The decision of when to start collecting Social Security is one of the most consequential choices you’ll make for your retirement income — and 2025 may be the perfect time to build a personalized strategy before any new changes take hold.

Claim Now or Delay?

The temptation to claim at 62 is understandable, but delaying benefits can significantly increase your lifetime income. For every year you delay past full retirement age (up to age 70), your benefit grows by about 8%. Whether that trade-off makes sense depends on your income needs, health, and overall retirement strategy.

Breakeven Analysis: When Waiting Pays Off

Breakeven analysis compares the total value of benefits when filing early versus waiting. If you live past your early 80s, delaying typically results in more total income — but longevity isn’t the only factor. Your income needs and overall plan matter just as much.

Don’t Forget Spousal Strategies

If you’re married, your filing decision also affects your spouse’s benefit. Smart coordination strategies include:

  • Claiming a spousal benefit while delaying your own
  • Coordinating survivor benefits to maximize long-term income
  • Maximizing the higher earner’s delayed benefit for the household

The COLA Factor

Social Security benefits receive annual cost-of-living adjustments (COLAs). Delaying your benefit means those future COLAs are applied to a higher base amount — a meaningful advantage in periods of high inflation.

Tax Coordination with IRA Withdrawals

Timing Social Security also affects your taxable income. Strategically delaying benefits while drawing from an IRA or 401(k) can help reduce the taxable portion of your Social Security and lower your overall retirement tax burden — resulting in more after-tax income throughout retirement.

Let’s Find Your Optimal Filing Time

The difference between claiming strategies can mean hundreds of thousands of dollars over a retirement. Don’t guess on something this important. Contact us today at 708-665-6663 or marketing@4wealthfg.com. Or, visit 4wealthadvisors.com/get-in-touch to schedule a Social Security timing consultation and retire with confidence.