In many scenarios, delaying Social Security can be a smart decision. You’re eligible to start collecting those benefits once you turn 62. But for each month you delay your claim past that point, up until age 70, your benefits are eligible for a boost. Locking in a larger monthly check from Social Security for life could help you avoid financial stress throughout your retirement.
But that doesn’t mean holding off on Social Security always makes sense. Here are a few signs that you should actually look to sign up for benefits as soon as you can.
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1. Your health is poor
Delaying Social Security will give you larger checks on a monthly basis. But holding off won’t necessarily give you the most lifetime income.
The longer you end up living, the more a delayed filing pays off. But if your health is poor and you’re therefore less likely to live a long life, then it could actually pay to sign up for Social Security as early as possible. Even though you’ll shrink your monthly benefit by going that route, you might end up with more money from Social Security overall.
2. Your savings are running out
It may be that you retired and figured you’d live off your savings so you could wait for Social Security as long as possible. But if your savings are rapidly running out, that’s a plan you might need to rethink.
This especially holds true today. The stock market has reacted strongly to recent tariff policies, and a lot of people’s portfolios are down.
It may be a bad time to cash out investments for income, since you may be looking at locking in losses. So for the sake of preserving your nest egg and not having it run out, you may want to claim Social Security immediately if you need the money to cover your bills.
3. Your household needs income and you’re the lower earner
Whether you’re working or not, you may be in a situation where you need a boost to your household income. Maybe you’re dealing with expensive medical bills. Or maybe your home is in desperate need of repairs you can’t put off any longer.
If you have a spouse who’s also eligible for Social Security, but you’re the lower earner of the two of you, then it makes sense for you to file earlier. The reason is that your benefit will take less of a hit than your spouse’s.
Say you and your spouse are both 62 years old with a full retirement age of 67. Your benefit may be worth $1,500 a month, while your spouse may be in line for $2,000.
If either of you files for Social Security now, you’ll shrink your monthly benefit by 30% compared to waiting until full retirement age. But for you, that means a $450 reduction. For your spouse, it means losing out on $600 a month.
Waiting to file for Social Security can often work to your advantage. But in the above situations, you may be much better off filing for benefits right away.
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