Understanding Your Claiming ChoicesYou understand the basics of how Social Security works. But deciding exactly when to claim your Social Security benefits can be a bit less straightforward. Depending on the timing, this decision can have a significant impact on your financial future. Let’s look at some pros and cons of starting benefits at some key milestone ages. |
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Understanding Full Retirement Age (FRA). Full Retirement Age is the age at which you can receive 100 percent of your Social Security benefits, and it is calculated based on your lifetime earnings. Knowing your FRA can help you determine the percentage of benefits you receive if you claim earlier or later.1,2,3 Claiming Social Security at 62. You can begin collecting at age 62, but this results in a reduction in benefits. If your FRA is 67, starting at 62 means receiving only 70 percent of your full benefit. This reduction occurs because payments decrease by a fraction for each month claimed before the FRA. However, claiming early could be worth considering if you face financial constraints or health issues in your early sixties.1,2,3 |
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Delaying Benefits Until 70. For each year you delay up to age 70, you’ll receive an 8 percent increase in your monthly benefit, thanks to delayed retirement credits. Depending on your situation, this additional boost could be worth waiting for. Just remember, your benefits will not continue to increase if you delay past age 70.1,2,3 |
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Factors Influencing Your Decision. If you’re starting to think the decision about when to claim is nuanced, personal, and unique to each person’s financial situation, you’re on the right track. Here are some additional factors to consider:
Tax Implications and Medicare. Social Security benefits may be taxable depending on your "combined income," which includes adjusted gross income, nontaxable interest, and half of your Social Security benefit. Your tax or accounting professional should be able to help you understand how your income will influence your Social Security benefits. Changing Your Mind. If you start receiving benefits and wish you had delayed, don’t worry. You have a grace period of 12 months in which you can withdraw your application (of course, you’ll need to repay any benefits received during this time). This allows you to reapply for your benefits later on. And remember, even after reaching your full retirement age, you can voluntarily suspend your benefits to earn delayed credits until age 70.3,4 Choosing when to claim Social Security benefits is a complex decision and comes with an array of personal and lifestyle factors to consider. However, the outcome is worth the effort. If you have questions about Social Security’s role in your retirement strategy, let’s talk. |
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Economic Context HighlightThe average Social Security retirement benefit in 2026 is approximately $2,071 per month. Claiming at 62 versus 70 may result in a difference of over 70 percent in monthly benefits, but the "right" choice depends entirely on individual circumstances.5 Getting Technical: Unique Scenarios and Social Security StrategySpecial Situations to Consider. Social Security rules have been updated to better accommodate unique financial situations, offering a wider range of strategies. Key changes include the repeal of certain pension-related offsets, guidelines for earning limits while working, and the ability to suspend benefits upon reaching full retirement age (FRA). Here’s what you need to know.6 Impact of Pensions on Benefit Amounts (WEP/GPO). Significant changes have been made with the elimination of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), thanks to the Social Security Fairness Act of 2023.7
Working While Receiving Benefits. You can continue working while collecting Social Security benefits, but your earnings may be subject to limits if you are under your full retirement age. These limits disappear once you reach FRA.8
Suspension Strategies at Full Retirement Age. Looking to delay and thereby increase your benefits? If the 12-month grace period for withdrawal has passed, or if you are already at your FRA, you can still voluntarily suspend your benefits to earn higher payments later.9,10
These updates and strategies provide greater flexibility and potential financial benefits for Social Security recipients. Whether considering working while receiving benefits, contemplating a withdrawal, or opting for a suspension, understanding these provisions can help you make informed decisions that align with your financial goals. |
1. SSA.gov, December 15, 2025 |
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.