Dear Rusty: I am a married woman, at my full retirement age (FRA), and the primary earner in my marriage. How do I know if I should take my Social Security (SS) now or wait until age 70? I will lose quite a bit if I take it now. How will it affect my taxes if I take it now while still working a full-time job?

Signed: Undecided

Dear Undecided: As you apparently already know, waiting until you are 70 to claim Social Security will result in you getting your maximum possible monthly SS retirement benefit. After your FRA, you get about 8 percent more each year you delay claiming up to age 70. But when deciding exactly when to claim, you should consider both your financial needs and, importantly, your life expectancy. If you don’t urgently need the money now and your life expectancy is at least “average,” then waiting until age 70 to claim is usually the right choice. But if you urgently need the money, or your life expectancy is less than average (mid-80s for a woman your current age), then claiming before age 70 is usually prudent.

Regarding taxation, Social Security benefits may be taxable if your combined income from all sources exceeds the threshold for your IRS filing status. If you file taxes as “married/jointly” and your combined income (including your work income) exceeds $32,000, then half of the SS benefits you received during the tax year becomes part of your taxable income. But if your combined income is more than $44,000, then up to 85 percent of your SS benefits becomes taxable income (the thresholds are lower for those who file as a single). So, your full-time work income will likely affect how much of your Social Security benefits are subject to income tax by the IRS.

In the end, only you can decide when you should claim Social Security. Taxation of benefits may be a factor to consider since you are still working full time (thus more of your SS benefits will be taxable). But waiting longer to claim results in a higher benefit for the rest of your life (your SS retirement benefit will be 0.667 percent more for each month you delay, up to age 70). If the “rest of your life” is a long time and you don’t urgently need the money, waiting is often the right choice. If not, claiming earlier may be wiser.

If you want to get a more personalized estimate of your life expectancy, I suggest you use the tool we use here at the AMAC Foundation: www.socialsecurityreport.org/tools/life-expectancy-calculator/.     

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 or any other governmental entity.