5 Things to Consider Before Signing Up for Social Security
Maximizing your Social Security benefits takes thoughtful planning, discipline and, for many, the ability to wait a few years.


One of the most important decisions you’ll make in retirement is when to sign up for Social Security.
There are many factors to consider before you sign up, because your decision will have a significant impact on the amount of benefits you will receive.
Given that pensions are becoming less common, your Social Security decision is more important than ever. Here’s a look at five important things to consider:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
- How many years of work are factored into your payments? Your Social Security payments are calculated based on the 35 years in which you earn the most. If you don’t work for 35 years, zeros are averaged into the calculation. That results in a lower payout. Like I teach my children, zeros hurt averages, so the more years you work, the better your payout should be.
- The advantages of delaying claiming. Social Security payments are reduced if you claim them before your full retirement age. Workers who sign up at age 62 in 2017 will get 25.8% smaller monthly payments than if they wait until their full retirement age of 66 and two months. Monthly payments increase if you delay starting them past your FRA — which would be between 66 and 67 for those born in 1955 and later — culminating in up to a 30.7% greater benefit if you sign up at age 70. Delaying payments even a year or two could have a large impact on the lifetime amount of your benefit.
- Spousal benefits. Married couples are eligible to claim a Social Security payment worth as much as 50% of the higher earner’s benefit, if that’s more than they can get based on their own work record. When the first spouse passes away, the surviving spouse will retain the larger of the two benefits, with the smaller benefit being eliminated. Make sure to know both your benefit and your spouse’s benefit before claiming.
- When Social Security benefits are taxed. Up to half of your Social Security income could be taxable if your provisional income falls between $25,000 and $34,000 if you’re single (for couples it’s between $32,000 and $44,000). Provisional income is defined as your adjusted gross income plus any tax-free interest plus 50% of your benefits. And the portion of your Social Security benefit that could be taxed rises to up to 85% if you go above those income limits. Understanding how taxes work and if it makes sense to utilize other assets could present a significant tax savings.
- Your break-even age. People who claim benefits early at age 62 may start getting their checks sooner, but they’ll be locked in at a lower payment than if they waited. Over the course of their lifetimes, this difference could add up to a significant amount of money. Those who start benefits at 70 get much larger payments when they finally do start claiming. Once you live until a certain age — the break-even point — the lifetime payment amount will be equal, whether you claim early or late, and if you live beyond that, you will come out ahead by delayed claiming. So, knowing your life expectancy, health and family history could play a role in the decision on when to claim benefits.
This is just the tip of the iceberg when considering your Social Security claiming options. Careful and thoughtful analysis should be applied and the help of a professional financial adviser could make the decision clearer.
Investment advisory services provided through New River Financial Group LLC, a registered investment adviser offering advisory services in the state of Virginia and other jurisdictions where exempted. New River Financial Group LLC d/b/a Martin Wealth Solutions.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Jim Martin is the president and founder of New River Financial Group with offices across Virginia. A Registered Financial Consultant and Accredited Asset Management Specialist, he has passed the Series 66 and Series 7 exams and is an insurance professional. Martin focuses on comprehensive financial planning to help individuals and business owners take control of their financial future.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Walmart Takes on Prime Day With Competing July Deals Event
Walmart is launching its own multi-day sales event to rival Amazon Prime Day — and it could be a smart time to shop, even if you're not a member.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet Spot
Converting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)
If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on Vacation
Here are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
Investing Professionals Agree: Discipline Beats Drama Right Now
Big portfolio adjustments can do more harm than good. Financial experts suggest making thoughtful, strategic moves that fit your long-term goals.
-
'Doing Something' Because of Volatility Can Hurt You: Portfolio Manager Recommends Doing This Instead
Yes, it's hard, but if you tune out the siren song of high-flying sectors, resist acting on impulse and focus on your goals, you and your portfolio could be much better off.
-
Social Security's First Beneficiary Lived to Be 100: Will You?
Ida May Fuller, Social Security's first beneficiary, retired in 1939 and died in 1975. Today, we should all be planning for a retirement that's as long as Ida's.
-
An Investment Strategist Demystifies Direct Indexing: Is It for You?
You've heard of mutual funds and ETFs, but direct indexing may be a new concept ... one that could offer greater flexibility and possible tax savings.
-
Q2 2025 Post-Mortem: Rebound, Risks and Generational Shifts
As the third quarter gets underway, here are some takeaways from the market's second-quarter performance to consider as you make investment decisions.