Before You Claim Social Security: What to Consider

Before you apply for Social Security, consider how the claiming date fits your spending, other income and investment withdrawals. The goal is to choose a benefit start date that works for your household, not simply pursue the largest monthly check.

Start with the estimates based on your own earnings record, then review the work, tax and household considerations below.

What are Social Security Benefits?

Officially known as the Old-Age, Survivors, and Disability Insurance (OASDI) program, Social Security benefits are a monthly payout provided to qualified retirees, disabled workers, and the dependents and survivors of these groups. The program aims to partially replace income lost as a result of reaching retirement age, the death of a spouse, or a disability. While you can start claiming Social Security checks as early as 62 years old, there are some potential advantages to delaying these benefits and planning out your claims more carefully.

How are Social Security Benefits Calculated?

Social Security benefits differ from person to person. Your benefit calculation uses your highest 35 years of indexed earnings, and claiming before full retirement age reduces the monthly benefit. Stopping work and starting benefits are separate decisions.2

Benefits also receive cost-of-living adjustments; the adjustment for 2026 is 2.8%.1

What to Consider Before You Claim

Before applying, consider how the benefit fits your spending, other income and portfolio withdrawals. A higher monthly check is only one part of the decision; cash needs, health, longevity and household circumstances matter too.

Full Retirement Age

At 62, it can be tempting to start Social Security as soon as benefits are available, but you could miss out on the full amount you're entitled to. To receive 100% of your benefit, consider waiting until full retirement age to apply:

• Born in 1960 or later: full retirement age is 67.
• Born 1955 through 1959: it falls between 66 and 67.

Earning Limits

Some people keep working after they start collecting Social Security. That's an option, but if you're between 62 and your full retirement age, there's a limit on how much you can earn:

• Before the year you reach full retirement age: the 2026 earnings limit is $24,480.
• In the year you reach full retirement age: the 2026 limit is $65,160, counting only earnings before the month you reach that age.
• Above the limit: a portion of your benefits may be withheld.

At full retirement age, SSA recalculates your monthly benefit to account for months when benefits were withheld because of work. This is not the same as an automatic lump-sum refund. The SSA earnings-test explanation also describes which earnings count.

Tax Implications

Social Security rules let you keep working and earn other income while you collect benefits. That can affect your taxes:

• Up to 50% or 85% of your benefits can be included in taxable income, depending on your other income. Those percentages are not tax rates.
• The income thresholds that trigger this tax are not indexed for inflation.
• The 2025 tax law did not repeal the tax on benefits. It added a temporary $6,000 deduction for taxpayers 65 and older (tax years 2025 through 2028). The deduction phases out above $75,000 of modified adjusted gross income for single filers and $150,000 for joint filers.

The deduction does not make Social Security benefits universally tax-free. See the IRS senior-deduction guidance and coordinate the tax details with your tax professional.

Ways Your Claiming and Work Decisions Affect Benefits

Claiming age and your earnings record affect the benefit in different ways. Consider both alongside the income available from the rest of your retirement plan.

Review Your Earnings Record

An additional year of work may increase your benefit if its earnings replace a lower-earning or zero year among the 35 years used in the calculation. Higher pay does not automatically increase the benefit; review your earnings record and personal estimates.

That only applies up to the taxable maximum (the "wage base"), which is $184,500 for 2026. Earnings above that are neither taxed for Social Security nor counted toward your benefit.

Delay Claiming Benefits

If you were born in 1960 or later, you can start Social Security after turning 62. But you'll receive less than if you wait until your full retirement age of 67, when you receive 100% of your benefit.

Waiting past 67 increases your benefit by 8% a year until 70, up to roughly 124% of the full benefit.3

In 2026, the published maximum benefit is $5,181 a month for a worker who claims at 70, versus $2,969 for a worker who claims at 62. These are different claiming-age examples, not estimates for the same person; use your own earnings record to compare dates.1

Start Financial Planning

There is no single best claiming age for every household. Todd can help you consider how the choice fits your income needs, investment withdrawals and broader retirement plan.

Schedule a free, no-obligation introductory meeting with Todd to discuss the decisions ahead and whether our approach could fit.

This material is intended for informational/educational purposes only and should not be construed as tax, legal or investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Certain sections of this material may contain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is no guarantee of future results. Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption of any kind. Please consult with your financial professional and/or a legal or tax professional regarding your specific situation and before making any investing decisions.

Not associated with or endorsed by the Social Security Administration or any other government agency.

Endnotes

1 “2026 Social Security Changes.” Social Security Administration. https://www.ssa.gov/news/en/cola/factsheets/2026.html.

2 “Social Security Benefit Amounts.” Social Security Administration. https://www.ssa.gov/oact/cola/Benefits.html.

3 “Social Security Benefits Planner: Delayed Retirement Credits.” Social Security Administration. https://www.ssa.gov/benefits/retirement/planner/delayret.html.