Bedrock Investment Advisors understands your benefits and can help you with your goals.

4 Things You Should Consider Before Deciding When to Start Your Social Security Payments

todd carmack
November 15, 2025

Key Takeaways

The age at which you start claiming Social Security significantly impacts your monthly benefit amount and overall retirement income.
Factors such as life expectancy, financial needs, and employment status should be carefully evaluated before making a decision.

Timing Matters: When Should You Start Claiming Social Security?

Deciding when to start your Social Security payments is one of the most important financial choices you’ll make as you approach retirement. Your decision directly affects your monthly benefits and overall financial security throughout retirement. While you can start claiming as early as age 62, waiting until your full retirement age (FRA) or even delaying until age 70 could offer significant advantages. But there’s no one-size-fits-all answer—your unique circumstances should guide your choice.

1. Understanding the Full Retirement Age (FRA) and Its Impact

Your full retirement age (FRA) is the age at which you qualify for your full Social Security benefit amount. In 2025, FRA is 67 for those born in 1960 or later. If you were born before 1960, your FRA may be slightly lower.

If you claim benefits before FRA, your monthly payment is permanently reduced. For example, if you start at 62, your benefits may be reduced by as much as 30%. On the other hand, delaying beyond FRA can increase your benefits. Each year you wait beyond FRA, up until age 70, your benefits grow by about 8% per year due to delayed retirement credits.

When Claiming Early Might Make Sense

If you need the income immediately due to financial constraints.
If you have a shorter life expectancy due to health concerns.
If you’re no longer working and need funds to cover essential expenses.

When Delaying Might Be the Better Choice

If you have sufficient income from pensions, savings, or other sources to hold off on claiming.
If you expect to live a long retirement, maximizing lifetime benefits can provide long-term security.
If your spouse is dependent on your Social Security and would benefit from a higher survivor benefit.

2. How Longevity and Life Expectancy Factor into Your Decision

Social Security benefits are structured to provide steady income throughout your retirement. The longer you live, the more sense it makes to delay claiming in order to receive a higher benefit.

Average Life Expectancy and Break-Even Points

The average life expectancy for a 65-year-old in 2025 is around 84 for men and 87 for women. If you expect to live into your 80s or 90s, waiting longer to claim can be beneficial.

A common way to evaluate the timing of your claim is by calculating your break-even point—the age at which the total benefits you receive from delaying outweigh the total you would have received by claiming early. Typically, the break-even point is around age 78-80. If you live beyond this, delaying benefits may lead to higher lifetime earnings.

3. How Your Current and Future Income Affects Your Benefits

Your Social Security benefits can be reduced if you claim before FRA and continue working. In 2025, if you’re under FRA and earning above $23,480, Social Security will withhold $1 for every $2 you earn over this limit. The year you reach FRA, the earnings limit increases to $62,160, with a smaller withholding of $1 for every $3 over the limit. Once you hit FRA, there’s no penalty for working while receiving benefits.

However, it’s essential to consider how this earnings limit interacts with other forms of retirement income. If you’re working part-time or in a second career while claiming benefits, you may find that your reduced Social Security payments impact your financial strategy. Additionally, the withheld benefits are not lost forever—they are recalculated at FRA, potentially increasing future payments. This means that even if your benefits are temporarily reduced, you may recover some of the lost amounts later.

For those earning significantly above the threshold, it may be beneficial to delay claiming benefits until FRA to avoid unnecessary reductions. If you expect your income to fluctuate, planning around lower-earning years can help you maximize Social Security benefits while still receiving some additional income from work. Consulting with a financial advisor can provide deeper insights into optimizing your earnings and benefits for a stable retirement.

Considering Other Retirement Income Sources

Pension Benefits: Some public sector employees have pensions that may impact their Social Security benefits through the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO).
Required Minimum Distributions (RMDs): At age 73, you must begin taking RMDs from traditional IRAs and 401(k)s, which can impact your tax bracket and overall income planning.

If you have a substantial retirement savings cushion, delaying Social Security can help you optimize benefits and minimize tax burdens later.

4. The Role of Spousal and Survivor Benefits

For married couples, spousal and survivor benefits play a crucial role in Social Security planning. Your decision affects not only your own financial security but also your spouse’s future benefits.

Spousal Benefits

If you’re married, your spouse may claim a spousal benefit worth up to 50% of your FRA benefit if they wait until their own FRA. If you claim early, it reduces not only your benefit but also what your spouse can receive.

Survivor Benefits

If you pass away, your surviving spouse may be entitled to 100% of your benefit if they wait until their FRA to claim. This means that delaying your own Social Security payments can result in a much larger survivor benefit for your spouse.

Making an Informed Decision About When to Claim

Before making your final decision on Social Security, take the following steps:

1. Assess Your Financial Needs

Review your monthly expenses, savings, pensions, and potential healthcare costs to determine if you can afford to delay Social Security.

2. Estimate Your Longevity

Consider your health, family history, and lifestyle factors to gauge how long you might live in retirement.

3. Factor in Employment Plans

If you plan to continue working, be aware of how earnings limits may impact your benefits.

4. Evaluate Spousal Benefits

If you’re married, coordinate your claiming strategy with your spouse to maximize household Social Security income.

Making the Most of Your Retirement Security

Deciding when to start your Social Security benefits is not just about when you can take them—it’s about when you should. While claiming early might be tempting, delaying can provide greater financial security, especially if you expect to live well into your 80s or 90s. On the other hand, if you need immediate income, claiming sooner may be the right move.

If you need personalized advice on Social Security timing and retirement planning, get in touch with a licensed agent listed on this website. A professional can help you explore your options and make the best decision for your long-term financial health.

Todd Carmack

Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.

Disclosure: Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.