One nice thing about Social Security is that you're not forced to file for benefits at a single specific point in time. Rather, you get a range of ages to sign up.
Once you turn 62, you can file for Social Security at any point. But you should know a few things.
First, you won't be entitled to your completely monthly benefit based on your earnings history until you reach full retirement age (FRA). And for each month you claim benefits before FRA, they get reduced on a permanent basis.
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You should also know that delaying your Social Security claim past FRA will result in a boosted benefit for life. However, that incentive runs out once you turn 70, so at that point, there's no sense in delaying your claim any further.
If you're single and thinking of filing for Social Security, you really only have to consider your own needs in the course of deciding when to claim benefits. But if you're married, you and your spouse should sit down together to land on the right filing age. That's because the age you start benefits could impact your spouse after you're gone.
Keep survivors benefits in mind
Married people are entitled to survivors benefits from Social Security once their spouses pass away. And those benefits could really be a lifeline in the absence of (or deficiency in) retirement savings.
It's especially important for the higher-earning member of a couple to discuss claiming Social Security with their spouse before signing up to get benefits. So if that's you in your relationship, make sure your spouse is on board with your decision.
Let's say you're entitled to a monthly Social Security benefit of $2,400 at an FRA of 67. If you pass away before your spouse, they'll be entitled to 100% of your benefit.
Now, let's also assume that your spouse earned a lot less than you and is therefore only entitled to $1,500 a month in Social Security based on their own wage history. In that case, upon your passing, your spouse will be bumped up to a survivors benefit, so they get more money. But the amount they get will hinge on your filing age.
If you opt to claim Social Security at 62, you'll reduce your monthly benefit by 30%, bringing your total down to $1,680. That's still more than what your spouse is collecting in this example, but it may not be a sum they're happy with.
On the other hand, delaying your filing until age 70 would mean collecting $2,976 a month from Social Security. And it would leave your surviving spouse with that much more money on a monthly basis.
An important conversation to have
You may have your reasons for wanting to claim Social Security at a specific age. But before you do, talk to your spouse about how that might impact them and see what they say. If you don't agree on when you should sign up for benefits, you might at least be able to come to a compromise that works reasonably well for both of you.
