When Should You Claim Social Security?
One of the most important retirement decisions you'll make is when to start claiming Social Security benefits. You can begin as early as age 62, but waiting until your Full Retirement Age (FRA) or even age 70 can significantly increase your monthly benefit.
The Impact of Claiming Age
Your benefit amount varies dramatically based on when you claim:
- Age 62 (Early): Permanent reduction of up to 30% from your FRA benefit
- Full Retirement Age (66-67): 100% of your calculated benefit
- Age 70 (Delayed): 124-132% of your FRA benefit (8% increase per year)
Example
If your FRA benefit is $2,000/month, claiming at 62 gives you ~$1,400/month, while waiting until 70 gives you ~$2,480/month - a $1,080 monthly difference!
Spousal Coordination Strategies
Married couples have additional strategies available:
1. The Higher Earner Delays
If one spouse earned significantly more, having them delay until 70 maximizes the survivor benefit, which is critical since the surviving spouse receives only the higher of the two benefits.
2. Claim and Suspend (Limited)
While the "claim and suspend" strategy was largely eliminated, some coordination strategies remain for spousal benefits.
Break-Even Analysis
A common question is: "When do I break even if I delay claiming?" Generally:
- Delaying from 62 to FRA breaks even around age 78-80
- Delaying from FRA to 70 breaks even around age 80-82
However, this analysis should also consider your health, other income sources, and survivor benefits.
Using Bullseye for Social Security Planning
Bullseye's projection engine incorporates your Social Security benefits at different claiming ages, showing you the long-term impact on your retirement finances. You can run scenarios comparing different claiming strategies to find the optimal approach for your situation.
