This article will focus on single individuals and when the best time is to file for Social Security benefits. Singles are defined as anyone who has never had a spouse, or someone who has had a spouse and was not married to that person for a least 10 years.
Just about every article written about this topic centers around your age as the best time to file. Although age is important, it should only be one of the factors that you consider when determining when to file for Social Security benefits.
“File early at 62, file later at full retirement age or wait until 70, which one is right for you?”
Every situation is different, so the right filing date is unique to you. What do you need to consider before filing for benefits? The considerations listed below will guide you in determining your filing date:
Cash Flow – Do you need the money now?
Working – Will you be working from age 62 to your full retirement age? If so, you will be subject to the annual earnings limitation of $23,400 in 2025.
Children – Do you have children from a previous marriage that are under 19?
Health – How is your current health and do you expect to live to 80?
Genes – Does longevity run in your family?
Taxes – Are you concerned about taxes and being pushed into a higher tax bracket?
Investments – How will your investment portfolio (investments in the stock market, IRAs, 401K) supplement your retirement cash flow and affect your claiming strategy?
Future – Even before the new Department of Government Efficiency (DOGE) initiatives, the Social Security administration was expecting a 20-percent to 30-percent reduction in benefits between 2032 and 2034 if no changes are made to secure the necessary funding to continue benefits at current levels. Because of this, you should consider taking benefits earlier than you had projected.
Singles have a different planning process as they do not have the added step of coordinating their Social Security benefits with a spouse. Also, to defer taking your benefit so your spouse will have a greater survivor benefit is not in the equation. For most singles, I’ve always been a proponent of taking their benefit at their full retirement age, unless cash flow is needed sooner to support your existing lifestyle. The reason for waiting until full retirement age is that the annual earnings limitation goes away and the increase in lifetime benefits by waiting until 70 is only about 3-percent.
The chart below shows your lifetime benefits using a life expectancy of 85 at different full retirement age levels. Bottom line, no matter what your full retirement age benefit is, waiting to collect benefits at 70 versus 67, will only produce an increase of lifetime benefits of approximately 3-percent.
One final thought, if you file for benefits after your full retirement age you should consider requesting retroactive benefits. You may be able to receive up to six months of benefits up front.
Determining your personal Social Security claiming strategy should consist of taking these variables into account. Remember, take the wrong benefit at the wrong time, it’s always smaller and forever.
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