Santonocito and Associates

(425) 830-6612

Retirement Read Time: 3 min

When Should You Take Social Security

The Social Security program allows you to start receiving benefits as soon as you reach age 62. The question is, should you?

Monthly payments differ substantially depending on when you start receiving benefits. The longer you wait (up to age 70), the larger each monthly check will be. The sooner you start receiving benefits, the smaller the check.

From the Social Security Administration’s point of view, it’s simple: if a person lives to the average life expectancy, the person will eventually receive roughly the same amount in lifetime benefits, no matter when they choose to start receiving them. In actual practice, it’s not quite that straightforward, but the principle holds.

The key phrase is “if the person lives to average life expectancy.” If a person exceeds the average life expectancy and has opted to wait to receive benefits, they will start to accumulate more from Social Security.

The chart shows how Social Security benefits accumulate for individuals who started to receive at ages 62, 67, and 70. The person who started to receive benefits at age 62 would accumulate $327,600 by the age of 85. Conversely, the person who started to receive benefits at age 70 would accumulate $386,880 by the age of 85. The example assumes a retirement benefit of $1,625 at age 67. It does not assume COLA.

Source: Social Security Administration, 2022

There is no single “right” answer to the question of when to start benefits. Many base their decision on family considerations, economic circumstances, and personal preferences.

If you have a spouse, the decision about when to start benefits gets more complicated – particularly if one person’s earnings were considerably higher than the other's. The timing of spousal benefits should be factored into your decision.

When considering at what age to start Social Security benefits, it may be a good idea to review all the assets you have gathered for retirement. Some may want the money sooner based on how assets are positioned, while others may benefit by waiting. So, as you near a decision point, it may be best to consider all your options before moving forward.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Important Birthdays Over 50

Important Birthdays Over 50

Here's a look at several birthdays and “half-birthdays” that have implications regarding your retirement income.

How Stocks Work

How Stocks Work

Understanding how a stock works is key to understanding your investments.

Consider These 3 Things Before Driving Off the Lot

Consider These 3 Things Before Driving Off the Lot

There are a few things to consider when buying or leasing your next vehicle.

 

Have A Question About This Topic?







Thank you! Oops!

Will Power

Preparing for the eventual distribution of your assets may not sound enticing. But a will puts the power in your hands.

Fixed or Variable Mortgage, Which Should You Pick?

When selecting a mortgage, one of the most critical choices is between a fixed or variable interest-rate mortgage.

Who Is Your Trusted Contact?

This investment account question is vital and answered as early as possible.

View all articles

What's My Potential Estate Tax?

This calculator helps estimate your federal estate tax liability.

Lifetime of Earnings

Estimate how much you have the potential to earn during your working years.

Saving for College

This calculator can help you estimate how much you should be saving for college.

View all calculators

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

View all presentations

Choosing a Mortgage

Selecting a mortgage isn't an easy process. Get a better understanding of how professionals make the right decisions.

The Real Cost of a Vacation Home

What if instead of buying that vacation home, you invested the money?

A New Way to Look at Your Bucket List

Bucket lists don’t have to be for tomorrow.

View all videos