Filing Early for Social Security: When It Makes Sense

You may have heard that it’s better to file for Social Security later rather than earlier. After all, if you delay receiving benefits for as long as you can (up to age 70), payments increase significantly. (There’s no reason to wait past age 70, though.)

Still, filing as soon as you’re eligible might be the right choice. Here are some situations when that may be the case.

Key Takeaways

• Americans can claim Social Security benefits starting at age 62, which is earlier than the full retirement age.
• Claiming benefits early means getting checks sooner, but those checks will continue at a reduced amount.
• Sometimes it makes sense to claim benefits as early as possible rather than wait and get larger checks each month.

1. You Want to Retire Now—Or Are Unwillingly Retired

Unless you have other forms of income, filing for Social Security might be the only way you’ll survive without a steady job. If you’re laid off or find your job too difficult to maintain, it may be sensible to retire and take your benefits early. Usually, that’s not a good idea, but it can be the only option sometimes.

Here’s an escape route worth knowing about, just in case: If you are lucky and suddenly secure a job or other income source within a year after you take early retirement, you have the option to withdraw your Social Security application and pay back the benefits you got from Social Security. Then you can refile later when your benefits will be higher.

2. You’re in Poor Health

If you have a chronic condition or a terminal illness, you might consider taking your benefits early.

“Delaying benefits doesn’t make sense if there is a good chance you won’t be around to enjoy it,” says Jennifer Davis, CFP, of MAI Capital Management.

3. You Have Dependents

If you have children or other relatives who qualify as dependents on your tax return, they may be eligible for dependent benefits when you take your Social Security payout.

4. You’re Divorced or Have a Deceased Spouse

Filing early can make financial sense for those who are divorced but were married at least 10 years, as well as those who’ve lost a partner. The survivor benefits can be a great boon, especially for a single older adult. Each person can claim one benefit (their own or their spouse’s) at a time and wait to take the other benefit later.

5. Your Spouse Can Take Benefits Later

If you’re still married, you may only need to take one person’s Social Security benefits early. This strategy can give you some income immediately, while the other person’s benefits continue to grow.

Important

Make sure to do the math with the official Social Security calculator.

6. You Have No Other Assets

Social Security was never intended to be the sole support of people’s retirement years. For most folks, it is (or should be) a supplement to their income. But suppose a rampaging bear market has played havoc with your retirement plans. For example, the Great Recession of 2008 was a game-changer, erasing a decade’s worth of gains in many investment portfolios. If continuing to work isn’t an option, it might be best to ensure an immediate steady income stream via your benefits.

What Is the Social Security Administration?

The Social Security Administration is a federal body that manages the distribution of Social Security benefits. It tracks wages over lifetimes via Social Security numbers, which it creates and assigns.

What Is the Earliest Age You Can Collect Social Security at?

The earliest you can collect Social Security is age 62.

What Do Most People Get from Social Security?

The average monthly Social Security benefit for a retired worker is $1,925.46 as of November 2024.

The Bottom Line

The common advice still holds true for many, so don’t assume that filing early for Social Security is a good idea.

“It’s important to avoid the temptation to take Social Security early just because it’s available,” Davis says. “It may be the only steady source of income an individual has.”

If you’re not sure what to do, consider consulting a financial advisor.