For most Americans, Social Security is more than a paycheck — it’s the foundation of their retirement. But the timing of when you file can make a massive difference in how much you collect. The Social Security Administration estimates more than 70 million people receive benefits each month, yet many unknowingly shortchange themselves by claiming too early.
A single decision could impact your income for the rest of your life — and once you file, there’s no easy do-over. Before you make that call, here are just a few things you absolutely must consider.
Timing
One of the most important factors to consider when filing for Social Security benefits is timing. For some people, it may make sense to claim benefits early at age 62; for others, waiting until age 70 can significantly increase their monthly payout.
Even the Social Security Administration won’t give a definitive answer about when the timing is right. As the SSA website explains, “The answer is that there’s not a single ‘best age’ for everyone and, ultimately, it’s your choice,” the website says.
Since there’s a lot to consider, a financial expert can help point you in the right direction for your specific circumstances.
Taxes
Your decision about when to claim Social Security benefits can also affect how much tax you pay. According to the Internal Revenue Service, your “combined income” includes your adjusted gross income, nontaxable interest and half of your Social Security benefits. If that total is more than $25,000 for single filers or $32,000 for married couples filing jointly, some of your benefits could be taxable.
And if your combined income rises above $34,000 (single) or $44,000 (married filing jointly), you could be subject to income tax on as much as 85% of your benefits.
Your life expectancy
It’s not the most cheerful topic, but being realistic about your life expectancy is important when deciding when to file for Social Security. If you’re in good health and longevity runs in your family, it may make sense to wait and increase your monthly payout. But if you’re facing health issues or have a shorter life expectancy, claiming benefits earlier could be the better choice.
Medicare
Before you file for Social Security, it’s smart to think about Medicare, too. Medicare starts at age 65, so if you claim Social Security earlier, you’ll need to remember to sign up for Medicare later to avoid late fees. If you’re already getting Social Security when you turn 65, you’ll be signed up for Medicare automatically, and the premium for Part B will come out of your monthly check. Planning both together helps you avoid gaps in coverage and unexpected costs.
Photo: opolja – stock.adobe.comHow long you plan to work
Your work plans play a big role in when to file for Social Security. If you claim benefits while still working and you’re under full retirement age, your payments could be reduced if your income exceeds certain limits. Once you reach full retirement age, those reductions end. Thinking about how long you want to stay in the work force can help you avoid benefit cuts and better plan your retirement income.
Your spouse
It’s important to remember that Social Security isn’t just about you — it can significantly affect the people you love. Your spouse, in particular, may feel the biggest impact since they’re often entitled to benefits based on your record.
If you claim benefits too early and pass away sooner than expected, your spouse could be left with a smaller monthly payment for the rest of their life. Waiting until age 70 to file can sometimes make sense, as it increases both your benefit and your spouse’s potential survivor benefit. However, there’s often more strategy involved when coordinating two different payouts. For example, the higher earner might delay filing to maximize future income, while the other claims earlier to bring in money sooner.
While Social Security benefits don’t pass directly to your children, your filing decision can still affect them indirectly. The more efficiently you plan your income in retirement, the more flexibility you’ll have with your savings — and the more you may be able to leave behind for your family.
Photo: Flamingo Images/Adobe StockProfessional guidance
The truth is, this list only scratches the surface of what you should consider before filing for Social Security benefits. According to Forbes, the official handbook contains more than 2,700 rules — which makes navigating it on your own a daunting task.
That’s why it is in your best interest to turn to an expert. The fiduciary advisors at B.O.S.S. Retirement Solutions can help take the confusion, overwhelm and guesswork out of your retirement planning. They’ll work with you to create a personalized claiming strategy that fits seamlessly with your overall financial goals.
Choosing when to file for Social Security benefits isn’t just about timing — it’s about strategy. The right decision can significantly impact how much you’ll receive and how long your money lasts. Because everyone’s situation is different, it’s important to get expert guidance tailored to your goals.
That’s why Tyson Thacker and Ryan Thacker at B.O.S.S. Retirement Solutions created a complimentary guide to help you navigate this critical decision. It walks you through key factors to consider before filing, so you can feel confident you’re making the right move for your future.
You have nothing to lose — and potentially tens of thousands of dollars to gain — by claiming your copy today. Download your free guide here and take the first step toward a more secure retirement.
When you’re ready to go further, click here to schedule your no-obligation B.O.S.S. Retirement Social Security Analysis and discover additional ways to keep more of your hard-earned money working for you.
Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are a five-time winner of Utah’s Best of State Award and have six offices located throughout the Wasatch Front.
This is for illustrative purposes only, results may vary. Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. BOSS submitted applications and paid application fees to be considered for the Utah Best of State for Retirement Planning awards. The award results were independently determined by the awarding organization’s criteria (https://www.bestofstate.org/about.html) and the information BOSS provided in the applications. BOSS received the Utah Best of State award in 2019, 2020, 2021, 2022, and 2023. Our firm is not affiliated with the U.S. government or any governmental agency. Marketing materials provided by Infinity Marketing Services.