You've been looking forward to receiving Social Security checks for decades, and you may have even marked your start date on your calendar. But now that it's almost here, you're not sure you're ready.
It's a big decision. Your claiming age affects the size of the benefit you'll receive for the rest of your life, and once you've started receiving checks, it's difficult to change your mind. However, if you've made the three moves listed below, you probably won't have to worry about regret.
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1. You understand how your claiming age will affect your checks
The main reason you want to time your Social Security claim carefully is because your age at sign up dictates the size of your checks. Once this is locked in, it usually doesn't change apart from annual cost-of-living adjustments (COLAs).
To get the full benefit you've earned based on your work history, you must claim at your full retirement age (FRA). This is 67 for most workers today, though some older adults have slightly younger FRAs.
Claiming early is possible, but you'll lose 5/9 of 1% per month for up to 36 months of early claiming and then 5/12 of 1% per month thereafter. So those with FRAs of 67 will get 30% less if they sign up as soon as they become eligible at 62.
This isn't always the wrong move. If you have a short life expectancy or you can't afford to pay for your living expenses any other way, claiming benefits early makes sense. But if neither of these issues apply to you, you'll likely get a larger lifetime benefit by delaying your Social Security claim -- and you don't have to stop at 67.
You can continue to delay benefits until you qualify for your maximum benefit at 70. Your checks will grow by 2/3 of 1% per month during that time.
It's best to compare how much you could receive at a few claiming ages before settling on the one you like best. The easiest way to do this is to create a my Social Security account. There's a benefit estimator here that can show you how much you're likely to get at every possible claiming age based on your work history to date and future projections that you can adjust. Make sure you're comfortable with the amount you'd get before you actually apply.
2. You've talked it over with your spouse, if you're married
Married couples can maximize their household benefits if they come up with a claiming strategy together. The approach will likely depend on whether each person is claiming their own retirement benefit or if one will get a spousal benefit. Your partner's spousal benefit is worth up to one-half of the retirement benefit you qualify for at your FRA.
The Social Security Administration gives you the larger of your retirement or spousal benefit, but you can only claim a spousal benefit if your partner is already receiving their retirement benefit. This could influence when you hope to apply.
When both partners have earned similar amounts throughout their career, they'll likely both wind up with their own retirement benefits. So it makes sense for them to choose the claiming age they believe will maximize their lifetime benefit. On the other hand, if one person has significantly outearned the other, the lower earner may wish to start early. Their benefits could help the higher earner delay Social Security for a while so they get more when they eventually sign up.
Whatever you decide, make sure you and your spouse are on the same page. Know when each of you plan to apply and how this will affect your household income. If one of you wants to change the plan, be sure to talk it over with the other first.
3. You've gathered all the necessary documents
You don't want your Social Security application slowed down by missing documents. So start gathering what you need right now. This includes:
- Your Social Security number
- Your original birth certificate or proof of U.S. citizenship or lawful alien status
- A copy of your U.S. military service papers if you served before 1968
- A copy of your W-2 or self-employment tax return from last year
If you don't have all the documents you need, see if you can get them. For example, you can reach out to your employer if you need a copy of your W-2, and the state where you were born should have a copy of your birth certificate that you can order. The Social Security Administration may also be able to help you track down missing documents.
If you have any questions about what you need or about how claiming soon will affect your checks, reach out to your local Social Security office for help. Or you could try contacting the Social Security Administration by phone.
