Social Security: When to Claim and How It Fits Into Your Retirement Plan

Social Security is one of the most important financial decisions you will make in retirement, and one of the most misunderstood. The difference between claiming at the right time versus the wrong time can be worth tens of thousands of dollars over the course of your retirement. Yet most people make the decision with very little planning behind it.

Let me walk you through how Social Security works, what affects your benefit, and how to think about the claiming decision as part of your broader financial picture.

How Social Security Works

Social Security retirement benefits are based on your earnings history. The Social Security Administration (SSA) looks at your 35 highest-earning years to calculate your Primary Insurance Amount (PIA), which is the monthly benefit you would receive if you claim at your Full Retirement Age. The more you earn and paid into the system over your career, the higher your benefit. (SSA, 2026)

If you have fewer than 35 years of earnings on record, the SSA fills in zeros for the missing years, which brings your average down. This is worth knowing if you took time out of the workforce or are early in your career.

Full Retirement Age: Know Your Number

Your Full Retirement Age (FRA) is the age at which you receive your full, unreduced benefit. For anyone born in 1960 or later, FRA is 67. For those born in 1959, FRA is 66 years and 10 months. This is the baseline the SSA uses to calculate both reductions for claiming early and increases for claiming late. (SSA, 2026)

It is important to know your FRA before making any claiming decision, because everything else revolves around it.

The Claiming Decision: Early, On Time, or Late?

You can start collecting Social Security as early as age 62 or as late as age 70. The age you choose has a permanent impact on your monthly benefit for the rest of your life. There is no one-size-fits-all answer, but understanding the trade-offs is the first step.

Claiming Early (Age 62)

Claiming at 62 gives you more total payments over time, but each check is permanently smaller. For someone with an FRA of 67, claiming at 62 reduces the monthly benefit by up to 30%. That reduction does not go away when you reach 67. (SSA, 2026)

Example: If your FRA benefit would be $2,000 per month, claiming at 62 could reduce it to approximately $1,400 per month for the rest of your life.

There are situations where claiming early makes sense, such as health concerns, job loss, or when other income is not available. But it is a decision that should be made deliberately, not by default.

Waiting Until 70

For every year you delay claiming past your FRA, your benefit grows by 8% through what are called Delayed Retirement Credits. Waiting from 67 to 70 adds 24% to your monthly benefit permanently. In 2026, the maximum monthly benefit at age 70 is $5,181 for someone with a maximum earnings history. (SSA, 2026)

Benefits do not increase further after age 70. There is no financial reason to delay past that point.

Waiting until 70 generally makes the most sense for people in good health, those with other income sources to cover expenses in the meantime, and higher earners looking to maximize their monthly benefit, particularly if they are the higher earner in a married couple.

Spousal Benefits: A Strategy Many Couples Miss

If you are married, your Social Security picture involves more than just your own benefit. A spouse who has little or no work history may be eligible to receive up to 50% of the higher-earning spouse’s FRA benefit. This spousal benefit does not reduce the primary worker’s benefit in any way. (SSA, 2026)

Spousal benefits can be claimed as early as age 62, but claiming early reduces the amount, just as it does with your own benefit. And unlike a worker’s own benefit, spousal benefits do not increase beyond FRA. There are no delayed retirement credits for spousal benefits, so there is generally no advantage to waiting past FRA if you are claiming as a spouse.

Example: Your spouse has a FRA benefit of $3,000 per month. You have little earnings history of your own. At your FRA, you may be eligible for up to $1,500 per month as a spousal benefit, with no reduction to your spouse’s check.

Divorced spouses may also qualify for benefits based on an ex-spouse’s record if the marriage lasted at least 10 years, the divorce has been finalized for at least two years, and both parties are at least 62. (SSA, 2026)

Survivor Benefits

If your spouse passes away, you may be eligible for survivor benefits based on their earnings record. A surviving spouse can generally receive up to 100% of the deceased spouse’s benefit, depending on the survivor’s age at the time of claiming. Survivor benefits can be claimed as early as age 60, or age 50 if disabled. (SSA, 2026)

One important planning note: unlike spousal benefits, survivor benefits do not increase past the survivor’s FRA. There are no delayed retirement credits available on survivor benefits, so there is no advantage to waiting beyond your FRA to claim them.

