14 Aug When Is the Best Age to Start Claiming Social Security?
One of the most common questions we hear at KPC Financial Solutions is, “When should I start taking Social Security?” The answer is not the same for everyone.
You can generally begin Social Security retirement benefits as early as age 62, but claiming before your full retirement age results in a reduced monthly benefit. Your full retirement age depends on your birth year and is 67 for people born in 1960 or later.
At KPC, we believe the decision should be based on more than simply reaching a certain age. Social Security should be considered as part of your overall retirement income plan.
Should You Claim at 62?
For some retirees, starting Social Security early may make sense. You may need the income, plan to retire early, or have personal circumstances that make receiving benefits sooner the right choice.
However, starting before your full retirement age permanently reduces your monthly retirement benefit. At KPC, we can help you look at whether you actually need Social Security income immediately or whether other retirement assets could potentially be used first.
What About Waiting Until Full Retirement Age?
At your full retirement age, you are eligible for your full Social Security retirement benefit based on your earnings record. This can be an important time to evaluate your income needs, retirement accounts, taxes, and other sources of income.
KPC Financial Solutions can help you see how Social Security fits alongside your IRA, 401(k), pensions, investments, and other retirement income.
Is Waiting Until 70 Better?
Delaying Social Security beyond full retirement age increases your monthly benefit until age 70. After age 70, there is no additional increase for delaying your retirement benefit.
While a larger monthly benefit can be attractive, waiting until 70 is not automatically the right decision for everyone. Your health, longevity expectations, marital status, cash flow needs, retirement date, and other assets can all play a role.
How KPC Financial Solutions Can Help
At KPC, we can help you:
- Compare claiming Social Security at different ages
- Review how each option may affect your retirement income
- Consider Social Security alongside your investments and retirement accounts
- Evaluate spousal and household considerations
- Look at your overall income and tax planning strategy
- Create a retirement income plan designed around your individual goals
Social Security is an important retirement decision, and you do not have to make it in isolation.
At KPC Financial Solutions, our goal is to give you the Knowledge, Planning, and Confidence to understand your options and make an informed decision.
Not sure when to start claiming Social Security?
Schedule a complimentary consultation with KPC Financial Solutions today.