Should You Claim Social Security Early or Late? An Expert Guide

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When to start claiming Social Security is an important decision in retirement, and it's personal.

If you were to ask 10 different people what age they would recommend you start claiming Social Security benefits, you might get 10 different responses.

Some recommend taking it when you're first eligible at 62, others say wait until 65, 67 or even 70.

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It's a delicate topic because Social Security has an uncertain future — the Social Security trust fund is set to run out in 2033 — and the right decision truly depends on your unique situation.

The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

Factors like you and your partner's benefit amounts, age, taxes and break-even points all come into play, and they can be vastly different from person to person.

There isn't a cookie-cutter recommendation that financial advisers can provide, but when determining the ideal age to optimize Social Security benefits, here are a few things that everyone should consider.

It starts by viewing Social Security as another asset in your retirement portfolio. Like your 401(k) plan or IRA, Social Security provides a regular paycheck that can add up to a lot of money over time.

For example, if you start claiming benefits at age 62 and you stand to earn $2,000 a month with a life expectancy of 87, you would collect $600,000 throughout your lifetime. That's a significant amount.

However, your Social Security benefit amount increases the longer you wait to claim. If you wait until age 70 to claim full Social Security payments, you can collect 80% more annually if you start at 62.

Not everyone should wait until age 70, but approaching your benefits the same way as we would an IRA can help you determine the right age to optimize the amount of money you receive over your lifetime.

Remove emotion

Many Americans are worried about the future of Social Security. — nearing retirement at ages 45 to 60 — are worried that Social Security won't be available when they retire.

Their fears stem from the fact that the Social Security trust fund is set to be depleted in eight years. Additional spending included in President Trump's recent One Big Beautiful Bill could speed up that timeline.

This wouldn't mean Social Security payments would stop; rather, Americans would receive just 77% of their benefits.

Don't let this uncertainty affect your timeline.

We don't know what Social Security will look like in 30 years, but we also can't predict it. Making an impulsive decision to start your benefits at 62 because you're worried it won't be available at 70 could lead to a poor choice for your situation.

While we can't be 100% certain, Social Security is likely to exist in some form over the next decade. Remove your emotions and evaluate your unique situation.

A financial adviser can calculate multiple scenarios and determine which one is the best for you. If you would rather remove the stress of worrying about Social Security's availability, they can help you create a retirement plan that doesn't rely on this asset. That way, you're prepared for a future with or without the benefit.

Understand taxes

Taxes are included in everything we do, and Social Security is no exception. While the Big Beautiful Bill had a goal of eliminating taxes on Social Security, that didn't come to fruition.

That means you may have to pay taxes on up to 85% of your benefits if your total provisional income is more than $32,000 when filing jointly and over $25,000 when filing as an individual. Around half of beneficiaries pay taxes on their benefits.

If you're still working while receiving Social Security benefits, understand how that tax comes into play. There may be a day in the future when taxes on those earnings are eliminated, but we can't plan for what could happen in the future.

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Factor in your potential tax liability in your decision, just like you would with tax-deferred retirement assets and Roth conversions. If a day comes when taxes are eliminated, then you could enjoy extra, unexpected benefits.

Even though there is a lot of uncertainty around what Social Security could look like in the future, embrace it. Now is the opportunity to create a plan that can provide an informed decision about the best way to utilize Social Security.

Working with a financial adviser can help give you comfort in your retirement plan by determining what age makes sense for your unique circumstances, and giving you comfort in your financial future.

Investment advisory products and services made available through Impact Partnership Wealth, LLC ("IPW"), a Registered Investment Adviser. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Medalist Wealth Management is not affiliated with or endorsed by the U.S. government or any governmental agency. 4691669-07/25

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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As the Founder of Medalist Wealth Management in Grand Rapids, Mich., Matthew Eilers understands that each client’s financial journey is different. After learning to budget at a young age, he served as an adviser to the advisers for nearly 16 years. He used his unique expertise to create Medalist Wealth, where he helps clients create custom-tailored retirement plans designed to meet their vision for the future.