The Social Security Strategy That Looks Smart — But Isn’t

When it comes to deciding when to start taking out Social Security benefits, there are a few key factors to consider. While you can start receiving benefits as early as age 62, there are significant advantages to waiting until you reach full retirement age or even delaying until age 70.

One of the main reasons to wait before tapping into your Social Security benefits is that doing so will result in larger monthly checks. For example, in 2026, the maximum benefit at age 62 is $2,969 per month, compared to $5,181 per month if you wait until age 70. By delaying your benefits, you can significantly increase the amount you receive each month, providing you with a more secure financial future.

Some individuals may be tempted to take out their Social Security benefits early and invest the money in hopes of generating a higher return. However, this strategy can be risky, as it relies on the performance of the financial markets, which can be volatile. Additionally, as you get closer to retirement age, you have less time for your investments to recover from any losses.

Another advantage of waiting to take out Social Security is that it allows you to continue working, potentially increasing your lifetime earnings and resulting in higher benefits. Social Security looks at your 35 most productive years when calculating your benefits, so working a few extra years at a higher salary can replace lower-earning years and boost your overall benefit amount.

While it may be tempting to start receiving Social Security benefits early, it’s important to consider the long-term implications. Opting for smaller monthly checks at age 62 may not be enough to cover living expenses in the future, especially as costs continue to rise. By waiting to take out your benefits, you can ensure a more comfortable retirement and have greater financial security in the long run.

Ultimately, the best time to start taking out Social Security benefits will depend on your individual financial situation and goals. If you have other sources of income, a strong financial plan, and the ability to continue working, delaying your benefits may be the most prudent choice. By carefully weighing the pros and cons and considering all of your options, you can make an informed decision that sets you up for a successful retirement.