Maximizing Your Social Security: When Should You Claim?

It’s Not Just a Monthly Check, It’s a Strategy

Social Security isn't just a benefit you collect; it's one of the most powerful levers in your retirement strategy. At Martello Retirement and Wealth, we don’t treat Social Security like a standalone decision. We look at it as part of your full financial picture, because the age at which you claim affects far more than the size of your monthly check.

Claiming too early, or too late, without a broader strategy can cost you tens of thousands of dollars over your lifetime, especially when you factor in taxes, Medicare premiums, and the ripple effect on your other income sources.

This blog isn’t about giving you a blanket answer. It’s about helping you understand how to think about claiming Social Security so that it supports the retirement you actually want.

The Basics: Your Timeline Options

You can claim your benefits anytime between age 62 and 70. Here’s what you need to know:

• Claiming Early (62-66): Your benefits are permanently reduced, up to 30% less than your full amount if you claim at 62. But in exchange, you get payments sooner.

• Full Retirement Age (FRA): This depends on your birth year, typically between age 66 and 67. At this point, you get your full benefit.

• Delaying Until Age 70: Each year you delay past FRA increases your benefit by about 8%. Wait until 70, and your check could be up to 24% more.

The catch? This decision can’t be made in a vacuum.

The Real Question Isn’t “When Can I Claim?” It’s “When Should I Claim, Given My Life?”

Every financial decision has context. Here are the key factors we evaluate with clients before making a Social Security decision:

1. How Long Might You Live?

If longevity runs in your family and you’re in good health, delaying could pay off. You may collect more over your lifetime, even though you start later. If your health isn’t strong, starting earlier might be smarter.

2. Do You Need the Income Now?

Sometimes it's not about optimization, it's about covering expenses. If you need the income at 62 or 63, there’s no shame in starting early. The key is knowing how it fits with your overall plan.

3. Are You Still Working?

If you earn income before your Full Retirement Age, some or all of your Social Security benefit might be withheld (temporarily). But once you reach FRA, you can earn as much as you like without penalty.

4. What About Your Spouse or Ex-Spouse?

Spousal, divorced, and survivor benefits can open the door to smart claiming strategies. You may be able to claim based on your spouse’s benefit while letting your own grow, or vice versa.

5. How Will It Affect Your Taxes and Medicare?

Social Security income can push you into a higher tax bracket or increase your Medicare premiums. The timing of withdrawals from IRAs or Roth conversions can either add to the problem or help manage it.

At Martello, we run projections to test all of this, how claiming at different ages impacts your taxes, healthcare costs, and long-term income.

Social Security Isn’t an Island

This decision interacts with the rest of your plan:

• Do you have enough in IRAs or other savings to delay Social Security?

• Could a Roth conversion strategy work better if you wait?

• Would claiming earlier protect your spouse better in the long run?

• Are you triggering higher Medicare surcharges by layering income incorrectly?

We help you zoom out and coordinate everything.

Common Myths (And Why We Disagree)

"Take it as soon as you can…you might die early."
This is fear-based, not strategic. A break-even analysis and health review offer more clarity.

"Wait until 70, it’s always the smartest."
Sometimes, yes. But if you’re drawing down retirement accounts inefficiently or can’t afford the delay, it could do more harm than good.

"My situation is too simple for a plan."
Even straightforward cases can benefit from integrated planning.

What We Recommend Instead: A Personal Timeline

At Martello, we build what we call a "Retirement Income Timeline" that maps out your income sources, taxes, and benefits year by year. Then we test different Social Security scenarios inside that model to find the best fit.

Our approach is rooted in planning, not guessing.

Let’s Build Your Strategy Together

This blog is meant to open your eyes, not close the case. The right time to claim Social Security is the time that best supports your bigger retirement plan. It’s about balancing income, taxes, lifestyle, and risk.

Ready to see how Social Security fits into your personal plan?  Schedule a free Retirement Strategy Consultation with Charles Culver. We’ll help you make the smart move, not just the default one.

Disclaimers:
Martello Retirement and Wealth, LLC is a Registered Investment Adviser. For more information about our firm, including our services, fees, and conflicts of interest, please refer to our Form ADV Part 2A, available on our website at https://www.martelloretirement.com/l/adv.

This content is for informational and educational purposes only and is not intended to provide specific tax, legal, or investment advice. Tax laws are complex and subject to change. Always consult with a qualified tax professional or attorney regarding your specific situation before making any tax-related or estate-planning-related decisions.

Past performance or hypothetical scenarios are not indicative of future results.

There are no guarantees that any tax or estate planning strategies discussed will achieve specific outcomes or avoid future tax liabilities.

The information provided is general in nature and does not consider your individual circumstances, financial goals, or needs. Personalized financial or tax advice can only be provided after a comprehensive understanding of your personal situation.

Unless expressly stated otherwise, any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.