When should I take Social Security?
Last updated August 2026
Short answer
Break-even arithmetic dominates the discussion and misses the point. The benefit is longevity insurance, and insurance is not judged on whether you come out ahead on average.
What each claiming age does
Claiming at 62 reduces the monthly benefit permanently, by roughly 30% for someone whose full retirement age is 67.
Claiming at full retirement age gives the benefit as calculated from your earnings record.
Delaying past that adds delayed retirement credits until 70, after which no further increase accrues.
Why the break-even frame is incomplete
The usual break-even lands somewhere in the late seventies or early eighties, which makes delaying look like a bet on living long.
That framing treats the benefit as an investment when it functions as insurance.
The scenario worth protecting against is living to 95 with a depleted portfolio, and a larger inflation-adjusted benefit is the only asset that reliably covers it.
Married couples decide twice
When one spouse dies, the survivor generally keeps the larger of the two benefits.
So delaying the higher earner's claim raises income for as long as either spouse is alive.
The lower earner can often claim earlier at modest cost, which provides cash flow while the larger benefit continues growing.
Try it in Walnut
Walnut connects to your brokerage and reads what you hold, which is the other half of a decision about when to start guaranteed income.
Working while claiming
Before full retirement age, an earnings test withholds part of the benefit above an annual threshold.
Withheld amounts are not lost. The benefit is recalculated at full retirement age to credit them back.
After full retirement age the test disappears entirely, and continued earnings can still raise the benefit if they replace a low year in your top 35.
The tax interaction
Up to 85% of benefits can be included in taxable income depending on combined income, which counts other income plus half of the benefit.
Large traditional IRA withdrawals therefore make more of the benefit taxable, while Roth withdrawals do not.
Delaying the claim while drawing down traditional balances, and converting some to Roth, is a common way to reduce both future required distributions and future benefit taxation.
When claiming early makes sense
Poor health or a family history suggesting shorter longevity, particularly for a single person.
Needing the income to avoid selling investments in a down market, which is a real reason rather than a failure of planning.
Being the lower earner in a couple, where the survivor benefit is determined by the other spouse's record anyway.
Checking your own numbers
Your statement shows estimated benefits at 62, full retirement age and 70, calculated from your actual earnings record.
Those estimates assume you keep earning at your current rate until claiming, so they overstate the benefit for anyone stopping work early.
The record itself is worth checking for missing years, because an employer reporting error decades ago reduces a benefit calculated from your highest 35 years.
Sources
Claiming ages, the reduction and delayed retirement credits, the earnings test and survivor rules are published by the Social Security Administration, with benefit estimates available at my Social Security. Taxation of benefits is covered in IRS Publication 915. Walnut is informational and is not an investment adviser. This guide is educational and not personalized financial advice.
FAQ
How much does claiming early cost?
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The reduction is permanent and applies for as long as you receive benefits. Claiming at 62 with a full retirement age of 67 reduces the monthly amount by roughly 30%, and the reduction does not reverse at full retirement age.
What does delaying gain?
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Delayed retirement credits increase the benefit for each month after full retirement age until 70, and the increase is inflation-adjusted for life. There is no further gain after 70, so delaying beyond it is simply a loss.
What is the break-even age?
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Commonly somewhere in the late seventies to early eighties, depending on the ages compared. Living past it means delaying paid off. The framing is incomplete though, because the benefit also insures against outliving your money.
Does it matter more if I am married?
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Yes. The higher earner's benefit generally becomes the survivor benefit, so delaying that one raises income for whichever spouse lives longer. The lower earner often claims earlier without much cost to the household.
What if I keep working?
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Before full retirement age, the earnings test withholds some benefits above an annual threshold. Those withheld amounts are credited back later through a recalculation, so it is a deferral rather than a permanent loss.
Are benefits taxed?
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Up to 85% of benefits can be included in taxable income, depending on combined income. This interacts with withdrawals from traditional accounts, which is why the claiming decision and the withdrawal plan should be made together.
What if I am in poor health?
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Claiming earlier is more defensible, because the break-even calculation depends on longevity. For a married couple it is still worth checking the survivor consequence before the higher earner claims early.
Are the estimates on my statement accurate?
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They assume you keep earning at your current rate until you claim, so they overstate the benefit for anyone who stops work early. The earnings record itself is also worth checking for missing years, since the calculation uses your highest 35.