Choosing when to take social security is an important decision to consider when preparing for retirement. Many folks wonder if they should take social security early or wait for a larger payout.
Age 62 is the lowest age at which Americans can begin to receive social security retirement benefits, and age 70 is the age at which social security benefits reach their maximum. There is no advantage to waiting after age 70 to begin taking social security.
There are several factors to consider when deciding what age to being taking social security benefits, including financial needs, taxes, health, and life expectancy.
Financial Needs
For those with pressing financial needs or who lack other sources of income, accepting social security as early as age 62 may be appropriate to ensure financial stability in retirement.
Waiting as late as age 70 can increase the monthly payouts from social security due to delayed retirement credits, which can provide those with other retirement income with more financial support in the long run.
Many individuals choose to start taking social security at an age between 62 and 70 to balance the timeliness of monthly payouts with the amount they will receive throughout their retirement.
Taxes
Taxation of your social security benefits is determined by your income, not your age—but claiming these benefits earlier results in permanently reduced payouts throughout your retirement.
The table below details income thresholds for federal taxation of social security benefits based on filing status and combined income:
| Filing Status | Combined Income | Taxable Portion of Social Security Benefits |
| Single | $25,000 – $34,000 | Up to 50% |
| Single | Over $34,000 | Up to 85% |
| Married, filing jointly | $32,000 – $44,000 | Up to 50% |
| Married, filing jointly | Over $44,000 | Up to 85% |
If you continue to earn income after claiming benefits, you’ll still pay social security taxes on your earnings, potentially increasing your future benefits.
As of 2025, nine U.S. states tax social security benefits:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia (set to end social security taxes in 2026)
Health & Life Expectancy
If you have serious health issues or expect a shorter lifespan than average, consider claiming benefits earlier to allow you to receive benefits for a longer period before death.
For those with severe disabilities, applying for Social Security Disability Insurance (SSDI) might be more appropriate than early retirement benefits. SSDI can be claimed before age 62 if the condition is expected to last at least 12 months or to result in death.
If health problems prevent you from working to earn income, claiming early retirement benefits at 62 might be important in order to cover living expenses you may otherwise struggle to afford.
If you’re in good health and expect to live longer than average, delaying benefits up to age 70 can result in higher monthly payments and potentially greater lifetime benefits.
Individuals retiring early due to health issues should consider how to cover healthcare costs before Medicare eligibility at age 65. Options include COBRA, your spouse’s workplace plan, or individual health insurance.
Choosing when to start taking social security payments is a major retirement decision with many factors that will affect your payout amounts for the rest of your life. We can help navigate the complexity of this decision—schedule a consultation with us today.
