No‼️
That is not the goal nor shouldn’t be. The goal is to cover your monthly expenses – and more – in retirement and to maintain your desired standard of living.
Which claiming age will put the most money in retirees’ pockets over their lifetime? For that, I’ll turn to the statistical analysis conducted by online investment management and financial planning company United Income.
Four years ago, United Income released a report that analyzed the claiming decisions made by roughly 20,000 individuals. Using claims data from the University of Michigan’s Health and Retirement Study, United Income extrapolated individual claiming decisions to determine whether retirees had made an optimal choice — “optimal” in the sense that it resulted in the beneficiary receiving the highest possible lifetime benefit.
The Motley Fool
With no ideal formula for determining the optimal claiming age, we’re left to assess personal factors, such as financial needs, marital status, and health, to aid in the claiming decision process.
For instance, if you don’t have much saved for retirement, Social Security will likely represent a major source of income. If that’s the case, waiting and collecting a higher monthly benefit could be a smart move, depending on your health.
That leads me to the next point: Your health matters. If you have one or more chronic health conditions, an early filing can make sense. Remember, the goal is to maximize what you’ll receive from Social Security over your lifetime, not necessarily what you’ll net on a monthly basis.
The Motley Fool
If you don’t have much money saved for retirement and Social Security will be the major source of income, how can you afford to delay collecting Social Security for a higher benefit – unless you also delay retirement?
The goal when determining when to start Social Security is: Maximize your monthly income when you need it most – also considering the needs of a survivor.
That may be at age 62 or age 70 or any age in between. Why would you care if you maximize what you receive over your lifetime? You are either collecting a benefit or you are dead.
QUINNSCOMMENTARY 
It is my understanding that it is possible to continue working after 62 while drawing SS, but SS will be reduced by some ratio to dollars earned. How prevalent is this, and is there an advantage at some income levels?
In 2023, for example, you could earn $21,000 and still receive your full SS benefit.
LikeLike
This I have never heard before…
“You’ll Always Be Made Whole
Losing Social Security benefits because you might have to work can be a tough choice to make. But the good news is that ultimately it’s not an either-or proposition. If you lose Social Security benefits because you are working, they are never actually “lost.” Rather, they are simply suspended. The SSA will always make you whole for any suspended benefits.
Once you reach full retirement age, the Social Security Administration will recalculate your monthly payout and increase your payments to make up for your deferred benefits.”
LikeLike
$1 reduction for every $2 earned for working while drawing SS before FRA
LikeLike
Social Security examples…
you:
“Are under full retirement age all year. You are entitled to $800 a month in benefits. ($9,600 for the year)
You work and earn $31,240 ($10,000 more than the $21,240 limit) during the year.
Your Social Security benefits would be reduced by $5,000 ($1 for every $2 you earned more than the limit). You would receive $4,600 of your $9,600 in benefits for the year. ($9,600 – $5,000 = $4,600)”
And, apparently you get it back when you reach full retirement age*. Maybe not a bad plan for a low wage earner.
Technically, the benefits aren’t “reduced”. They are ” suspended “.
LikeLike
Many advisors and newsletters still recommend the “maximize SS over your expected lifetime” strategy. But, that presumes two things: 1) you can make a good estimate of “expected lifetime” based on actuarial and family history, AND (more importantly) 2) the increasingly dysfunctional US government will make needed changes so the current levels of projected payments will continue over the upcoming decades.
Under current law, when the SS surplus (“trust fund”) is depleted in 10-12 years, ALL SS payments will be reduced by 20-25% so that payments match taxes collected. That will be extremely unpopular politically. It is increasingly likely the laws will be changed to lift the payroll tax income max AND impose some kind of means testing. Then, those of us who planned and saved for retirement, have pensions and other income, are likely to see a significant reduction to our currently projected SS payments.
So, if you NEED SS (main source of income), you should work as long as possible, and delay starting SS. But, if you have sufficient income without SS, you should take it as soon as you stop working and reach minimum age to collect, and add that to your savings. (Personally, I am in the latter group, so will likely start SS at 62. I am also very glad that my mother, during the 28 years she collected SS, received back everything she paid into it, and everything I ever paid in such payroll taxes.)
LikeLike
The typical person receives in benefits all they and their employers paid in taxes in about 8 years
LikeLike
“The typical person receives in benefits all they and their employers paid in taxes in about 8 years.”
TRUE – That is why there is no justification for the higher paid worker to receive the bigger check. I would like to see an adjustment to the system so everyone receives the same benefit amount. Or at least a SS benefit for lower paid workers that at least keeps the lower paid worker above the poverty level. My 93 year old mother’s benefit is only $750 per month, does not. But I guess it is ok for the higher paid worker to get a big windfall from SS after getting all FICA taxes paid back.
LikeLike
“AH…easy free money” is the allure to claim SS ASAP. I claimed at age 70. Why did I wait…because I didn’t need the SS money. Still working in my mid 70’s full time because I like my work and feel needed. I have all the money I will ever need. Never lose a night’s sleep worrying about money.
LikeLike
I do not know how you would figure out how to maximize your Social Security over your lifetime unless you knew the exact date of your death and cause. The only way to maximize the amount that you collect is to live past the assumed date of your death in the actuary tables. Only then will you be a winner. The basic truth is by age 78 give or take a month for my age group, it doesn’t matter when I start, by age 78, I would have received the same amount of money and in theory, then I should die.
Start taking Social Security when you need it, not when you want it.
LikeLike
People are strange when it comes to claiming Social Security. One of my sisters and her husband both raced to file for benefits at the first opportunity at age 62 and then spent the rest of their lives claiming they got less money each month than everybody else. My sister even advised her eldest son not to wait but file at 62. I never could get through to her what she was doing.
The moving parts of the effects of the age at claiming benefits seems to be more than a lot of people can handle. Articles such as the Motley Fool put out don’t clear the air either, although most people don’t read and just fly by which way the wind blows.
LikeLike
I have a sister still working at age 70, and one who “retired” last year at 80 something. And a brother who passed at 67 still working, never having drawn SS. All menial jobs. Sometimes you just keep working until you can’t anymore. For a lot of people, there is no choice.
LikeLike