A Strategy Guide for When to Claim Social Security SHP Financial

Deciding when you claim Social Security is a key part of the puzzle for your retirement plan. You can withdraw as soon as you turn 62, but you can also delay your claim until you are 70 years old. There are pros and cons to each, so how do you know which age is right for you?

Withdrawing at 62

People who withdraw before their “full retirement age” receive permanently reduced payments from their Social Security.[1] However, keep in mind that you’ll be receiving benefits for a longer period of time. Full Retirement Age varies from person to person and is determined by your year of birth. So, if you were born in 1943, your full retirement age is 66. If you were born in 1960, your full retirement age is 67.[2] You can go to the Social Security Administration’s website here to see what your full retirement age is.

As stated before, if you withdraw before your full retirement age, you lose out on a percentage of your benefits permanently. So, for example, if you expected a $1,000 Social Security benefit at your full retirement age, but you (being born in 1960) decided to claim your benefits early at the age of 62, your monthly payments would be permanently reduced by about 30%, making your Social Security benefit roughly $700.[1]

That’s the major drawback of withdrawing early. However, there are some pros to this strategy. For one thing, you’ll be collecting money. If you choose not to withdraw Social Security, you’ll have to find other sources of income until you do claim. Also, each year or month you have that extra income, the more it can add up over the rest of your life. In addition, if you pass away earlier than expected, you won’t receive what you were promised. Individuals who are in poor health might consider withdrawing early because they don’t expect to receive the benefits for very long. Also, individuals who need or want the supplement to their income might consider withdrawing early.

Withdrawing When You are Full Retirement Age or Older

Your Social Security benefits will get better the longer you choose not to claim them. You will receive the best possible benefit when you are 70 years old. So, after the age of 70, it will likely make sense for you to claim your benefits no matter what.[2]

Every month that you don’t collect your Social Security benefits after you reach full retirement age, your benefits increase by ⅔ of a percent.[2] This means that every year you wait to claim your benefits, you may gain roughly 8% in increased payouts, all else held constant.[2] This can also be a good option if you are working through your 60s, as a portion of your earnings will be withheld if you start withdrawing Social Security while you are working.[2] Although you will get the money back later after you reach full retirement age, you’ll have that much less to spend in the meantime.[2]


There are a lot of factors to consider when it comes to when you should withdraw your Social Security, and in general, there are a lot of factors to consider when it comes to retirement. If you are looking for a guide to designing your retirement plan, Click HERE to reach out to one of our professionals today at SHP Financial for a complimentary review of your finances.



This article is intended for educational purposes only and is not intended to serve as the basis for any purchasing decision.

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.
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