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Episode 101 – Should You Take Social Security Early? It Depends on These 5 Key Factors

When should you take Social Security? It’s one of the most complex decisions retirees face.

In Episode 101 of Last Paycheck, Archie Hoxton and Jimmy Sutch walk through five major reasons someone might claim Social Security earlier than full retirement age. While the default advice often recommends waiting until age 70 for maximum benefits, the reality is far more nuanced.

1. Health and Longevity Expectations

If you expect to live into your late 80s or 90s, delaying Social Security could increase your lifetime payout. But if you have a family history of illness or personal health issues, it may make more sense to start sooner. Archie notes that the break-even point often falls in the mid-80s—if you’re unsure you’ll reach that, claiming early can be a rational choice.

2. Income Needs and Retirement Readiness

Many retirees don’t have large investment portfolios. If you need cash flow to cover basic living expenses, Social Security becomes a foundational income stream. Jimmy emphasizes that for some, claiming early isn’t just an option—it’s a necessity. Even forced early retirement due to layoffs or health can push this decision forward.

3. Legacy Planning Goals

What if your priority is passing on wealth to the next generation? In this case, taking Social Security early and investing it might help build an inheritance. This strategy assumes you don’t need the income immediately and can afford to put it to work elsewhere.

4. Doubts About Social Security Solvency

Worried the system won’t be around forever? You’re not alone. Archie places this concern in context—reminding listeners that Social Security has faced shortfalls before, and Congress has tools to fix it (like tax increases or raising the retirement age). Still, if personal peace of mind matters most, that’s a valid reason to file early.

5. Spousal Benefit Strategies

For couples with an age gap or income disparity, smart timing can boost household benefits. One spouse can claim early and then switch to a higher spousal benefit later. This staggered approach allows both cash flow and long-term gain.

Final Thought

There is no universal answer to when you should start Social Security. Instead of relying on a rule of thumb, consider your health, needs, legacy goals, and personal comfort with risk.

Wondering if you should take Social Security now—or wait?

Download our Social Security Timing Decision Tool to assess your health, income needs, and legacy goals so you can make the smartest choice for your situation.
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