When it comes to retirement, Social Security is one of the biggest pieces of the puzzle—but it’s also one of the most misunderstood. You’ve likely heard a mix of advice from friends, family, or headlines: “Claim as early as you can,” “Wait until you’re 70,” “Take the money before it runs out.” With so many voices chiming in, it’s easy to feel overwhelmed or rushed into a decision.
But here’s the truth: claiming Social Security isn’t about following what others are doing, it’s about following your plan.
The rush to collect: why timing matters
Many people jump to claim benefits the moment they turn 62. And we get it–after years of working hard, the idea of finally getting something back sounds appealing. But that decision could reduce your benefit by up to 30% for life. That’s a major impact if you live into your 80s or 90s.
On the flip side, waiting past your full retirement age (FRA), typically between age 66 and 67, can increase your monthly benefit by about 8% per year. Over time, that adds up to a significantly higher income stream in retirement.
So, what’s the “right” age to claim? That depends entirely on your financial plan, health, income needs, and long-term goals.
Don’t chase what’s easy—build what’s right
There’s no one-size-fits-all answer when it comes to Social Security but it’s a key part of most people’s retirement income strategy. To get the most out of it, your choices need to be intentional and aligned with your long-term goals, not based on fear, assumptions, or what someone else is doing.
Want to stay on track? Focus on the basics
- Working at least 35 years: Your benefit is based on your highest 35 years of earnings—any missing years count as $0
- Watching for spousal benefits: Married, divorced, or widowed? You may be eligible for benefits based on your spouse’s record
- Avoiding income penalties: If you claim early and keep working, your benefits may be reduced until you reach FRA
- Factor in taxes: Up to 85% of your benefits could be taxable depending on your income
- Focus on you: Just because your neighbor claimed at 62 doesn’t mean it’s right for you
Confidence comes from a plan
It’s easy to get pulled into the emotion of “take it now or lose it later.” But making your Social Security decision based on fear someone else’s situation, can backfire.
With the right plan in place, you can approach this decision with clarity and confidence. At Anchor Wealth Management, we help you make smart, confident choices by focusing on what matters most: your future.
By Dan Leonard, CFA, Lead Planning and Trading Associate