The conventional wisdom about Social Security has long been clear: delay claiming as long as possible to maximize your lifetime benefits. Financial calculators, planning tools, and many advisors default to this recommendation. But what if this one-size-fits-all approach isn’t actually the best strategy for you?

As a financial planner, I look beyond the standard advice to consider each client’s unique circumstances. While delaying until age 70 maximizes the monthly benefit amount, there are numerous scenarios where claiming earlier might better serve your financial and personal goals.

In this article, we’ll explore nine compelling reasons why you might want to claim Social Security benefits earlier than conventional wisdom suggests. Let’s start with some basics.

Understanding the 2025 Social Security Landscape

Before diving into claiming strategies, let’s review the current Social Security environment in 2025:

• A 2.5% Cost-of-Living Adjustment (COLA) has been implemented
• The average monthly retirement benefit has increased to $1,976
• The earnings test threshold has been raised to $23,400
• The worker-to-beneficiary ratio stands at 2.7 workers per beneficiary
• Trust fund depletion is projected for 2033 without legislative changes

With these updates in mind, let’s examine when claiming Social Security early might make sense for you.

1. Limited Life Expectancy

Social security claiming age considerations should include health status and family longevity.

The default assumption in most financial planning tools is longevity. These tools often project to age 90, 95, or beyond. However, if your life expectancy is shorter due to health conditions or family history, claiming earlier often makes mathematical sense.

The breakeven point between claiming at 70 versus claiming earlier typically falls between ages 78 and 82. If your life expectancy doesn’t suggest you will reach that age, you may collect more total benefits by claiming earlier. This isn’t about being pessimistic—it’s about being realistic and maximizing the total benefit based on individual circumstances.

2. Immediate Cash Flow Needs

Deciding when to claim social security benefits should factor in immediate cash flow requirements. Simply put, some people need the income now. While creating a comprehensive retirement income plan is ideal, Social Security can provide a reliable income stream when you lack other liquid assets or don’t want to draw down your investment portfolios too quickly.

Social Security essentially functions as an annuity, providing a guaranteed income. If you are concerned about market volatility or need predictable income, starting benefits early can create financial stability and peace of mind.

3. The Start-Stop Strategy Advantage

Many clients are unaware that they can claim Social Security benefits early and then suspend them when they reach full retirement age (currently between 66 and 67). This “start-stop” approach allows you to:

• Begin receiving benefits during an unexpected early retirement
• Test the waters of retirement without fully committing
• Suspend benefits if you return to work
• Earn delayed retirement credits of 8% annually from suspension until age 70

This strategy provides flexibility if your work and retirement plans are in flux, allowing you to adapt your claiming strategy as your situation evolves.

4. Legacy Planning Considerations

If leaving a financial legacy is a priority for you, the analysis must go beyond just cumulative Social Security benefits. Many online calculators only consider the breakeven point of lifetime Social Security payments, missing a crucial factor: portfolio preservation.

Consider this scenario:

A client who delays Social Security until 70 might need to withdraw 8-9% annually from their portfolio during those delay years. Conversely, a client who claims at 65 might only need to withdraw 4-5% annually. The lower withdrawal rate gives the portfolio a better chance to grow, potentially preserving more wealth for heirs.

The proper analysis should examine not just when Social Security benefits break even, but when the investment portfolio recovers from the higher early withdrawals. In some cases, this portfolio preservation aspect often tilts the scales in favor of earlier claiming. 

5. Market Volatility Protection

Market conditions significantly influence the decision of when to claim Social Security benefits. Claiming early may provide stability during market downturns.

Imagine retiring during a bear market, such as 2008, 2020, or 2022. Your portfolio has already taken a hit, and now you need to start withdrawals.

If you’re delaying Social Security, you might need to withdraw 8% or more from a diminished portfolio, potentially causing permanent damage to your retirement sustainability. Claiming Social Security during market volatility can reduce pressure on the investment portfolio, allowing it time to recover.

This strategy can be particularly effective when combined with the start-stop approach mentioned earlier. Clients can claim benefits during market downturns, then suspend when markets recover and they reach full retirement age.

6. No Spousal Benefit Concerns

For married couples, it’s generally advisable to delay the higher earner’s benefit, especially if longevity is expected. This maximizes the survivor benefit, as the surviving spouse will receive the higher of the two benefits upon the death of their spouse.

