Pure’s Associate Advisor, Joey Bailey, CFP®, CPA, simplifies Social Security claiming options for those nearing retirement and wondering when to start collecting benefits.
Transcript
If you’re in your 50s or early 60s, Social Security is probably starting to feel a lot more real. Maybe you’ve already gotten a statement in the mail, or you’ve caught yourself doing some rough math in your head.
And chances are, one question keeps coming up: When should I actually start collecting?
Here’s the good news — it’s not as complicated as it sounds. Let’s break it down.
First thing to know: there’s no single “right” age to claim Social Security. What you have is a window — anywhere from age 62 all the way to 70.
Think of it like a dial. Turn it early, and you get smaller checks sooner. Turn it later, and you get larger checks down the road. Neither is automatically better — it all depends on your situation.
Let’s walk through the three key moments in that window.
Age 62 is the earliest you can claim. The upside? You start getting money sooner. The downside? Your monthly benefit is permanently reduced — by as much as 30%. If you’re in great health and expect a long retirement, that reduction adds up over time. But if you need the income now, or have health concerns, claiming early might make sense for you.
Your Full Retirement Age — or FRA — is either 66 or 67, depending on when you were born. This is your “no penalty” zone. You get 100% of the benefit you’ve earned. No reduction, no bonus — just your full amount.
Age 70 is where the real upside kicks in. For every year you wait past your FRA, your benefit grows by about 8%. That’s a guaranteed increase that’s honestly hard to beat anywhere else. There’s no reason to wait past 70 though — the credits stop there.
So how do you know what’s right for you? Start by asking yourself a few questions.
How’s your health? If you have a family history of longevity and you’re feeling good, waiting longer could mean significantly more money over your lifetime.
Are you still working? If you claim before your Full Retirement Age and you’re still earning income, your benefit can be temporarily reduced. Once you hit FRA, that goes away — but it’s worth knowing upfront.
Do you have a spouse? Because if so, this decision doesn’t just affect you. The two of you can actually coordinate when each of you claims to maximize your total household income. Which brings us to our next point…
If you’re married, there’s an extra layer of strategy worth knowing about. Spouses can claim based on their own work record or up to 50% of their partner’s benefit — whichever is higher.
And here’s the big one: if the higher earner delays claiming until 70, it locks in a larger benefit that can also carry over as a survivor benefit. That’s a meaningful safety net for whoever lives longer.
It’s one of those things that’s easy to overlook, but it can make a real difference over the course of a retirement.
Here’s the bottom line: you’ve spent decades earning this benefit. It’s worth spending a little time figuring out the smartest way to use it.
A great place to start is SSA.gov — they have a free retirement estimator that shows you what your benefit looks like at different claiming ages.
While this tool is a great starting point, it’s valuable to work with a financial professional who can help you map out a strategy for your personalized plan that fits your whole picture.
To learn more about what options you have, take advantage of our free Social Security analysis. Discover whether it makes sense for you to delay taking your Social Security benefits, identify the best claiming strategies to maximize your benefit amount, see how recent changes to Social Security may impact your benefit, and determine if you should claim your spousal or survivor benefits.
Thanks for watching, and remember, the best time to start thinking about your options is right now, while you still have them.
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- Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
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- Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
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- Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
CPA – Certified Public Accountant is a license set by the American Institute of Certified Public Accountants and administered by the National Association of State Boards of Accountancy. Eligibility to sit for the Uniform CPA Exam is determined by individual State Boards of Accountancy. Typically, the requirement is a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional one-year study. All CPA candidates must pass the Uniform CPA Examination to qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. CPAs are required to take continuing education courses to renew their license, and most states require CPAs to complete an ethics course during every renewal period.
