Social Security recipients get a choice when it comes to signing up for benefits. You're allowed to file as soon as you turn 62. But you're not entitled to your complete monthly benefit based on your personal earnings history until full retirement age (FRA) arrives. That age is 67 if you were born in or after 1960.
You can also delay your Social Security claim for a boosted monthly benefit. For each year you wait to file, up until age 70, your monthly benefit gets to grow 8%. And to be clear, that boost is a permanent one.
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It's easy to make the argument for a delayed Social Security filing. Having a higher monthly benefit for life could make your retirement less financially stressful. And it also gives you more leeway to spend money on the things you enjoy.
But in some situations, delaying Social Security really isn't the wisest move. If these scenarios apply to you, you may want to file earlier.
1. Your health is poor
A delayed Social Security claim may result in more monthly income for you, but it won't necessarily result in a higher amount of lifetime income. In fact, if your health isn't in good shape, and you're therefore not so likely to live a long life, you may want to err on the side of claiming Social Security early. Doing so could mean getting more money from the program all in.
Let's say you're looking at an $1,800 monthly Social Security benefit at an FRA of 67. Waiting until age 70 to file will boost that benefit to $2,232 a month. But your breakeven age in that scenario is 82 1/2. If you don't live at least that long, you'll lose out financially by virtue of having waited until age 70.
2. Your job is harmful to your health
For many people, the option to delay Social Security hinges on continuing to work. If you enjoy what you do and it's not overly stressful, then you might as well keep at it if that allows you to lock in a higher Social Security benefit for life. But if you hate your job and it's harming your health by causing you stress or physical issues, then it's not worth putting yourself through that torture for a larger benefit.
Of course, this assumes you have some money in savings set aside for retirement. If not, then it's a bit of a different conversation -- though even then, it's generally not worth harming your health to get your hands on more money. But if you have saved decently for retirement, then it especially pays to break free of a bad job sooner -- even if you need to claim Social Security at a younger age to allow for that.
3. You want to retire at the same time as a much older spouse
If there's a big age gap between you and your spouse, your spouse may end up leaving the workforce well ahead of you. And for you to be able to retire at roughly the same time, you might need some income from Social Security. So that's a situation where a delayed claim may not make sense.
If you hold off on filing for Social Security, you might get more out of your monthly benefit. But you might also miss out on the chance to be retired at the same time as your spouse when he or she in good health. And remember, those are years you can't get back.
There are plenty of good reasons to hold off on claiming Social Security. But know that a delayed filing isn't always your best bet. And if these factors apply to you, you may find that signing up earlier is a better move.