Survivor benefits interact with your own retirement benefit in ways that can be strategic. In some cases, it makes sense to claim one benefit first and switch to the other later. This is an area where getting personalized advice can make a meaningful difference. (SSA, 2026)

How Social Security Is Taxed

Many people are surprised to learn that Social Security benefits can be taxable. Whether yours are, and how much is taxable, depends on what the IRS calls your “combined income”: your Adjusted Gross Income (AGI) plus any nontaxable interest, plus 50% of your Social Security benefits. (IRS, 2026)

Here is how the thresholds work for 2026: (IRS, 2026)

• Single filers: If combined income is below $25,000, benefits are not taxed. Between $25,000 and $34,000, up to 50% may be taxable. Above $34,000, up to 85% may be taxable. (IRS, 2026)
• Married filing jointly: If combined income is below $32,000, benefits are not taxed. Between $32,000 and $44,000, up to 50% may be taxable. Above $44,000, up to 85% may be taxable. (IRS, 2026)

Note that 85% is the maximum portion of Social Security that can be subject to tax. You are never taxed 100% of your benefit.

This is where your other accounts come into play. Drawing from a Roth IRA in retirement does not count toward combined income, which is one of the reasons Roth accounts are so valuable as a planning tool. RMDs from a Traditional IRA, on the other hand, do count, which is one reason managing your pre-tax account balances before RMDs begin matters. This ties directly back to what we covered in our earlier posts on RMDs and Roth conversions.

Social Security and Medicare Premiums (IRMAA)

Your Social Security benefit can also be indirectly affected by IRMAA, the Income-Related Monthly Adjustment Amount. Medicare Part B and Part D premiums are higher for individuals with income above certain thresholds. Because RMDs and other taxable income in retirement can push you over those thresholds, your net Social Security income can effectively be reduced. This is another reason why Roth conversions and thoughtful account drawdown planning matter long before you reach retirement. (Fidelity, 2026)

Key Things to Know Before You Claim

• Your decision is mostly permanent. Once you claim Social Security, you generally cannot undo it. You have a 12-month window after your first payment to withdraw your application, but you must repay all benefits received. After that window closes, the decision sticks. (SSA, 2026)
• Working while collecting has rules. If you claim before your FRA and continue to work, the SSA may reduce your benefit if your earnings exceed certain thresholds. In 2026, the earnings limit is $24,480 for those under FRA. Once you reach FRA, you can earn any amount without affecting your benefit. (SSA, 2026)
• The breakeven analysis matters. If you delay claiming, you give up months of payments but receive a higher monthly amount for life. The breakeven point, where the total received from waiting equals what you would have collected by claiming early, is typically somewhere in your late 70s to early 80s. Health and longevity are real inputs to this calculation.
• Your benefit affects your spouse’s survivor benefit. If you are the higher earner in your household, the benefit you lock in, and when you lock it in, directly affects what your spouse could receive as a survivor. Maximizing the higher earner’s benefit is often one of the best financial decisions a married couple can make. (SSA, 2026)
• Create a My Social Security account. You can review your full earnings history and estimated benefits at any age at SSA.gov. It is a good idea to check it periodically to make sure your earnings are recorded accurately.

The Bottom Line

Social Security is not just a check that shows up when you turn 62. It is one of the most significant financial assets you have built over your working years, and the claiming decision deserves real thought and planning.

When you claim, how your other accounts are structured, what your tax picture looks like in retirement, and what your spouse’s situation is all play a role. There is no universal right answer, but there is usually a better answer for your specific situation.

Have questions about when and how to claim Social Security? Let’s talk!

Disclaimer: This blog post is for educational purposes only and should not be construed as personalized financial or tax advice. Social Security rules, benefit calculations, and taxation thresholds are subject to change. Benefit amounts referenced are based on 2026 SSA-published figures and apply to workers with maximum taxable earnings across 35 years; individual benefits will vary based on your earnings history. Spousal and survivor benefit eligibility depends on individual circumstances including marriage length, age, and claiming history. The taxability of Social Security benefits depends on your total income and filing status. IRMAA surcharges depend on income from two years prior and are subject to annual adjustment. Please consult with a qualified financial professional and/or tax advisor before making any decisions regarding Social Security claiming strategies or retirement income planning.This information is not intended to be a substitute for specific individualized tax advice We suggest that you discuss your specific tax issues with a qualified tax advisor. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. Educo Advisor Group and LPL Financial are not endorsed by or affiliated with the United States Social Security Administration or any government agency

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Jacob Campbell, CFP®

Jacob Campbell is a Paraplanner with Educo Advisor Group, where he assists with the financial planning process, day-to-day operations, and client services.

He graduated Summa Cum Laude in 2023 from California University of Pennsylvania with degrees in Accounting and Finance and a minor in Personal Financial Planning. During college, Jacob was a student-athlete on the soccer team, served as a student instructor for the finance department, and competed in the Financial Planning Association’s annual Financial Planning Challenge.

Jacob resides in Uniontown. Outside of work, he enjoys fishing, golfing, and coaching high school soccer.

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