Q & A
Ask Rusty – Consider the “Wearing Out” Factor While Deciding When to Claim Social Security
Dear Rusty: Enjoyed your recent article on claiming SS benefits. I feel, however, any decision making should also include what I call the “wearing out” factor. Yes, financial need, health, and longevity are definite criteria for a decision. The inevitable problem (I just turned 83) is the speed at which many of us descend down the back side of that hill after we hit around age 65. Yes, one might live to 85-90 but as you age after 65, many physical limitations begin to appear. Only then does one realize their earlier retirement decision (waiting to max out SS) might not have been honestly evaluated to the extent needed. I speak from experience: after having reached 60 in excellent health, I took early retirement from work, then Social Security at 62, and glad I did so. I figure the degree of slope on the backside of that “hill” will increase with age (it did quickly for me), so one best start enjoying a retirement life as soon as financially possible. Signed: Glad I claimed at 62
Dear Glad I Claimed at 62: Thank you very much for your excellent perspective on the “wearing out” factor. And please know that I wholeheartedly concur with your opinion that waiting for a higher Social Security benefit is not always the most prudent choice. For perspective, however, we have found that far too many people claim Social Security as soon as they are eligible at 62 simply because “it is there,” without fully analyzing whether that is the best option considering their personal circumstances.
You are correct – enjoying your retirement life while you are still physically able is a valid consideration. And that is why we always suggest that evaluating both your financial needs as well as your health and life expectancy is important. Fulfilling one’s “bucket list” is, indeed, an important consideration and if claiming Social Security at age 62 (after evaluating all factors) enables one to do that, then that is exactly the right choice. It obviously was for you.
Age does, indeed, tend to slow us down, so if taking the SS money early means being able to enjoy life while you still can, then that is a good decision. But having more money as you age can also make your “golden years” a lot more comfortable. As we have recently witnessed, inflation has an insidious way of reducing our financial comfort in retirement. Despite having a retirement pension from your primary working career, imagine how another 25% in your monthly Social Security payment (had you claimed at full retirement age instead of age 62) would help make your senior years more comfortable.
The fact is that no one can predict how long they will live nor whether they will do so in good health. All we can do is evaluate all our options under varying circumstances and make our claiming decision based on that analysis. And that is precisely what we advocate for at the AMAC Foundation’s Social Security Service. In no way did I intend to say that claiming at 62 was never the right choice; only that everyone should look at their complete personal circumstances when deciding when to claim Social Security.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-dvisory) or email us at ssadvisor@amacfoundation.org.
I’m 64, still employed, but the workloads and mandatory long hrs are becoming a health risk. I am eligible and vested to receive my pension now, and I’m trying to decide if taking my SSI early is the right decision. A part-time income may help offset my insurance costs. Any advice?
Gregory:
As AMAC Foundation Social Security Advisors, we are frequently asked the question of what’s the best age to start receiving retirement benefits. There’s no single best age for everyone and ultimately comes down to your individual choice. Everyone’s retirement plans are different and that’s why it’s difficult for me advising someone as to what they should do. The best decision is an informed decision. You should base your decision on several factors and one important one is regarding your individual and family circumstances.
You’ve got to look at whether it’s better for you to start getting benefits early with a permanently reduced monthly amount for more years or wait for a larger monthly payment in a shorter timeframe. The answer is personal and depends on several other factors, such as your current cash needs, your current health, and family longevity. You must also consider whether you plan to work in retirement and if you have other sources of retirement income. Study your future financial needs and obligations and calculate your future Social Security benefit. These are all important factors so weigh your choices carefully before making the crucial decision about when to begin your Social Security benefits.
One point I want to discuss is the possibility of you continuing to work while collecting your benefits as mentioned in your email. You may certainly work as many people do while collecting Social Security, but there is an Annual Earnings Test or limit, known by SSA as an AET, that SSA would be looking at once you begin collecting your benefits. For the year 2026, anyone who is under their Full Retirement Age or FRA is allowed to earn up to $24,480 from employment without the loss of their benefits. If you estimate that your AET amount will be over this amount by the end of the year, SSA will have to withhold $1 of your benefits for every $2 you plan on earning over the $24,480. Please note that SSA only looks at actual income from performing work and getting paid for your services. Unearned incomes such as pensions, annuities, or any other investments that you may receive do not count as income in the AET amount. The month you reach your FRA sees the AET stop and there’s no more withholdings from your benefits for earning over the annual amount set by SSA for that year and any others moving forward.
Another item of interest I like to bring up is whether you work with and have a financial advisor. They can often look at your retirement intentions and interests and make some good recommendations.
Something you did bring up in your comment is the mention of health coverage but will that offer sufficient coverage as you approach age 65. If you are or about to turn 65, you can apply for just Medicare and not your Social Security and that’s only if you wish to delay receiving benefits. This is a topic we can certainly discuss further in future email if you have Medicare questions.
If you haven’t already done so, please go to SSA’s website and establish a “my Social Security” account unless you already have one. You’re able to see retirement amounts at different ages and this can be helpful determining at what age you can apply for benefits that will meet your financial needs. Applying for retirement benefits may done with SSA by calling them at 1-800-772-1213 and speaking with a representative who would set up a phone appointment with another representative. You may also do so online with SSA, which is what I usually recommend, by going to this link: https://www.ssa.gov/apply.
I hope this answers your questions and provides some guidance. Please don’t hesitate to contact us again or call our office at 1-888-750-2622 and mention this email.
Ken Baron, Social Security Advisor
AMAC Foundation, Inc.
The above is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org