Social Security: A Retirement Decision Worth Getting Right
As you think about retirement, one question deserves more attention than it often gets: When should I start Social Security?
For many households, Social Security is more than a monthly benefit. It can be an important source of lifetime income and, when coordinated thoughtfully with your investment portfolio and tax strategy, can play a meaningful role in your overall retirement plan.
Timing Matters
You can generally begin retirement benefits as early as age 62, but claiming before your Full Retirement Age (FRA) permanently reduces your monthly benefit. On the other hand, delaying benefits beyond FRA can increase your monthly benefit until age 70.
For example, individuals born in 1960 or later have a Full Retirement Age of 67. Waiting until age 70 results in a benefit equal to 124% of the benefit available at FRA.
That doesn't mean waiting until 70 is automatically the right decision. The best claiming strategy depends on your health, longevity expectations, other sources of income, tax situation, portfolio, and family circumstances.
The Bigger Picture
For affluent households, the Social Security decision shouldn't be made in isolation.
Before claiming, it can be valuable to consider:
- Portfolio withdrawals: Could your investment portfolio provide income while you delay Social Security?
- Taxes: How might the timing of benefits affect your taxable income and overall tax strategy?
- Spousal benefits: What claiming strategy makes the most sense for both spouses?
- Survivor benefits: How could today's decision affect the surviving spouse's future income?
- Longevity: How valuable is a larger, inflation-adjusted income stream later in retirement?
- Employment: If you're still working before Full Retirement Age, your earnings can affect benefits under the Social Security earnings test.
A 2026 Perspective
Social Security benefits received a 2.8% cost-of-living adjustment for 2026. The maximum taxable earnings level also increased to $184,500, while the maximum monthly benefit for someone retiring at Full Retirement Age is $4,152 in 2026.
These numbers are useful to know, but the more important question is: How does Social Security fit into your personal retirement-income strategy?
There is rarely a one-size-fits-all answer.
If you are approaching retirement—or if you have already reached the point where you're considering when to claim—we would be happy to review how different Social Security decisions could affect your broader financial plan.
Please reach out to us if you'd like to discuss your options.