When it makes sense to take Social Security benefits

Social Security can be a significant part of your retirement income. In fact, an individual with annual earnings of $150,000 turning 65 in 2026 will receive an estimated $2,780 in Social Security benefits per month, according to the Social Security Administration’s benefits quick calculator.

Timing is key to make the most of Social Security. If you begin collecting the minute you are allowed to – which is currently age 62 – your benefit may be lower than if you wait for a few more years. On the flip side, if collecting sooner allows you to avoid tapping into your investments or helps you cover immediate needs, claiming early may be a good idea for you.

To get the timing right, here are a few things to consider:

How long you may live in retirement

It’s natural to underestimate how long you’ll live after retiring and to overestimate how long you’ll be able to work in order to save for retirement. For the average 65-year-old couple, there is a 50/50 chance one spouse will live to age 90 or beyond.

Your health and life expectancy – as well as your spouse's if you're married - are important when thinking about foregoing larger benefits later in exchange for smaller benefits sooner.

Other sources of income and investment assets

Social Security replaces only about 39% of pre-retirement income for an average worker. That means other sources of income, including pensions, savings and investments, play an important role.

If you are still working or have income from other sources, it may be easier for you to delay claiming and rely on that income instead.

If you have an investment portfolio, consider whether the benefits of getting a larger check later on in life outweigh the costs – including selling existing investments, for instance – of bridging the gap until you claim Social Security. 

Your spouse’s benefit

Coordinating your benefits with your spouse, including claiming a spousal benefit, may help maximize your family's income.

Your best move here will depend on your unique situation, including the age gap between you and your partner, and whether either one of you will keep working after retirement. For example, if you're the primary breadwinner and significantly older than your spouse, taking your benefits early can result in a lower survivor benefit for your partner, who may rely on those benefits for many years beyond your lifetime.

Health of the Social Security system

You may have heard a widely reported statistic that the Social Security pool will begin running into problems by 2033. But that doesn't mean you'll be shut out.

According to the 2025 Social Security Board of Trustees report, current payroll taxes are projected to fund about 77% of Social Security benefits through 2099. Therefore, even younger workers are likely to receive some of the benefits.

A number of proposals, including increasing payroll taxes for higher incomes and increasing the overall retirement age, have been discussed to help make Social Security fully funded for the long term. But current retirees and those nearing retirement shouldn't be too concerned since proposed changes likely will be phased in over time. Younger workers and higher earners are likely to be the most affected by changes to the system, so it's important to begin planning as early as possible.

View Disclosures