The Best Age to Take Social Security? Here’s How I Decide With Clients Every Day
When people ask me about Social Security, the most common question I hear is: “What’s the best age to take it?” Everyone wants one magic answer but the truth is, there isn’t one. The right age is the one that fits your life, your health, and your retirement strategy. If you simply chase the biggest check, you might end up hurting yourself financially in other ways. The timing of Social Security impacts taxes, portfolio withdrawals, required minimum distributions, and even the financial stability of a surviving spouse. That’s why timing this decision correctly is one of the most important steps in any retirement plan.
To understand when to claim, you first have to understand how your benefit is calculated. Social Security is based on your Primary Insurance Amount (PIA), which comes from your highest 35 years of earnings. If you don’t have 35 years, the Social Security Administration fills in the missing years with zeros. That’s one reason why some people keep working to replace lower-earning or zero-earning years with higher-income ones. After that, your PIA is indexed to inflation, ensuring it reflects today’s dollars when you eventually claim it.
A lot of retirees want to collect as early as possible, which you can do at 62. But collecting early comes with a cost: about an 8.3% reduction for every year before your full retirement age. If your full retirement age is 67, claiming at 62 means locking in the lowest possible benefit for the rest of your life. There’s also an earnings test. In 2025, if you collect before full retirement age and still work, you can only earn up to $23,400 before Social Security withholds $1 for every $2 you exceed the limit. That’s a surprise many people don’t see coming.
If you wait until your full retirement age, typically 67, you get the benefit you’ve earned with no reductions and no earnings cap. You can work as much as you want without losing benefits. And while your benefit may be taxable at the federal level (up to 85%), most states don’t tax Social Security at all. For many retirees, full retirement age is the sweet spot between “I don’t want to wait” and “I don’t want to take a massive reduction.”
But if you really want to maximize lifetime income, delaying until age 70 is the most powerful lever you have. For every year past full retirement age, your benefit grows by 8%. By age 70, that’s a 24% increase compared to claiming at 67. For couples, this can be even more valuable delayed benefits create a higher surviving spouse benefit down the road. If you’re in good health with a family history of longevity, delaying Social Security can be one of the smartest financial moves you make. It also gives you breathing room to complete Roth conversions, reduce future tax burdens, and strategically manage your portfolio early in retirement.
Of course, not everyone should delay. If you’re in poor health or have a shortened life expectancy, taking benefits early can give you access to income while you’re still able to enjoy it. Market conditions also matter. If the market is down, taking Social Security early may help you avoid withdrawing from investments at the worst possible time. This is where personal circumstances matter more than the math.
The key is to stop thinking about Social Security as a date-driven decision and start viewing it as part of your overall retirement strategy. It’s not just about when you take it, it’s about why. How does Social Security fit into your income plan? How does it support your withdrawal strategy? What does it mean for taxes, RMDs, and long-term financial security? When you stop chasing the biggest possible check and start aligning the benefit with your lifestyle and goals, everything becomes clearer.
Whether you plan to retire early, work part-time, delay to 70, or claim at full retirement age, make sure your decision supports the bigger picture: the retirement you want to live, not just the number on your statement.
You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.
Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.
