Claiming Social Security is one of the most important financial decisions you'll make in retirement. While it might seem like a simple choice—just pick an age and start collecting—there are a surprising number of variables that can impact how much you receive and how long those benefits will last. Your timing, your income, your health, and even your marital status can all play a role in shaping the best strategy for you.
Your Full Retirement Age
Before claiming Social Security, it's important to know when you’re eligible for full benefits (currently 66–67, depending on your birth year). Claiming earlier reduces your monthly benefit, while claiming later increases your benefit.
Here's a full article about whether you should delay taking Social Security benefits.
Your Current Income Needs
You'll need to understand the impact of claiming Social Security on your budget. If you need income now to cover essential expenses, claiming earlier might be necessary, even if it reduces your lifetime benefit.
Other Retirement Income
When deciding whether to claim Social Security benefits, consider your pensions, retirement accounts, part-time work, and rental income. These may give you flexibility to delay Social Security, which can raise your monthly payment.
Wondering how your retirement income compares? Here's the average retirement income in 2025.
Spousal Benefits
If you are married, you may be eligible for spousal benefits, which can be up to 50% of your spouse’s benefit—timing and strategy matter here.
Break-even Age
The break-even age is the age at which delaying benefits gives you more money overall. It’s often in your late 70s to early 80s.
Your Health and Longevity Expectations
If you expect a long life, delaying may yield higher total benefits. If health is poor, claiming earlier could make more sense.
Taxes
Social Security may be taxable depending on your income. Those filing jointly and earning over $32,000 can have up to 85% of their benefits taxed at the federal level. If you are filing single, you'll need to earn less than $25,000 to avoid income taxes on your benefits.
States may also tax your benefits. Here are the states that don't tax Social Security benefits.
Work Plans after Claiming Benefits
If you plan to claim your benefits early, know that working before your full retirement age can reduce your benefits temporarily due to the earnings test. Your earnings will be reduced by $1 for every $2 you earn.
Marital Status
If you were married for at least 10 years, you might qualify for spousal benefits based on your ex’s record, even if you are divorced.
Survivability Strategy
If one spouse earned more over their life, and therefore has higher benefits, then delaying the higher earner’s benefit can provide a larger survivor benefit for the spouse who lives longer.
Read more:
- If you want more help planning your retirement, here are the best retirement planning tools in 2025.
- The 4% rule is outdated; here's what's next.
- Still planning? Here are the 10 best Vanguard funds for a successful retirement.
