The best time to claim Social Security isn’t determined by age alone.
Many years ago, when we first began hosting retirement education workshops, the series was called Financial Foundations. At the time, we focused on many of the core principles of financial planning.
But as the years went by and many of my clients moved closer to retirement, one thing became very clear: For many of them—perhaps even most—Social Security wasn’t just another retirement benefit. It had become one of the primary sources of income they would rely on throughout retirement.
So naturally, Social Security became one of the cornerstone topics in our retirement planning discussions, and to this day, one of the most common questions I hear is:
“When should I take Social Security?”
It’s an important question, but I believe many people start by asking the wrong one.
It’s About More Than Getting the Biggest Check
Whether I’m meeting with pre-retirees from Pewaukee, Delafield, Hartland, or Milwaukee – I’ve found that many people focus on one goal:
“How do I get the biggest monthly Social Security check?”
While that certainly sounds logical, the reality is that there are many factors to consider when deciding the best time to claim Social Security.
For example:
- Will you continue working after you begin receiving benefits?
- Are you married, and how might your decision affect your spouse?
- Do people in your family tend to live a long time?
- What other retirement assets and income sources do you have available?
Many people also focus on receiving the highest total lifetime Social Security benefit.
While that’s certainly one way to look at the decision, there’s one important reality we can’t ignore: None of us knows exactly what the future holds.
Some people live well into their 90s. Others may pass away much sooner than expected.
That’s why I don’t believe the goal should simply be to maximize your Social Security benefit.
I believe the goal is to optimize your overall retirement income.
Sometimes that may mean delaying Social Security.
Other times, it may make sense to begin taking Social Security earlier. Doing so may reduce the amount you need to withdraw from your investment accounts and allow more of your long-term growth assets to remain invested and continue building for the future.
This creates an important opportunity-cost question:
Does it make sense to draw from growth-oriented investments—giving up some of their potential to keep growing—just so you can delay Social Security and receive a somewhat larger monthly benefit later?
In some situations, the answer may be no.
That doesn’t mean taking Social Security early is always the better choice. It simply means the potential benefit of waiting should be weighed against what you may be giving up by drawing more heavily from your other assets while you wait.
That’s why I don’t believe Social Security should ever be viewed as a standalone decision. It should be evaluated alongside your other income sources, retirement accounts, investment assets, and tax strategies to determine what creates the strongest overall retirement plan—not simply the largest Social Security check.
Put another way, the objective isn’t simply to maximize your Social Security benefit. It’s to help create the strongest overall retirement income plan possible.
So instead of asking,
“When should I take Social Security?”
you may want to ask:
“Which Social Security strategy best supports my overall retirement income plan and the retirement lifestyle I’m hoping to enjoy?”
I believe that’s a much better place to begin.
Continue Your Retirement Journey
If today’s article gave you a different perspective on retirement, we’d love to help you take the next step.
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OR
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