Ask Rusty: Consider the “Wearing Out” Factor in Deciding When to Claim SS

Dear Rusty: I enjoyed your recent articles on claiming Social Security (SS) benefits. I feel, however, any decision making should also include what I call the “wearing out” factor. Yes, financial need, health, and longevity are definite criteria for a decision. The inevitable problem (I just turned 83) is the speed at which many of us descend down the back side of that hill after we hit around age 65. Yes, one might live to age 85-90 but as you age after 65, many physical limitations begin to appear. Only then does one realize their earlier retirement decision (waiting to max out SS) might not have been honestly evaluated to the extent needed. I speak from experience: after having reached 60 in excellent health, I took early retirement from work, then Social Security at 62, and glad I did so. I figure the degree of slope on the backside of that “hill” will increase with age (it did quickly for me). So, one should start enjoying a retirement life as soon as financially possible. Signed: Glad I claimed at 62 Dear Glad I claimed at 62: Thank you very much for your excellent perspective on the “wearing out” factor. And please know that I wholeheartedly concur with your opinion that waiting for a higher Social Security benefit is not always the most prudent choice. For perspective, however, we have found that far too many people claim Social Security as soon as they are eligible at age 62 simply because “it is there,” without fully analyzing whether that is the best option considering their personal circumstances. You are correct — enjoying your retirement life while you are still physically able is a valid consideration. And that is why we always suggest that evaluating both your financial needs as well as your health and life expectancy is important. Fulfilling one’s “bucket list” is, indeed, an important consideration and if claiming Social Security at age 62 (after evaluating all factors) enables one to do that, then that is exactly the right choice. It obviously was for you. Age does, indeed, tend to slow us down, so if taking the SS money early means being able to enjoy life while you still can, then that is a good decision. But having more money as you age can also make your “golden years” a lot more comfortable. As we have recently witnessed, inflation has an insidious way of reducing our financial comfort in retirement. Despite having a retirement pension from your primary working career, imagine how another 25 percent in your monthly Social Security payment — had you claimed at full retirement age instead of age 62 — would help make your senior years more comfortable. The fact is that no one can predict how long they will live nor whether they will do so in good health. All we can do is evaluate all our options under varying circumstances and make our claiming decision based on that analysis. And that is precisely what we advocate for at the AMAC Foundation’s Social Security Service. In no way did I intend to say that claiming at 62 was never the right choice; only that everyone should look at their complete personal circumstances when deciding when to do so.                

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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.