Quick Takeaways

• You can file as early as 62 or wait until 70; after your Full Retirement Age (FRA, ~66–67 by birth year), benefits grow roughly 8% per year until 70.
• Claiming earlier can reduce the need to sell investments during downturns.
• Claiming later can improve lifetime after-tax income and create a larger, more secure base – especially for the higher earner in a couple.
• The “right” answer depends on health, longevity, cash-flow needs, taxes, and spousal coordination. Not just the biggest monthly check.‍

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1) Start with the math

• Before FRA → reduced monthly benefit.
• After FRA → delayed credits (~8%/yr) up to age 70.

Think in lifetime dollars, not just the monthly check: bigger checks later = fewer total checks; smaller checks earlier = more months paid.

Rule of thumb: If you expect average or better longevity and don’t need the income today, waiting often wins. If health is uncertain or cash flow is tight, earlier can be prudent.

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‍2) Portfolio risk: why earlier can help

The first 5–10 years of retirement are most vulnerable to sequence-of-returns risk. If markets fall while you’re drawing from the portfolio, you may lock in losses.

Starting Social Security earlier can:

• Reduce withdrawals during a downturn,
• Keep more shares invested for a recovery,
• Provide a steady “paycheck” that helps you stick to the plan.‍

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3) Taxes: why later can help

Up to 85% of benefits can be taxable depending on combined income (AGI + nontaxable interest + ½ of benefits). Delaying can open a tax “window” in your 60s to:

• Draw from IRAs/401(k)s or do Roth conversions at lower brackets,
• Shrink future RMDs,
• Potentially reduce how much of Social Security is taxed once you do claim.

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4) Spouses & survivors: coordinate on purpose

• A surviving spouse generally keeps the higher benefit.
• Often, the higher earner delaying (even to 70) maximizes the survivor benefit; the lower earner can file earlier if cash is needed.
• Consider ages, health, and who would be most impacted financially.

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5) Personal levers that tip the decision

• Health & family longevity: shorter outlook → earlier; strong longevity → later.
• Working before FRA: the earnings test may temporarily reduce benefits (with make-up later).
• Cash reserves: more savings = more flexibility to delay; thin margins may argue for earlier.‍

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‍Common playbooks we see:

1. Safety-first (62–65): Minimize portfolio withdrawals and sleep at night. This is useful if health is uncertain.
2. Middle path (at FRA): Start once the earnings test ends and avoid the full early-claim haircut.
3. Max longevity insurance (wait to 70): Larger inflation-adjusted base for life (and survivor), with room for pre-claim tax moves.‍

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How GatePass helps:

We don’t look at Social Security in a vacuum. We model it with your investments, taxes, Roth opportunities, RMDs, healthcare, pensions, and spousal benefits to find breakeven ages and the trade-offs that matter. Then we turn that into a clear, written claiming plan you can follow.

Next step: If you’re within five years of filing, let’s run your personalized timing analysis and align it with your portfolio and tax plan. A few smart decisions now can add meaningful after-tax income over your lifetime.

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Unless otherwise indicated, commentary on this site reflects the personal opinions, viewpoints and analyses of the author and should not be regarded as a description of services provided by GatePass Capital or its affiliates. The opinions expressed here are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any security or advisory service. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice. While all information presented, including from independent sources, is believed to be accurate, we make no representation or warranty as to accuracy or completeness. We reserve the right to change any part of these materials without notice and assume no obligation to provide updates. Nothing on this site constitutes investment advice, performance data or a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Investing involves the risk of loss of some or all of an investment. Past performance is no guarantee of future results.

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