Ask Rusty: Should I Take Social Security Now, or at age 70?

Dear Rusty: I was born in April 1958, and my plan has been to take my Social Security (SS) at age 70. However, my sister-in-law says that it is smarter to take it now while I am still working. I will be 70 in 2.5 years. Her husband collects his SS and has kept working. She believes their strategy will net more money than mine due to the fact he has continued to pay into the system, and she believes it has super boosted his monthly benefit. What say you? BTW, Lord willing and the creek don’t rise, I plan on living at least till age 87.? Signed: Questioning My Plan Dear Questioning: You have already reached your SS full retirement age (FRA), so you can earn as much as possible without your SS benefit being negatively affected by Social Security’s Annual Earnings Test. In fact, if your current earnings are among the highest over your lifetime, your SS benefit amount will continue to increase because of your higher current earnings. You are now also earning Delayed Retirement Credits (DRCs), which will improve your monthly amount by 0.67 percent for each month (8 percent for each full year) you delay. That means that if you wait and claim at age 70, you will receive about 127 percent of what you would have gotten had you claimed at your FRA of 66 years and 8 months (plus you’ll also receive all cost-of-living adjustment, or COLA, increases that occur between now and then). So your life expectancy is key. It usually takes about 12 years to breakeven moneywise by claiming at age 70 versus at FRA. In other words, if you claim at 70 instead of FRA, you will have received the same amount of SS money after you are age 82. Thus, if your life expectancy is greater than 82, you’ll receive more in cumulative lifetime benefits by waiting until 70 to claim. Of course, no one really knows how long they will live, so it is a judgement you need to make. “Average” life expectancy for a man your current age is about age 84, but if you’d like to get a more personalized longevity estimate you can use this tool we use here at the AMAC Foundation: https://socialsecurityreport.org/tools/life-expectancy-calculator/ Another thing to keep in mind is whether your wife will receive a widow’s benefit if you die first. A widow will get the higher of either her own SS retirement benefit, or the husband’s benefit amount when he died. So, if you claim at age 70, your surviving spouse will benefit (if her own SS is smaller) because you waited until 70 for your higher SS amount. Just something else to keep in mind. Yet another is whether your wife will be entitled to a higher benefit as your spouse while you are both living. (FYI, a spouse will get a “spousal boost” if her own SS retirement benefit at FRA is less than 50 percent of her spouse’s FRA entitlement). If so, your wife cannot claim her spousal benefit until you take your own SS retirement benefit. If your wife will be entitled to more as your spouse while you are both living, then delaying until age 70 means your wife cannot collect her higher spousal amount until you claim. Depending on your financial needs as a couple, that may affect your decision as well. When to claim is always a judgement call, which should consider your life expectancy, your financial needs, and your marital status. If you don’t need the SS money now (while you are working) and believe you will, indeed, live “at least till 87,” then waiting would likely be your best long-term decision. If you have doubts about your life expectancy, and/or if your wife will substantially benefit from a “spousal boost” if you claim earlier, then claiming now would also be a wise choice. Finally, it’s also important to understand that your SS benefits may be taxable by the IRS and, if you are still working, your IRS tax rate will likely be higher now than it would be after you retire from working. (Note: The so-called “One Big Beautiful Bill Act” provides only temporary tax relief (thru 2028) on SS benefits — the IRS will still tax SS benefits, but also allow a separate tax deduction to offset those SS taxes you pay).

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Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4-million-member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org. Author’s note: This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained, and accredited by the National Social Security Association (NSSA). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration (SSA) or any other governmental entity.