When is the best time to claim Social Security?
Good question. As you approach retirement, few decisions can impact your long-term financial well-being more than when you begin to collect Social Security. The conventional wisdom of "wait as long as possible" to begin collecting is often not the best solution. This is especially true if you are married or are able to collect a benefit from a former spouse. Your expected life span, income from other sources, and the time value of money all complicate any analysis.
This calculator was independently developed and is available at no cost. Behind the scenes it does a sophisticated month-by-month analysis and reports not only the best strategy, but also the worst strategy and the results of starting Social Security as early as possible and as late as possible. It accounts for the present value of future payments, survivor benefits if one spouse dies first, the "retirement earnings test", and expected life span. Many of the inputs like your expected life span are just estimates (obviously). This calculator makes it easy to go back and change any of them to see how your best strategy changes.
A complete analysis requires very little data. Just click "Enter Your Data" at left to get started!
Summary of Results
Click on a row to see details for that strategy below.
Useful resources...
- Social Security benefits information - www.ssa.gov/pubs/EN-05-10035.pdf
- Apply for benefits - www.socialsecurity.gov/retirement/about.htm
- Get your Primary Insurance Amount - www.socialsecurity.gov/estimator/
Just some of the advantages of this calculator over many others, including those that require that you pay a fee:
- It bases its analysis on the present value of future payments.
- If you are married it will switch you to a survivor benefit if your spouse dies first and it is higher than your own benefit.
- It applies the retirement earnings test if you or your spouse collects benefits and continue to work before your Full Retirement Age.
- It accounts for your expected life span. You can use a standard estimate based on your age and sex, or specify your own.
This analysis can only account for retirement benefits based on your or your spouse's income. If any family members receive disability, children's, or dependent parent's benefits these results may not be accurate. Moreover, it is not a complete financial plan. It does not consider factors such as the size of your retirement savings, your ability to work into your 60's, and your need for cash in the earlier years of retirement.
Usage tips
- The most important piece of information is your "Primary Insurance Amount" which you find by logging into the Social Security website.
- All amounts, including future payments, are in current dollars. Social Security payments will be adjusted for inflation when you receive them.
- You must be age 62 for an entire month before you can collect Social Security (or age 60 if your spouse is deceased). Unless you were born on the 1st or 2nd of the month, you can't start collecting until the month after you turn 62 (or 60).
- We present a single best strategy and a single worst strategy. Other claiming strategies may produce the same result, but they involve claiming at a later date.
- Click "Print Report" or use your browser's print function to produce a nice report of the results.
Privacy
We do not collect any personal identifying information, and neither we nor any third party tracks your activity from one session to the next. For your convenience, we do store the information you enter in a "cookie" on your computer so that you don't have to re-enter it when you come back to the site.
Contact
For suggestions and comments please email mike@whentoclaim.com.