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Investment Services, Retirement Planning

With Social Security, Age is Not Only a Number

There are things to consider as you get closer to retirement, and one of those is what age you want to start drawing Social Security. As retirement gets closer and becomes more of a reality, it’s time to think about when you want to start taking your Social Security benefits. If you file before your full retirement age, the monthly benefit will be lowered. If you file after your full retirement age, your benefit will increase.

There’s no one formula for everyone that tells you the best time to start drawing Social Security. For someone who fully retires at age 67 (full retirement age per Social Security), they can expect to see the following percentages, based on the age they file for benefits:

62

70.0%

63

75.0%

64

80.0%

65

86.7%

66

93.3%

67

100.0%

68

108.0%

69

116.0%

70

124.0%

 

Your Situation is Unique to You

Everyone has different circumstances when it comes to retiring. Some have a great pension, others may have saved for years in a 401(k), or some may not have been prudent when it came to their finances and saving for retirement. Everyone’s numbers are different and it’s important to understand what is at stake if you need to claim benefits earlier. Some of the most common reasons to claim early include:

  • You need the money to live on
  • You need to quit working for health reasons
  • You are taking care of a family member
  • You lost your job or got laid off and can’t find other work
There are also reasons someone might want to wait:
  • Other income sources are enough for you to live on (other retirement plans or savings)
  • You think your life expectancy is longer and social security payments can help with cost of living increases as time goes on
  • You aren’t ready to stop working
  • You like the idea of getting the most out of higher benefits

The important thing to note is there’s no right or wrong answer, the best answer is the one that works for you. Once you decide to start drawing your Social Security benefits, there are penalties if you go back to work, so make sure you’re ready to hang up your hat and that you’re retiring at the right time for you.


Wondering when you should start drawing your Social Security benefits? Our Financial advisors are here to help you create a customized plan so you’ll be financially prepared throughout retirement.

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The financial advisors of Orange County's Retirement & Investment Services are registered with and offer securities and advisory services through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/ SIPC). Insurance products are offered through LPL or its licensed affiliates. Orange County's Credit Union and Orange County's Retirement & Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Orange County's Retirement & Investment Services, and may also be employees of Orange County's Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Orange County's Credit Union or Orange County's Retirement & Investment Services. Securities and insurance offered through LPL or its affiliates are:

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