Social Security may be one of the most important sources of income you’ll have in retirement. Yet many people spend more time deciding where they’re going on vacation than deciding when and how to claim their Social Security benefits.
That can be a costly mistake.
Social Security isn’t simply about reaching a certain age and turning on a monthly check. Your claiming age, earnings history, marital situation, retirement income, and overall financial plan can all play a role in determining the strategy that makes sense for you.
At MAC Wealth, we believe Social Security should be looked at as one piece of a much larger retirement-income picture.
So, how can you make the most of it?
Understand Your Full Retirement Age
One of the first things to understand is your Full Retirement Age (FRA).
Although Social Security retirement benefits can generally begin as early as age 62, claiming before your Full Retirement Age results in a reduced monthly benefit.
For people born in 1960 or later, Full Retirement Age is 67. Those born earlier may have a Full Retirement Age between 66 and 67.
That doesn’t automatically mean claiming early is a bad decision. It means there is a tradeoff.
Some retirees may need income sooner. Others may have health, family, or financial circumstances that make an earlier claiming strategy reasonable.
The key is understanding what you’re giving up—and what you’re gaining—before making the decision.
Consider the Potential Advantage of Waiting
If you don’t need Social Security immediately, delaying benefits beyond your Full Retirement Age can increase your monthly retirement benefit.
For someone born in 1960 or later, waiting from Full Retirement Age at 67 until age 70 can result in a benefit equal to approximately 124% of the benefit available at Full Retirement Age.
Once you reach age 70, however, delaying Social Security retirement benefits does not result in additional delayed retirement credits.
That’s why the question shouldn’t simply be:
“When can I collect Social Security?”
A better question may be:
“When does collecting Social Security make the most sense as part of my retirement plan?”
Those are two very different questions.
Don’t Make the Decision Based on Social Security Alone
This is where retirement planning becomes important.
Suppose you retire at 63 but would prefer to delay Social Security. Where does your income come from during the years in between?
Depending on your situation, income might be available from retirement accounts such as a 401(k) or IRA, pension income, cash savings, investment accounts, part-time employment, or other retirement-income sources.
The goal isn’t necessarily to maximize one individual account or benefit.
The bigger objective is to determine how your different retirement-income sources can work together.
Sometimes maximizing your Social Security check by itself may not maximize your overall retirement plan.
Know How Your Earnings History Affects Your Benefit
Social Security retirement benefits are generally calculated using your 35 highest years of earnings.
If you have fewer than 35 years of earnings, years without earnings can be included as zeros in the calculation.
Continuing to work may potentially improve your benefit if a new higher-earning year replaces a lower-earning year in your Social Security earnings history.
Before making a claiming decision, review your Social Security earnings record for accuracy and look at your personalized retirement estimates.
Your Social Security account can provide estimates based on different claiming ages and your recorded earnings history.
Be Careful When Working While Collecting Social Security
Retirement doesn’t always mean you stop working completely.
If you claim Social Security before reaching Full Retirement Age and continue working, your earnings could temporarily affect the benefits you receive if you earn more than Social Security’s annual earnings limit.
For 2026, someone who is under Full Retirement Age for the entire year can earn up to $24,480 before the retirement earnings test begins to apply.
Different rules and a higher earnings limit apply during the year you reach Full Retirement Age.
Beginning with the month you reach Full Retirement Age, the retirement earnings test no longer reduces your benefits based on how much you earn.
These limits can change from year to year, so don’t build a long-term retirement strategy around today’s numbers without reviewing the current Social Security rules.
Married Couples Should Think as a Team
Social Security planning can become more complicated when two spouses are involved.
Each spouse may have their own retirement benefit, and depending on the circumstances, spousal or survivor benefits may also come into play.
This means the highest monthly check for one spouse isn’t necessarily the only consideration.
For married couples, a Social Security claiming strategy may need to consider each spouse’s age, individual earnings records, expected retirement dates, other retirement income, longevity considerations, potential spousal benefits, and potential survivor benefits.
This becomes especially important when one spouse has earned substantially more than the other.
A coordinated Social Security strategy can be an important part of the household’s overall retirement-income planning.
Don’t Forget About Survivor Benefits
Social Security isn’t only about the income you receive while both spouses are living.
For married couples, the claiming decisions made today can potentially affect the financial picture after one spouse dies.
That’s one reason I encourage people not to look at Social Security as simply:
“How much can I get right now?”
Retirement planning should also consider the surviving spouse and what their income could look like years down the road.
For many couples, Social Security planning is also longevity planning.
Coordinate Social Security With Taxes and Retirement Withdrawals
Your Social Security decision doesn’t exist in a vacuum.
Retirement income may come from several different places, and each can have different tax characteristics.
Depending on your circumstances, distributions from traditional retirement accounts, pensions, investment income, and other sources may affect your overall tax situation—including whether a portion of your Social Security benefits is subject to federal income tax.
This is where retirement-income planning can become much more valuable than simply deciding which account to withdraw money from next.
A thoughtful retirement strategy may consider the timing of Social Security alongside retirement-account distributions and other income sources.
Tax laws are complex and can change, so specific tax questions should be discussed with a qualified tax professional.
Remember Medicare at Age 65
There’s another important age retirees shouldn’t overlook: 65.
Social Security and Medicare are related, but they aren’t the same decision.
Someone who delays Social Security until age 70 may still need to address Medicare enrollment around age 65, depending on their employment and health-insurance situation.
Missing certain Medicare enrollment periods can potentially result in penalties or gaps in coverage.
So, if your retirement strategy includes delaying Social Security, make sure Medicare is still part of the conversation.
There Is No Universal “Best Age” to Claim Social Security
I hear this question frequently:
“Art, what’s the best age to take Social Security?”
My answer is usually another question:
“What’s going on in the rest of your financial life?”
That’s because there isn’t one claiming age that’s right for everyone.
Your decision may depend on your health, longevity expectations, marital status, savings, retirement accounts, pension income, employment plans, tax situation, and monthly income needs.
Someone with substantial retirement assets may approach Social Security differently from someone who needs the income immediately.
That’s why I don’t believe Social Security should be treated as a stand-alone decision.
The Bigger Picture: Build a Retirement Income Strategy
Ultimately, maximizing Social Security isn’t necessarily about getting the largest possible monthly check.
It’s about making an informed decision that fits into your overall retirement-income strategy.
Your Social Security benefits, retirement accounts, investments, pension income, taxes, healthcare costs, and legacy goals can all interact with one another.
Before filing for benefits, consider stepping back and looking at the entire picture.
At MAC Wealth, we help individuals and families evaluate how Social Security may fit alongside their other retirement-income resources so they can make informed decisions about the years ahead.
If you’re approaching retirement and wondering when you should claim Social Security—or how Social Security fits into your retirement plan—we’d be happy to have that conversation with you.
MAC Wealth
Helping you plan for the retirement you’ve worked for.
Important Disclosure: This material is provided for educational and informational purposes only and should not be construed as individualized investment, tax, legal, or Social Security advice. Social Security rules, tax laws, benefit amounts, and program provisions may change. Individual circumstances vary, and strategies discussed may not be appropriate for every person. Consult the Social Security Administration regarding your specific Social Security benefits and eligibility, and consult qualified financial, tax, and legal professionals regarding your individual circumstances.