’ll need to proactively enroll in Medicare (Part A and B), because you won’t be auto-enrolled. And you’ll need to pay those premiums out of pocket rather than having them deducted from your Social Security check.

So... When Should You Claim?

Deciding when to claim Social Security might seem simple, but it touches every part of your financial life. Income, taxes, longevity, healthcare, even your spouse’s future are all on the table.

It’s not a spreadsheet answer. It’s a life answer. And ideally, it’s part of a broader, personalized retirement income plan that works in concert with your investments, taxes, and lifestyle goals.

So before you claim, pause. Think. Strategize. And better yet, talk to your Allworth advisor who speaks fluent “Social Security” and won’t just say “62 is fine.”

Because you’re not just picking a date. You’re shaping your retirement.

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