When it comes to Social Security, the most common question we hear is: When should I start claiming benefits? It's a fair question, but it's also incomplete. The better question is: How does Social Security fit into my overall retirement income strategy?
The Number That Puts It in Perspective
Your benefit is calculated based on your 35 highest-earning years and the year you start taking payments. You can't change the first part, but you control the second. In 2026, the maximum monthly benefit looks very different depending on when you claim:
Age 62: $2,969/month
Age 67 (full retirement age): $4,207/month
Age 70: $5,181/month
That's a $2,212-per-month gap between claiming at 62 and waiting until 70.
“Just Wait Until 70” May Not Be the Best Answer
The break-even point typically falls between ages 78 and 81. The average life expectancy for a 65-year-old is about 84 for men and 87 for women, with a probability that at least one spouse in a married couple will live to 90. If you expect to live well past 80, delaying may make sense. If health or other factors suggest otherwise, claiming earlier may be the better fit.
What Most People Don’t Realize About Taxes
Up to 85 percent of Social Security benefits may be taxable depending on your income. Under the One Big Beautiful Bill Act, passed in 2025, taxpayers 65 and older can each claim a $6,000 deduction for tax years 2025 through 2028. According to the White House Council of Economic Advisers, only about 12 percent of seniors will pay taxes on their benefits because of this deduction. But it's set to sunset in 2028 if it isn't extended, so taxes on benefits need to be part of your long-term strategy.
Something else worth knowing: The year you claim benefits can create an unexpected taxable event if it coincides with a capital gain or a one-time income event.
We can help you better understand how Social Security will affect your overall retirement income, but your tax, legal, and accounting professionals can show you how your decision will affect your tax situation.
Your Decision Affects More Than Just You
If you're the higher earner, the age you claim directly shapes what your spouse receives as a survivor benefit for the rest of their life. Filing at 62 could lock your spouse into a permanently smaller payment. And if you're divorced after 10 or more years of marriage, you may be eligible for benefits based on your ex-spouse's record without affecting their payments.
Before You File
✅ Review your earnings record at ssa.gov
✅ Check out benefit estimates at multiple claiming ages
✅ Understand the earnings test if you want to work while collecting
✅ Confirm what your spouse is expected to receive as a survivor benefit
✅ See if your tax professional can run a tax projection for the claiming year
✅ Review how Medicare premiums interact with your benefits
The difference between a good claiming decision and a great one often comes down to coordination across taxes, withdrawals, survivor needs, and legacy goals. If you're approaching this decision, we're here to help you think it through.
