Eight things to know before you pick a claiming date — each with the number that makes it matter.
- Confirm your earnings record at ssa.gov. Your benefit is the average of your 35 highest-earning years. Wrong or missing years lower it. This is a 10-minute fix with an outsized payoff.
- Count your zero years. Fewer than 35 years worked means the gaps count as zeros in the average. One more working year can replace a zero and raise every future check.
- Know your Full Retirement Age (FRA). It's 67 for most people retiring now. Everything else is measured against this number, so write it down first.
- Know the cost of claiming early. Claiming at 62 instead of FRA cuts your check by roughly 30% — permanently. Not for a few years. For life.
- Know the value of waiting. Every year you delay past FRA (up to 70) adds about 8% a year. That's a guaranteed, inflation-adjusted increase you can't buy anywhere else.
- Line up your other income. Pension, part-time work, IRA/401(k) withdrawals, rental income. Your Social Security stacks on top of these and can push you into a higher tax bracket — so the claim decision and the withdrawal plan are really one decision.
- Understand the taxes. Depending on total income, up to 85% of your benefit can be taxable. Most people assume it's tax-free and get surprised. When you claim changes this. Confirm the specifics with your tax advisor.
- Mind the earnings limit if you're still working. Claim before FRA while working, and Social Security can temporarily hold back part of your check if you earn over the annual limit. You get it back later — but the timing catches people off guard. After FRA, there's no limit.
The one number no calculator has: your health and family longevity. If people in your family tend to live long, waiting usually wins. If they don't, claiming earlier can be the smarter move. Everything above is the math; this is the judgment.
Austin advises employer-sponsored 401(k) plans and works with pre-retirees and business owners across South Carolina.
This checklist is for educational purposes only and does not constitute tax, legal, or individualized investment advice. Social Security rules, benefit amounts, and tax treatment depend on your specific situation and can change. Consult the Social Security Administration and your tax advisor before making any decisions.
Austin Harley is a financial advisor with Roadstead Capital Partners. Securities and advisory services offered through Osaic Wealth, Inc., member FINRA / SIPC. Roadstead Capital Partners is not affiliated with Osaic Wealth, Inc. Check the background of this firm on FINRA BrokerCheck.