Don't Even Consider Claiming Social Security Unless You Know the Answers to These Questions

As you near retirement, you must consider when to claim your first Social Security check. It's possible to start getting these retirement benefits as soon as you're 62, but there are good reasons to wait beyond that -- even up until age 70.

To make sure your decision helps set you up for a secure retirement, you shouldn't even consider filing for your first Social Security benefit until you have answered these three crucial questions.

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1. What's your full retirement age?

The first thing to know before claiming Social Security is your full retirement age (FRA) and why it matters.

The benefit you qualify for at FRA, known as your primary insurance amount, serves as a baseline. So for each month you claim benefits prior to FRA, your benefit will shrink a fraction of a percent from that baseline. On the other hand, if you wait until after FRA to claim, your benefit will grow a little each month from the baseline until it peaks at age 70. Knowing your FRA thus allows you to determine how your planned claiming age will affect your Social Security benefits.

Your birth year is the key factor that determines your FRA:

Data source: Social Security Administration.

2. How much income will Social Security provide to you?

The next question to answer is exactly how much money you'll actually get from Social Security. This is easy to figure out. Register with mySocialSecurity.gov, and look at the benefit amounts you may qualify for.

Many people will find their estimated benefit to be lower than they expect, but the reality is Social Security alone cannot support you through retirement. Your Social Security benefits are only intended to replace approximately 40% of pre-retirement income. That's just not enough to come close to maintaining your standard of living.

Once you know how much money will come from Social Security, consider how your different sources of income and savings add up for a complete financial picture of your retirement. Then, compare that amount to your expected living expenses in order to formulate a plan going forward.

3. How will your spouse be affected by your decision to claim benefits?

Finally, if you're married, it's important to consider how your spouse will be impacted by your benefits claim.

For example, if your spouse wants to claim Social Security spousal benefits, they can't do that until you've begun getting your own retirement checks. If your partner is waiting, an early claim can sometimes make sense.

On the flip side, if you're the higher earner and you claim benefits early, this results in not only the permanent reduction to your benefits but also the survivor benefits your spouse would get if you predecease them. If you're worried about how your spouse will fare financially when you're gone, a delayed claim can help.

It's a good idea to work together with your partner, consider all the options, and think about the long-term implications of your decision.

By taking the time to get answers to these three questions, you can be confident in your choices when it comes to this important income source.