However, if you have the lower benefit or are single, this consideration doesn’t apply. In these cases, claiming earlier might be more sensible, especially if other factors, such as portfolio preservation or immediate income needs, come into play.

7. Hedging Against Future Benefit Changes

Some people are worried about potential future cuts to Social Security benefits. The Social Security trust fund is projected to be depleted by 2034. At this point, only about 80% of projected benefits would be covered by ongoing payroll taxes if no changes are made.

Over 50% of retirees depend on Social Security for a significant portion of their income. This means that it’s highly unlikely the Social Security benefits program will be eliminated entirely. Likely solutions to the funding gap include increasing the Social Security wage base cap (currently around $176,000) or slightly raising the payroll tax rate.

Still, some people prefer to “get theirs” now, while benefit payouts are certain. This is more of an emotional reaction than a mathematical decision. However, if you are concerned about potential means testing or benefit reductions, claiming earlier can be a reasonable hedge.

8. Self-Investment Opportunity

Some financially savvy people prefer to claim Social Security benefits early and invest those payments themselves. This approach can make sense if you:

• Have aggressive investment strategies
• Are comfortable with market volatility
• Have specific investment opportunities with potential for higher returns
• Value liquidity and control over their assets

By claiming early and investing the proceeds, you build assets on your own balance sheet rather than waiting for potentially higher future payments. These self-directed investments can be passed on to heirs, unlike Social Security benefits, which generally terminate upon the death of the surviving spouse.

9. Unlocking Benefits for Dependents or Spouses

An often-overlooked reason to claim Social Security benefits earlier involves dependent or spousal benefits. Your spouse cannot claim spousal benefits until you claim your own benefit. This is particularly important if:

• Your spouse has limited or no Social Security credits of their own
• You have dependent children under 18 (or still in high school)
• Your spouse is caring for dependent children

Dependent children can receive up to 50% of the primary amount (the benefit at full retirement age), but only once the primary earner claims their benefit. For clients with younger children or those in second marriages later in life, this consideration can be particularly significant.

Strategic Considerations for Couples

Social security break-even analysis should include portfolio effects, not just lifetime benefit totals. For married couples, coordinated claiming strategies are essential. Here are a few key approaches to consider:

1. Lower-earner claims early, higher-earner delays: This provides immediate income while maximizing the eventual survivor benefit.
2. Survivor benefit optimization: If one spouse passes away, the survivor can receive the higher of the two benefits. Delaying the higher earner’s benefit increases the survivor’s benefit.
3. Spousal benefit coordination: A spouse can receive up to 50% of their partner’s primary insurance amount at full retirement age (less if claimed early).

Remember that the “file and suspend” and “restricted application” strategies were largely eliminated by the Bipartisan Budget Act of 2015, but coordinated claiming strategies remain valuable for married couples.

Key Factors:

Developing effective social security claiming strategies requires understanding your unique situation. When deciding whether to claim Social Security benefits early, consider these essential elements:

1. Health status and family longevity: Be realistic about life expectancy based on health conditions and family history.
2. Financial need: Assess immediate income requirements versus long-term maximization.
3. Employment status: Consider whether continued work is likely or possible.
4. Marital status: Evaluate spousal and survivor benefit implications.
5. Other retirement resources: Analyze how portfolio withdrawals interact with Social Security timing.
6. Market conditions: Factor in current and expected market performance.
7. Legacy goals: Consider the impact on wealth transfer objectives.
8. Risk tolerance: Assess comfort with market volatility versus guaranteed income.

The most important advice? Don’t analyze Social Security claiming in isolation. It must be evaluated within the context of a comprehensive retirement income plan that considers all aspects of your financial situation.

Personalized Strategies Win

The “right” Social Security claiming strategy isn’t universal—it’s personal. While delaying benefits works mathematically for those with longevity, many real-world factors can make earlier claiming the optimal choice for you. For a deeper dive into claiming Social Security benefits early, check out Episode 68 of The Planning for Retirement Podcast.

Are you approaching retirement and feeling overwhelmed by the decision of when to claim Social Security? You don’t have to navigate this complex choice alone.

Our team is ready to help you develop a comprehensive retirement plan that aligns your Social Security strategy with your overall financial objectives, providing you with confidence in your retirement journey.

Take the first step toward a more confident retirement by completing our Retirement Readiness Questionnaire and subscribing to the Planning for Retirement podcast for in-depth financial planning strategies and insights.

This article is for general education purposes only and should not be considered as tax, legal, or investment advice.