Most people have heard two versions of the Social Security story.
One group says, “Take it as soon as you can. You never know what could happen.”
The other says, “Wait until 70. Your check will be a lot bigger.”
And really, they’re both right. But they’re only telling half the story.
The Case for Taking It Early
Taking Social Security early, as soon as 62, can feel like common sense. After all, it’s your money. You’ve worked for it. You might as well enjoy it while you can, right?
And there are some solid reasons to do just that.
- You need the income. Maybe you’re retiring before your savings are fully built up, or you just want to stretch your investments longer. Social Security can help cover everyday expenses without tapping too much into your nest egg.
- Your health is uncertain. If you have health concerns or a shorter life expectancy, starting benefits early might give you more years to actually use and enjoy what you’ve earned.
- You’d rather enjoy your early years. The first decade of retirement often includes the best years for travel, hobbies, and family time. We’ve seen people be hesitant to take money out of their savings to go on a big trip, but hardly anyone struggles spending their Social Security check. This is one of the many times that show, it’s not all just about the numbers.
- Market comfort. Some people just sleep better knowing they have guaranteed income coming in, even if it’s smaller. That stability can be worth more than the math on paper.
Still, there’s a cost to going early. Your check will be permanently reduced compared to waiting. That’s the trade-off: more money now, less later.
The Case for Waiting
Now, let’s look at the other side. If you wait until full retirement age (around 66–67 for most people), or even until 70, your monthly benefit can be significantly higher — up to about 8% more for each year you delay after full retirement age.
That higher check can help in several ways:
- You’ll lock in more guaranteed income for life. The longer you live, the more waiting tends to pay off. Someone who lives into their late 80s or 90s often receives far more total income by delaying.
- You can protect a surviving spouse. When one spouse passes, the higher of the two benefits continues. So delaying could mean a higher income for your spouse if you pass away first.
- You can reduce the strain on your portfolio. A larger Social Security check later may mean drawing less from investments in your 70s and 80s, helping your savings last longer. But keep in mind, you may have to draw more out earlier on in waiting for a higher SS benefit.
- You can build more financial flexibility. For people who can comfortably bridge the gap with other income sources, delaying can serve as a kind of “longevity insurance.”
But again, waiting isn’t free. You have to cover those early retirement years from somewhere: savings, part-time work, or other income. And if life throws a curveball, those bigger future checks may not matter as much as stability today.
The Real Answer
So which is better, early or late?
It depends.
If your health is strong, your family tends to live long lives, and your retirement income is solid without Social Security, waiting could make a lot of sense.
If you’re ready to retire, want to enjoy your active years and feel better about spending your SS check rather than your savings, or if you need the income to make retirement work, taking it early may be the right move.
It’s not about “winning” the system, it’s about making sure your plan fits your life.
Bringing It All Together
When we walk clients through this at Nickels Wealth, we don’t start with spreadsheets. We start with questions:
- What do you want these next ten years to look like?
- How much income do you really need now vs. later?
- How’s your health and your spouse’s?
- What gives you the most comfort?
Once we know that, we can run the numbers to show how each option might play out. Sometimes that means waiting. Sometimes it means starting earlier. But it always means making a decision that aligns with what matters most to you.
Because retirement isn’t just about how long you live, it’s about how well you live the years you’re given.
Whatever decision you end up making, don’t question it after the fact. Life is too short to worry about a decision that you made that can’t be undone.
You’ve been given a life to live and whether it’s funded through Social Security, earlier, later, or not at all, shouldn’t affect whether or not you enjoy that life.
