Are You Really Ready to Start Collecting Social Security? 3 Signs It Might Be the Perfect Time.

Key Points

It’s possible to begin collecting Social Security benefits as early as age 62. Or, if you want to max out your monthly benefits, you can wait until 70 to claim your first check. The fact that you have options, each with pros and cons, can make it challenging to decide the right time for you.

As the Social Security Administration (SSA) points out, “there’s not a single ‘best age’ for everyone and, ultimately, it’s your choice.” To help you determine when the best time is to begin collecting, here are three questions to ask yourself.

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1. Are there any gaps in my budget?

Let’s say you’re partially retired but working part-time. To make ends meet, you periodically draw money from retirement savings or a pension. Still, you often have trouble covering all your monthly expenses. If this scenario describes you and you don’t want to return to work full-time, it’s a good sign you should at least consider claiming the Social Security benefits you’ve earned.

The first step is to visit my Social Security, an SSA site that breaks down how much you’re owed in benefits at any time. Knowing how much you can expect in monthly benefits can help you determine whether now is the best time to take the leap.

2. How much are my partner and I counting on spousal benefits?

Suppose you’re married and have historically earned more than your spouse. In that case, your significant other may plan to collect spousal benefits, rather than benefits based on their own work history. A spouse can receive up to 50% of the amount you’re owed. For example, if your monthly benefit at full retirement age (FRA) is $3,000, your spouse is eligible for up to $1,500.

If you haven’t yet reached FRA, consider what would happen if you were to retire now. Let’s say your expected monthly benefit at age 67 is $3,000, but you’re only 62. Claiming benefits now will cut your check by 30%, or $900 per month. That means your spouse will be eligible for $1,050 monthly instead of the $1,500 they’d be eligible for if you were to wait.

However, if you’ve faithfully invested through the years and aren’t counting on spousal benefits to ensure bills are paid, you may be ready to retire immediately. Any benefits received by your spouse could be invested for the future, go toward building a larger emergency fund, contributed to a grandchild’s college fund, or used for travel.

In other words, the less you’re counting on Social Security benefits to retire in style, the more confident you can be in making a claim now.

3. How’s my health?

Health issues are a challenge in many ways and can make it next to impossible to hold out for the largest possible Social Security check. If you’re ill, physically unable to work, or facing a health condition that may shorten your life span, claiming Social Security right away may be your best move. Not only will it help provide the income you need to pay bills, but the money may also allow you to spend more time focusing on your health.

To paraphrase the SSA, there is no “best age” for everyone. What’s right for you has nothing to do with what’s right for someone else. If you’re on the fence about what you should do, consider meeting with a financial or retirement planner who can walk you through the different scenarios you may face. If for no other reason, it will help you gain some peace of mind.

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