Claiming Social Security can be a complicated endeavor when you're married. For one thing, your spouse might pressure you to file for benefits early so you can kick off retirement together, even if that's not what you feel most comfortable doing. Your spouse might also want you to delay your Social Security filing as long as possible so they'll be in line for a higher survivors benefit upon your passing.
When you're single, though, it can make the process of signing up for Social Security much easier. That's because you only have to consider your personal needs when making that choice -- not someone else's.
That said, there are two big factors you'll want to take into account when deciding when to claim Social Security -- your health and your savings level. Both could help you land on the ideal filing age.
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How's your health?
If you sign up for Social Security at full retirement age (FRA), you'll get the complete monthly benefit your earnings history renders you eligible for. FRA is 67 if you were born in 1960 or later.
You can also sign up for Social Security as early as age 62. But for each month you claim benefits before FRA, they'll be permanently reduced. On the flipside, delaying your claim will result in a boosted benefit, though once you turn 70, your benefit won't grow any more.
If your health is great, then it could pay to file for Social Security at FRA or beyond to get more money on a monthly basis -- and potentially in your lifetime. But if your health isn't so wonderful, then an early filing might be more appropriate for you. While it will reduce your monthly benefit, you might end up with a higher lifetime benefit by virtue of starting to get your money early.
How are your savings?
Ideally, you've been putting some money into an IRA or 401(k) plan for retirement savings purposes. Your balance leading up to retirement should help you determine when to claim Social Security.
If your balance is lower, you may become more reliant on your benefits to pay your bills. So in that case, an early filing probably isn't your best bet. You wouldn't want to resign yourself to a reduced benefit when you only expect to get a few hundred dollars a month in income out of your savings.
On the other hand, if you have a nice-sized nest egg, you may not have to worry about taking a hit on your Social Security benefits by claiming them early. And if doing so allows you to kick off the retirement you deserve at an earlier age, so be it.
Being single has its benefits -- both when you're working and when you're trying to make retirement decisions. Filing for Social Security may be easier when you don't have to take another person's needs into account. But it's still important that you do your best to land on the optimal filing age for yourself.
