FRIDAY, SEPTEMBER 11, 2026
THE RETIREMENT PAYCHECK - PART 2 OF 4
Social Security Is More Than Just Picking an Age
"When should I take Social Security?"
It sounds like a simple question. Age 62? Full retirement age? Age 70?
But Social Security claiming decisions can have consequences that last for the rest of your life - and potentially the life of your spouse.
That's why we don't believe the decision should begin with age. It should begin with your overall retirement plan.
The Earliest Check Isn't Necessarily the Best Check
Generally, retirement benefits can begin as early as age 62. But claiming before full retirement age permanently reduces the monthly retirement benefit.
Waiting beyond full retirement age can increase the benefit through delayed retirement credits until age 70.
That creates an understandable temptation to reduce the decision to a mathematical question: At what age do I break even?
Break-even analysis can be useful, but it doesn't tell the whole story.
Social Security is one component of a larger retirement income strategy.
Your Other Assets Matter
Suppose you retire at 64 but decide to delay Social Security. Where does your income come from in the meantime?
Perhaps you withdraw additional money from an IRA. Maybe you use cash or taxable investments.
Those withdrawals can create planning opportunities - or unintended tax consequences.
In some situations, strategically using retirement assets while delaying Social Security may make sense. In others, beginning Social Security earlier may be appropriate.
The answer depends upon the household.
Married Couples Have Another Decision to Consider
Social Security planning becomes even more important for married couples because the decision isn't necessarily about maximizing two individual checks.
It can also be about protecting the surviving spouse.
When one spouse dies, the household generally doesn't continue receiving both Social Security benefits. Survivor-benefit rules become important.
That means maximizing the higher earner's benefit may sometimes provide valuable longevity protection for the surviving spouse.
This is one reason we encourage couples to think about Social Security as a household decision rather than two separate claiming decisions.
Working While Collecting Can Matter
People who claim Social Security before reaching full retirement age and continue working should also understand the retirement earnings test.
For 2026, Social Security's earnings limits are $24,480 for someone under full retirement age for the entire year and $65,160 for someone reaching full retirement age during the year, with different withholding formulas applying above those limits. Once full retirement age is reached, the earnings test no longer applies.
That doesn't necessarily mean someone shouldn't work and collect Social Security. It means the rules should be understood before making the decision.
Social Security Should Fit the Plan
There isn't one "best" Social Security age for everyone.
Health, longevity expectations, marital status, employment, taxes, other retirement assets and income needs can all influence the decision.
Rather than asking, "What's the best age to take Social Security?" a better question may be: "How should Social Security fit into our retirement income plan?"
That's a much more useful conversation.
Next Friday, we'll examine something that can quietly take a larger bite out of retirement income than many people expect: taxes and Medicare premiums.