Social Security: When Should You Apply?

The truth is, there is no catchall “best” age to apply for Social Security benefits because your “optimal time” will vary based on your individual circumstances. Even though there is no one size fits all answer to this question, some factors every Baby Boomer should consider are:

• Individual health status

• Life expectancy based on that health status

• Estimated need for income during your retirement

• Whether you plan (or expect you’ll need ) to work during your retirement years

• Whether or not there are (or you anticipate) any survivor needs

The most obvious perk of delaying your benefit is that you will have an opportunity to collect more money. If you apply early, your benefit not only starts lower but it will stay lower for the rest of your life, it does not increase when you turn 66. Remember, COLAs will increase your benefit and the longer you expect to live, the more beneficial it is for you to delay your Social Security benefits. Also keep in mind that your decision will impact survivor benefits so it is an important consideration in planning your strategy, as a delay will increase survivor benefits as well. According to the Social Security Administration, the chart below illustrates an example of how delaying your Social Security may impact the amount of benefits you ultimately receive. This chart is intended for illustration purposes only and assumes a benefit of $1,000 at a full retirement age of 66: