Wealth Insights

Wondering when to claim Social Security? Consider these 5 factors

Maximizing Social Security benefits can be complex, but with guidance you can move forward with confidence.

As retirement nears, you’ll face a key decision: When to claim Social Security benefits. Understanding how timing impacts your benefit amount is crucial, as it can significantly affect the total income you receive over your lifetime.

If the question is “When is the most appropriate time to claim Social Security?” you should know that there isn’t a single best answer that will fit everyone. Your optimal claiming strategy depends on your specific financial situation and personal circumstances, as we’ll explore below.

However, by learning about your options and seeking professional guidance, you can make a confident and informed decision for your retirement income.

Understanding the evolution of Social Security

Since Congress passed the Social Security Act in 1935 to create the program, it has evolved considerably. It remains an important source of income for Americans, regularly adjusted for inflation through a cost-of-living adjustment (also known as a COLA). As of April 2025, Social Security distributed around $134.5 billion in benefits to about 73.9 million Americans, including retirees, individuals living with disabilities, and the dependents and survivors of those who contributed to the system.¹

The latest on Social Security trust funds

The aging U.S. population has implications for Social Security’s finances, however. The number of beneficiaries receiving money from the system is growing faster than the number of people who are paying into it.¹

Social Security’s payroll tax collections and other earmarked income are deposited into trust funds. All the program’s benefits and administrative expenses are paid from the trust funds.

For many decades, however, the system took in more than it paid in benefits and other expenses, and the Treasury invested the excess in interest-bearing Treasury securities. In 2021, Social Security began drawing down those trust fund reserves to support the payment of benefits.²

A new projection on the solvency of the Social Security trust funds issued in June shows that those reserves are due to be depleted in 2034, one year sooner than originally projected.² At that point, the program will still be able to distribute around 81 percent of promised benefits.² That’s in the unlikely event that policymakers make no changes to shore up the program – they still have ample time to thoughtfully design a solution that minimizes cuts to the program’s modest but vital benefits.

Social Security at 62, 67, or 70?

To simplify, we’ll explore three main scenarios in claiming your benefits.

Claiming early. Retired workers first become eligible to claim benefits at age 62, but if you choose to claim early your benefits will be permanently reduced. For someone born in 1960 or later, claiming at age 62 would result in a nearly 30 percent reduction in benefit compared with claiming at your Full Retirement Age (FRA) of 67.³

Claiming at Full Retirement Age. This is when you are entitled to 100 percent of your benefits. Your Social Security FRA is based on the year in which you were born.

Delayed claiming. You can delay your claim until a maximum of age 70 for a permanently increased benefit for the rest of your life. For those born in 1943 or later, your Social Security retirement benefit will increase by 8 percent for each full year you delay claiming benefits past your full retirement age (FRA), up to age 70.⁴ This increase is known as a delayed retirement credit.

5 factors to consider in your Social Security claiming strategy

1. Whether you need to maximize benefits for a couple. If you’re married, coordinating claiming strategies with your spouse can significantly maximize combined lifetime benefits, and this is something you can get professional guidance on from a financial advisor. A coordinated strategy often involves one spouse (usually the higher earner) delaying benefits while the other claims earlier or takes a spousal benefit. You might also want to think about survivor benefits. A widowed or a surviving divorced spouse may be eligible for survivor benefits based on your deceased spouse’s (or ex-spouse’s) earnings record, which may be higher than your own. There are also spousal benefits. Those with a spouse who was a higher earner may be able to claim on their partner’s benefit amount. If one spouse is the higher earner and significantly older than their partner, that is another special situation to handle carefully in a claiming strategy.
2. Your life expectancy. If you have longevity in your family and expect to live a long life, delaying benefits can potentially lead to a higher total lifetime payout. On the other hand, if you have health issues or a family history of shorter lifespans, claiming earlier may make sense.
3. Your other retirement income sources. Look at the big picture of your retirement finances. If you have enough in retirement savings and other income streams coming in, you might be able to delay claiming and accumulate delayed retirement credits.
4. Whether you have significant income-generating assets. A portion of your Social Security benefits may be subject to federal income tax, depending on the amount of taxable income you receive from rental properties or other income-generating assets.
5. Whether you plan to work in retirement. If you plan to continue working in retirement, even part-time, you should know about the earnings test. If you claim benefits before your FRA and continue to work, your benefits may be temporarily reduced if your earnings exceed certain limits. These withheld benefits are added back to your monthly payment once you reach your FRA.

Steps to get started

To get started on your personalized Social Security claiming strategy, you should go to the official Social Security Administration website (ssa.gov) and create or log in to your “my Social Security” account. This account will allow you to see a personalized estimate of your retirement benefits at different ages based on your own earnings record. This is also where you can find your specific Full Retirement Age (FRA). Keep in mind in your planning that once you decide to claim, it could take months for an application to process. There are also calculators that can help you estimate your benefits.

Because retirement can be tricky to envision, getting guidance from your professional financial advisor can also be a crucial step. They can create a financial plan for you and help you make a claiming decision in the context of your full financial picture.

Talk to your advisor at Regions about:

1. How to maximize your Social Security benefits.
2. Any questions you may have about navigating Social Security rules.

Want to get started with retirement planning?
Take the first step with our wealth management guide.

Interested in talking with an advisor but don’t have one?
Find a financial advisor in your area.

Sources:

1. Pew Research Center. “What the Data Says about Social Security,” May 2025.
2. Social Security Administration. “A Summary of the 2025 Annual Reports,” June 2025.
3. Social Security Administration. “Starting Your Retirement Benefits Early,” June 2025.
4. Social Security Administration. “Delayed Retirement Credits,” June 2025.