Choosing when to claim Social Security is one of the most important retirement decisions baby boomers face. According to the Social Security Administration, only 6% of Americans wait until age 70 to maximize benefits. This guide helps you make an informed decision.
Understanding the Basics
Your Full Retirement Age (FRA) depends on birth year (66-67 for boomers). Claiming before FRA reduces benefits permanently; delaying increases them by 8% annually until age 70.
Early Claiming (62-FRA)
Pros:
- Immediate income if needed
- Good for those with shorter life expectancy
Cons:
- Reduction of 25-30% from FRA amount
- Earnings limit if still working
Full Retirement Age Claiming
Pros:
- No reduction in benefits
- No earnings limit
Delayed Claiming (FRA-70)
Pros:
- 32% higher monthly benefit (for those with FRA 66)
- Higher survivor benefits
Cons:
- Requires other income sources while waiting
- Less advantageous if health is poor
Spousal Strategies
Consider “file and suspend” or “restricted application” strategies if married. A financial planner can help model different scenarios based on your life expectancy and other income sources.
