When Should You Claim Social Security

5 Factors That Really Matter

For most retirees, deciding when to claim Social Security is one of their most important income choices. After decades of paying in, you finally get to choose when to start collecting your benefits.

This personal choice is often simplified to: “Wait until 70 to get the biggest check.”

Well, that statement is technically true. Waiting until age 70 does indeed produce the largest monthly benefit. But the right time to claim Social Security is rarely ever just a math problem. It’s a decision that touches your health, your portfolio, your spouse, your emotions, and how you want to live in retirement.

Let’s walk through the five factors that really matter. You’ll quickly see why the best answer is usually more nuanced than a calculator suggests, and you’ll understand the key considerations that should be driving your decision.

1. Longevity vs. Mortality Risk

The Social Security system is designed to reward patience. Claiming at 62 can reduce your benefit by up to 30%. Waiting until 70 increases your benefit by roughly 8% per year beyond full retirement age, a total increase of about 76% compared to claiming early.

If you live into your 80s or 90s, that higher check can make a meaningful difference. The longer you live, the more waiting tends to pay off.

But not everyone feels confident they’ll have a long retirement. Health issues, family history, or simple uncertainty can make waiting feel emotionally risky. Many people worry about passing away before they ever collect.

They also assume that the option that will give you the largest lifetime income is just the best answer. The reality is that all break-even analyses are projections based on your lifespan. They don’t give you the right answer, but they do help frame the trade-offs more clearly.

This Kiplinger piece helps dispel common myths about Social Security entitlement and reinforces the need for thoughtful planning

If you expect to live into your late 80s or 90s, patience can be powerful. If you don’t, claiming earlier may help you enjoy the years you know you have.

2. The Portfolio Trade-Off: Sequence of Returns Risk

When you delay Social Security, you still need income. That usually means drawing more heavily on your retirement portfolio in the early years, which introduces what’s known as sequence-of-returns risk.

If markets are weak early in retirement and you’re making large withdrawals, your portfolio may shrink faster than expected. When markets recover later, the damage can be lasting because those early withdrawals permanently reduce what’s left to grow.

Claiming Social Security earlier can reduce that pressure. The guaranteed income acts as a stabilizer, helping cover basic expenses while giving your investments more room to recover or compound, but you will have lower cost-of-living adjustments throughout your lifetime.

Of course, there’s a flip side. If markets perform well early in retirement, waiting to claim may allow your portfolio to grow while you lock in a higher guaranteed benefit later.

The real question isn’t whether one approach is “better” than the other. It’s how much investment risk you’re comfortable carrying in the early years of retirement, when mistakes are hardest to undo.

3. Policy Risk: Will Social Security Still Be There?

It’s impossible to talk about Social Security without acknowledging the headlines. The trust fund is projected to face shortfalls in the early 2030s. If Congress does nothing, benefits could be reduced by roughly 20–25%.

History matters here. Social Security has faced funding challenges many times before. Each time, the system has been adjusted, through tax changes, benefit formula tweaks, or retirement age shifts, not eliminated.

Still, perception does matter. Some retirees feel more comfortable claiming early and “getting started,” rather than relying on lawmakers to act. Others are confident that reforms will happen and prefer to wait to maximize their benefit.

Neither perspective is necessarily wrong. This part of the decision comes down to how much uncertainty you’re willing to live with, and what helps you sleep at night.

4. Personal Preferences and Psychology

This may be the most overlooked factor, and often the most important one.

Most people have strong feelings about the right time to collect. 

Some people love the peace of mind that comes from turning on Social Security early. That steady, predictable income can be a signal that retirement has truly begun. Others see a larger future check as a reward for their patience and their discipline.

There’s also something psychologists call the “permission-to-spend” effect. When you know your essential income is covered, you’re more likely to enjoy retirement, to travel, pursue hobbies, or help family without second-guessing every dollar.

And for many people, there’s simple satisfaction in finally getting something back after decades of paying into the system.

In the end, numbers still matter. But being comfortable with uncertainty, feeling in control, and being at peace often matter far more.

5. Your Bigger Retirement Plan

Social Security should never be viewed in isolation. The age you claim affects nearly every other part of your retirement plan.

Claiming earlier or later changes how much you need to withdraw from IRAs or 401(k)s, which can affect tax brackets and Roth conversion opportunities. It can influence Medicare premiums through IRMAA surcharges. It may determine how much flexibility you have during your most active “go-go” years in retirement.

And for married couples, it plays a critical role in survivor planning.

When you take a step back and look at the whole picture, the goal shouldn’t generally be to squeeze every dollar out of Social Security. It should instead be to make sure your income strategy supports the life you want to live.

A Simple Case Study: Mary vs. John

Sometimes the numbers help clarify the trade-offs.

Mary retires at 62 and begins receiving Social Security benefits right away. Her reduced benefit is $1,800 per month. If she lives to age 82, she’ll collect about $432,000 in total benefits, not including cost-of-living adjustments.

John retires at the same time but waits until age 70 to claim. His benefit starts at $3,200 per month. If he also lives to 82, he’ll collect benefits for 12 years, totaling about $460,800.

If both live into their mid-80s or longer, John’s patience pays off. If either passes away earlier, Mary may collect more overall. And John’s higher benefit will continue for a surviving spouse if he passes first.

The lesson isn’t that one choice is right, and the other is wrong. It’s that Social Security decisions are about trade-offs, and those trade-offs look different for every household.

Spousal and Survivor Benefits: Think Like a Household

If you’re married, Social Security isn’t just an individual decision; it’s a household strategy.

Social Security won’t send two checks to a household where only one person lives, but it will send the larger of the two checks to the surviving spouse, providing a higher guaranteed income later in life. That means the higher-earning spouse’s decision can echo for decades. Delaying benefits can have a big impact on the lifetime value of the money you and your spouse receive. 

For couples where one spouse is expected to live much longer, this factor alone can justify the wait. In other cases, especially when earnings and health are similar, the advantage may be smaller, but reviewing your options prior to claiming is a smart move. 

Thinking of Social Security as a shared resource, rather than two separate checks, often leads to better long-term outcomes.

The Choice

There is no universal “right age” to claim Social Security.

For some people, claiming at 62 is the right choice. If you use your body in your day-to-day job, claiming Social Security early can make sense. You can reclaim those years without the wear and tear on your body.  For others, waiting until 70 provides a higher guaranteed income for life and allows them to still retire and defer collecting.

The right decision depends on your health, portfolio, confidence in the system, emotional preferences, marital situation, and how Social Security fits into your retirement plan.

When you weigh all these factors together, the answer is more often based on an emotional choice than the financial math. The key is to strike the right balance for your situation. Your key takeaway: consider each factor, not just the size of your check.

Because Social Security isn’t just about maximizing dollars. It’s about designing a retirement that gives you security, confidence, and freedom—focusing on your days, not just your dollars.

A Social Security Timing Analysis helps you see how your Social Security choices fit with your PG&E pension, 401(k), and tax strategy. It clarifies key trade-offs and gives you confidence in when and how to claim benefits.

Looking for a guide to help you through your financial situation? Reach out to us at Powering Your Retirement!