After nearly 30 years of doing retirement planning, I can tell you that the Social Security claiming
decision is one of the most consequential choices my clients face — and one of the most
misunderstood.
Most people I talk to have already decided they’re taking it early. At 62, the first moment they’re eligible.
The logic is simple: get the money sooner, enjoy it while you can, and stop worrying about what
happens if you die young. I understand it. I just disagree with it — for most people who walk through my
door.
Here’s the math I walk through with every client.
The Three Ages That Matter: 62, 67, and 70
For anyone born in 1960 or later, full retirement age (FRA) for Social Security is 67. That’s the
benchmark.
If you claim at 62, your benefit is permanently reduced by 30%. You’ll receive 70 cents of every dollar
you would have gotten at 67 — for the rest of your life.
If you wait until 70, you earn delayed retirement credits of 8% per year past your FRA. Over three
years, that’s a 24% increase on top of your full benefit. So compared to claiming at 62, someone who
waits until 70 could receive a benefit that’s roughly 77% larger on a monthly basis.
That’s not a rounding error. On a $2,000 FRA benefit, the difference between 62 and 70 is
approximately $1,400 per month versus $2,480 per month — every month, for life.
The Break-Even Calculation
The common counterargument to delaying is: ‘I’d rather have the money earlier.’ That’s a reasonable
instinct. But it ignores the math.
If you claim early, you collect more checks — but smaller ones. If you delay, you collect fewer checks —
but larger ones. At some point, total lifetime payments cross over. That’s the break-even age.
For most scenarios, that break-even point falls somewhere in your early-to-mid 80s. If you live past it,
you come out ahead by waiting. If you don’t, you would have been better off claiming early.
Here’s the critical question: what does your health and family history suggest about longevity? A client
who smoked for 40 years and has serious health problems might legitimately be better off claiming at 62. A client in excellent health whose parents lived into their 90s may be leaving money on t he table by
claiming early.
It’s Not Just About When You Die
There are two other factors that complicate the simple break-even math, and I think about both of them
carefully with every client.
Survivor benefits. For married couples, the higher earner’s benefit becomes the survivor benefit when
one spouse dies. That means the claiming decision for the higher earner isn’t just about their own
retirement — it’s about income security for whoever lives longer. Delaying the higher benefit can
provide significantly more lifetime income for a surviving spouse, especially widows and widowers who
often face decades of retirement alone.
Tax and income coordination. Social Security benefits are partially taxable depending on your total
income. If you claim early while still earning income, more of your benefit may be taxed — and your
benefit can actually be reduced if you’re under FRA and earning more than $24,480 per year in 2026.
Layering Social Security on top of RMDs and other income sources is a tax planning problem as much
as it is a benefit strategy problem.
My Take After Nearly 30 Years
The clients who benefit most from delaying Social Security are the ones who’ve done the planning work
to bridge the gap. They have a clear withdrawal strategy from their IRAs and investments to cover
income from 62 to 70 without touching Social Security. They know their tax bracket. They’ve modeled
survivor scenarios. They’re not just guessing.
The clients who claim at 62 because they’re scared the money won’t be there, or because they don’t
trust the math, almost always look back and wish they’d waited.
I’m not saying 70 is right for everyone. I’m saying most people haven’t done the calculation honestly.
They’ve made an emotional decision and called it a financial one.
If you’re within 10 years of retirement and haven’t run the numbers on your specific Social Security
situation — including spousal and survivor benefits — that’s where we should start.
Want a personalized RMD, IRMAA, or Social Security plan that fits your exact numbers? Schedule a retirement
tax review with me at Creative Financial Group.
These blogs are intended for educational purposes and represent general information about retirement planning
strategies. Individual circumstances vary. Consult with a qualified financial planner and tax professional before
making decisions regarding your retirement income strategy.
Kurt Supe is a CPA and co-founder of Creative Financial Group, a retirement planning firm based in Indiana. He
has spent nearly 30 years helping clients navigate the tax side of retirement — from Roth conversions and RMDs
to Medicare planning and Social Security strategy.
Deciding when to claim involves a ‘breakeven’ analysis. While waiting increases the monthly check, it also means
forgoing years of cumulative benefits. You should consider your health status, life expectancy, and other income
sources before making a decision.
Social Security rules and benefit calculations are subject to change based on federal legislation. Figures provided
are based on current SSA laws for individuals born in 1960 or later.