Money Talks News may earn commission or revenue through links in the content below. Our editorial team independently selects all products. Compensation does not influence our recommendations.
It’s one of the most common money arguments in any marriage headed toward retirement: one spouse wants to claim Social Security the moment they turn 62, the other wants to wait.
Let’s say it’s Jim and Susan — a stand-in for the thousands of couples who’ve had this exact standoff at the kitchen table. Jim wants his checks now: “It’s my money, and who knows how long I’ll be around.” Susan wants him to wait: “We’ll get more later, and I’ll need it if you go first.”
I’ve been a CPA since 1981, and I’ve run this math more times than I can count. Here’s the part that ends most of these fights: claiming at 62 permanently cuts your benefit by about 30% compared with waiting until a full retirement age of 67 (1). Wait all the way to 70, and you collect roughly 24% more than your full-age amount, thanks to delayed retirement credits (2). And if Jim keeps working, part of those early checks can be withheld under the earnings limit (3).
Before you claim — or talk your spouse into it — here are five things the math says you both need to weigh.
What “62” really costs
Start with the raw tradeoff. For someone whose full retirement age is 67, claiming at 62 locks in about 70 cents on the dollar — a roughly 30% haircut that never goes away (1). Delay past 67 and the benefit grows about 8% a year until 70 (2).
That’s not a market return you can count on anywhere else. It’s guaranteed by the federal government.
The survivor-benefit trap most couples miss
Here’s what Jim’s “it’s my money” argument misses. When one spouse dies, the survivor keeps the larger of the two benefits — not both (4). If Jim claims early and locks in a reduced amount, then dies first, Susan is stuck with that smaller check for the rest of her life.
For the higher earner especially, waiting isn’t just about you. It’s a raise for whoever outlives you.
Life insurance can help fill that gap too, especially while you’re bridging the years before you claim. If anyone depends on your income, term life is the cheapest way to protect them. If you’re curious about cost, Money's Life Insurance Comparison shows quotes from top insurers side by side in minutes — free, no obligation.
One thing before we keep going — the financial world is louder and dumber than ever. Hot takes everywhere. Almost none of it is worth your time. I’ve spent 35+ years cutting through the noise so you don’t have to. Sign up for the free Money Talks Newsletter — 10 seconds, no spam, just the stuff that matters.
If you claim early and keep working, watch the earnings limit
If Jim claims at 62 and keeps working, there’s another trap. Before full retirement age, Social Security withholds $1 in benefits for every $2 you earn above an annual limit (3). You get it back later, but the surprise catches people who claim early expecting a full check on top of a paycheck.
The rule flips off the year you reach full retirement age — one more reason timing matters.
Bridge the gap so you can afford to wait
The real reason couples claim early usually isn’t strategy — it’s cash flow. They need income at 62 and don’t see another way to wait. If you own your home, there may be one.
With a reverse mortgage, you keep the title and stay in your home while spending the equity you’ve built. If you’re 62 or older and own your home, Longbridge Financial offers a free quote showing exactly what you’d qualify for, and a licensed specialist explains the costs and what it means for your heirs. You can get the facts in about two minutes.
Have someone run your specific numbers
Every couple’s answer is a little different. Health, other income, the age gap between spouses, and taxes all move the needle. This is worth modeling once, carefully, before anyone files.
This is the perfect time to enlist an outside expert. They’re not hard to find. For instance, SmartAsset instantly matches you with up to three fiduciary advisors — legally required to prioritize your interests. They can run your Social Security timing alongside your taxes and savings, as well as offering investment advice. $100K+ in investments? Get matched free in minutes.
The bottom line
So who wins the fight, Jim or Susan? Usually Susan — but not always. If your health is poor or you truly need the money at 62, claiming early can be the right call. What’s never right is deciding by who argues louder.
Run the numbers for your life, not your neighbor’s. The check you set up today is one you’ll live with — and one your spouse may one day live on.
Sources: (1) Social Security Administration — Benefit reduction for early retirement; (2) Social Security Administration — Delayed retirement credits; (3) Social Security Administration — Working while receiving benefits; (4) Social Security Administration — Survivors benefits
Add a Comment