Should You Listen to the Experts On When to Claim Social Security?

When should you claim Social Security? There are a lot of different answers to this question, depending on who you ask. There are financial gurus who have weighed in, and there have even been studies done that show when the optimum claiming age is for most seniors.

So, should you follow the advice of these financial professionals or use the data as your guide to decide when to file for your first Social Security check? Here’s what you need to know.

Should you trust the experts on the right age to claim Social Security? 

When it comes to expert opinions on when to claim Social Security, the advice is actually all over the map.

For example, finance expert Suze Orman recommends that you claim Social Security at the age of 70. Orman believes this is the right move because when you delay your claim, you avoid early filing penalties and you earn delayed retirement credits. The longer you wait to start your payments, the bigger each monthly Social Security check will be. You can maximize the income you get from this benefits program, which is a good thing since these benefits are guaranteed not to stop during your lifetime and have Cost of Living Adjustments in place so they keep pace with inflation by increasing over time.

Orman also explains that odds are most people who live until 65 are going to live long enough that a delayed Social Security claim — and the larger benefits that result from it — will give them more lifetime income than if they claimed their benefits ASAP. Most people will live so long that the higher checks they get due to the delay add up to more than the total amount of income they gave up by waiting after age 62 to claim benefits, despite first becoming eligible at that age.

On the flip side, though, finance expert Dave Ramsey recommends something different. Ramsey recommends starting your benefits when you first become eligible at 62, and then investing the money instead of just accepting the benefits increase the government offers you for delay. Ramsey believes you are going to be better off investing and will end up with more lifetime money if you go this route. 

Now, these are opposing opinions, so it would be hard to say that you should listen to one expert over another. Of course, it is true that there is some data to back up Orman’s version of events, with various studies showing that the majority of people wind up with more lifetime retirement income if they delay their  Social Security claim instead of starting early. But, most does not mean all, and there’s no guarantee that waiting is going to pay off in every situation.

How can you make your Social Security claiming choice?

Ultimately, it is helpful to take the advice of financial experts and the data from studies into account to understand more about your Social Security claiming options. But the right choice is really going to be an individual one based on your situation.

For example, someone who is in great health with family members who lived into their late 90s or even over 100 may be much better off delaying, while someone with a family history of serious health issues may be better off starting benefits as soon as they can. You may also decide an early claim makes sense even if it means giving up some of the money you could have collected during your lifetime, because you need the money to preserve savings or to allow you to retire in the first place.

Since your personal situation is what’s important, you’ll need to research the claiming options and decide for yourself what makes sense rather than just relying on generic expert opinions. Or you can work with a financial advisor to get personalized advice on your best claiming age, so you can have the best chance of making the choice that makes sense for your needs.