Pillar Guide
Social Security Planning & Claiming Strategies
Author: Brett R. Henderson, CIMA®, CPFA®, CRPS®, CEPA®, AIF®, CLU®, BFA™
Last Updated: October 2025
Chartered Retirement Planning Specialist | Social Security credentialed (CFP®, ChFC®, CLU®)
Quick Answer
When should I claim Social Security benefits?
The appropriate time to claim Social Security depends on health, longevity expectations, earnings history, household benefits, other income, taxes, and individual circumstances. Claiming before full retirement age generally reduces the monthly benefit, while delaying beyond full retirement age can increase the monthly benefit up to age 70. A higher monthly benefit does not guarantee a higher lifetime benefit.
What Is Full Retirement Age for Social Security?
According to the Social Security Administration (SSA), full retirement age (FRA) is the age at which you're entitled to 100% of your Social Security benefit. FRA depends on your birth year:
Full Retirement Age by Birth Year
How Does Claiming Age Affect My Benefits?
The Social Security Administration adjusts your benefit based on when you claim relative to your full retirement age:
- Claim at 62: Benefits reduced by up to 30% permanently
- Claim at FRA: Receive 100% of your calculated benefit
- Delay past FRA: Benefits increase 8% per year until age 70
Claiming Age Impact Example
Illustrative example: full retirement age 67 and a $2,000 monthly primary insurance amount:
Claim at 62
$1,400
-30% permanent reduction
Claim at FRA (67)
$2,000
Full benefit
Claim at 70
$2,480
+24% increase
Assumes claiming at 62 produces a 30% reduction and delaying from age 67 to 70 earns 8% delayed-retirement credits per year, with no cost-of-living adjustments. Source: Social Security Administration retirement benefit rules, accessed July 2026. Actual benefits vary by birth year, earnings record, claiming history, household benefits, and future law.
What Are Spousal Social Security Benefits?
The SSA allows a spouse to claim up to 50% of their partner's full retirement age benefit if it's higher than their own benefit. Key spousal benefit rules:
- You must be at least 62 or caring for a qualifying child
- Your spouse must have filed for their own benefits
- Spousal benefits are reduced if claimed before your FRA
- Spousal benefits do not increase past FRA (no delay credits)
What About Survivor Benefits?
Surviving spouses can claim 100% of their deceased spouse's benefit (including any delay credits) as early as age 60 (with reduction). According to the SSA; this is why it often may be worth evaluating whether the higher earner should delay benefits to potentially increase a later survivor benefit.
How Are Social Security Benefits Taxed?
According to the IRS, up to 85% of Social Security benefits can be taxable depending on your "combined income":
- Below $25,000 (single) / $32,000 (married): Benefits are not taxed
- $25,000-$34,000 (single) / $32,000-$44,000 (married): Up to 50% taxable
- Above $34,000 (single) / $44,000 (married): Up to 85% taxable
"The single biggest Social Security decision most retirees face is when to claim. For every year you delay past 62 up to age 70, your benefit increases by approximately 6-8% per year. For a couple where both spouses have sufficient earnings history and average or above-average life expectancy, strategic claiming; higher earner delays to 70, lower earner claims earlier; may result in meaningfully higher lifetime household benefits. The dollar impact depends on each spouse's earnings record, ages, health, and other income sources. This is an illustrative estimate; use the SSA's online calculator or consult a Social Security specialist for a personalized analysis."
Brett R. Henderson, CIMA, CPFA, CRPS
Fiduciary Financial Advisor, SWE90, Social Security optimization specialist
Social Security Benefit by Claiming Age (Based on $2,500 FRA Benefit)
| Claiming Age | Monthly Benefit | Annual Benefit | Reduction/Increase |
|---|---|---|---|
| 62 (Earliest) | $1,750 | $21,000 | -30% from FRA |
| 63 | $1,875 | $22,500 | -25% from FRA |
| 64 | $2,000 | $24,000 | -20% from FRA |
| 65 | $2,167 | $26,000 | -13.3% from FRA |
| 66 | $2,333 | $28,000 | -6.7% from FRA |
| 67 (FRA) | $2,500 | $30,000 | Full benefit |
| 68 | $2,700 | $32,400 | +8% from FRA |
| 69 | $2,900 | $34,800 | +16% from FRA |
| 70 (Maximum) | $3,100 | $37,200 | +24% from FRA |
Illustrative only. Assumes a $2,500 monthly primary insurance amount, FRA 67, no COLA, and delayed-retirement credits through age 70. Source: Social Security Administration retirement benefit rules, accessed July 2026. Actual benefits vary.
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Frequently Asked Questions
When should I claim Social Security benefits?
The appropriate time depends on health, longevity expectations, earnings history, household benefits, other income, taxes, and individual circumstances. Delaying may increase the monthly benefit, but it does not guarantee a higher lifetime benefit.
What is full retirement age for Social Security?
Full retirement age (FRA) for Social Security is 67 for anyone born in 1960 or later. For those born between 1943-1959, FRA ranges from 66 to 66 and 10 months.
How much will my Social Security benefit increase if I delay?
For many people, delayed-retirement credits can increase the monthly retirement benefit by up to approximately 8% per year after full retirement age through age 70. For an FRA of 67, a simplified example shows a 24% increase by age 70 before cost-of-living adjustments. Actual amounts depend on birth year, earnings record, and Social Security rules.
Can I work while collecting Social Security?
Yes. If you are under full retirement age, the retirement earnings test may temporarily withhold benefits when annual earnings exceed the applicable limit, which changes over time. After full retirement age, the earnings test no longer applies. Check the current Social Security Administration limits.
What taxes do retirees pay on Social Security?
Up to 85% of Social Security benefits can be taxable depending on your combined income. Strategic planning with retirement account withdrawals can help minimize this tax.
Related Resources
Key Definitions
Evaluate Your Social Security Options
As a Chartered Retirement Planning Specialist (CRPS®), Brett Henderson helps clients evaluate Social Security claiming options in light of their earnings record, household situation, other income, and individual circumstances.
Schedule a Social Security AnalysisDisclosure: This content is for educational purposes only and does not constitute Social Security or financial advice. Social Security rules are complex and subject to change. Please consult with a qualified advisor for advice specific to your situation. Brett R. Henderson is a registered representative offering securities through Vanderbilt Securities, LLC, Member FINRA/SIPC.