When is the right time to apply for Social Security? — Choosing the ideal age to receive the benefit you’ve earned

After a lifetime of hard work, you’ve earned your retirement — and all the benefits that come with it, including Social Security. But if you’re retiring before your full retirement age and have other sources of retirement income, you may want to put off applying for your Social Security benefits. Here’s why.

The longer you wait, the more you get¹

Your full retirement age is determined by when you were born, and ranges from 65 to 67. Everyone who is eligible for Social Security benefits can choose to start receiving them as early as age 62. However, if you apply before your full retirement age, you’ll receive a reduced benefit.

Here’s an example: Let’s say your full retirement age is 66 and your monthly benefit starting at that age is $1,000. If you choose to start getting benefits at age 62, your monthly benefit will be reduced by 25% to $750. Note that this will not increase back to $1,000 when you reach age 66, it will stay at $750. However, if you wait until you’re 70, your monthly benefit would increase to $1,320. There is no increase in the payout if you delay past age 70. If you live an average life span, your overall Social Security benefit will be about the same, regardless of when you start receiving it.

If you are married, there are additional scenarios that you should consider regarding the timing of when both spouses can optimize their Social Security choices. Married individuals are entitled to a spousal benefit based on their spouse’s earnings record — even if they have their own earnings record. At full retirement age (FRA), one spouse can receive 50% of the other spouse’s benefit if that spouse has already filed. Your benefit will be calculated so that you receive the highest amount — based either on your own earnings record or on your spouse’s earnings record. In addition, if you were married for at least 10 years and are now divorced, you are eligible to receive Social Security benefits based on your ex-spouse’s earnings records.

If you are eligible for your own benefit in addition to a spousal benefit there are strategies to maximize your lifetime income. Be sure to talk to a financial professional who has working knowledge on electing Social Security benefits. Together, you can help ensure you make a decision that provides you with the income you need, when you need it.

¹ For more information visit the Social Security Administration's web site.