When Should I Start Collecting Social Security?

What changes when you claim at 62, 67, or 70?

For someone whose full retirement age is 67, claiming at 62 generally provides about 70% of the full monthly retirement benefit. Claiming at 67 provides the full benefit, and waiting until 70 provides about 124%. These are general benefit rules, not Susan’s modeled results. Actual amounts depend on your earnings record and other rules. See Social Security’s early-claiming table and delayed-claiming table.

Claiming early means receiving benefits sooner but usually less each month. Waiting may mean using more savings in the meantime. A larger monthly benefit is not automatically the best choice for every household.

Susan’s story: A retirement plan is more than Social Security

Susan Parker is a hypothetical 62-year-old with $660,000 in starting retirement savings. Her plan includes Social Security, withdrawals from savings, taxes, and investment growth.

Her SageonRQ Audit compared her Current Plan with a Modeled Plan. It used her entered claiming age. It did not compare claiming at 62, 67, and 70 or determine her best Social Security claiming age.

What SageonRQ found

The Modeled Plan projects $133,143 more in net-of-tax ending value and $59,323 fewer lifetime required minimum distributions (RMDs). Lifetime federal taxes increase by $5,919. The modeled strategy includes approximately $346,858 in Roth conversions. These projections do not compare Social Security claiming ages.

Why the difference matters

Withdrawals, taxes, Roth conversions, and investment choices can all affect the amount left later in life. Susan’s reported overall annual return assumptions are 6.9% for Current and 7.2% for Modeled, a difference of 0.3 percentage points. The selected investment mix can affect ending balances along with the other planning choices. Neither return is guaranteed.

For another example of how these choices interact, see the retirement savings case study and the retirement tax tradeoff case study.

What should you do before choosing a claiming age?

Start with your expected monthly benefit at different ages. Then consider your retirement date, spending needs, other income, health, family circumstances, and how long your savings may need to last. A Social Security choice should fit the rest of your retirement plan.

How SageonRQ can help

The Retirement Opportunity Audit compares your current retirement approach with a modeled strategy using the information you enter. It shows possible differences in after-tax value, lifetime taxes, required distributions, and Roth savings. Read how Roth conversions may affect a plan.

Retirement Strategy Navigator is planned to provide deeper year-by-year planning, including Social Security opportunity analysis. Susan’s Audit did not perform that analysis.

Frequently Asked Questions

Is age 70 always the best time to claim Social Security?

No. Waiting generally increases your monthly retirement benefit, but your income needs, health, work plans, taxes, and savings can make an earlier age worth considering.

Can I retire before I start Social Security?

Yes. You may need to use other income or retirement savings until benefits begin. That can affect how long your savings last.

Does Social Security affect retirement taxes?

It can. Depending on your other income and filing status, part of your benefits may be taxable. Withdrawals and Roth conversions can also affect taxable income.

Does the SageonRQ Audit choose my best Social Security claiming age?

No. The Audit uses the claiming age you enter. A deeper claiming-age comparison requires separate analysis. Navigator is planned to support more detailed Social Security planning.

Will Susan’s results apply to me?

Not necessarily. Her results depend on her savings, income, spending, investments, and tax assumptions. Your analysis may show a different outcome.