For many retirees, deciding when to begin collecting Social Security retirement benefits is one of the most significant financial decisions they will make. Although Social Security was never intended to replace your entire paycheck, it often serves as a critical source of retirement income and the age at which you begin receiving benefits can substantially affect your monthly payments, your lifetime retirement income, and your overall financial security. While there is no universal answer that works for everyone, understanding how Social Security benefits are calculated and how the timing of your retirement affects those benefits is the first step toward making an informed decision. Toward that end, the Port St. Lucie attorneys at Kulas Crawford & Smith discuss factors to consider when deciding to begin accepting Social Security retirement benefits.
Understanding How Social Security Retirement Benefits Work
The Social Security retirement system has provided income to retired American workers since 1935. Throughout your working years, you contribute to the system through payroll taxes collected under the Federal Insurance Contributions Act (FICA). Those contributions help fund retirement, disability, and survivor benefits for eligible workers and their families.
To qualify for retirement benefits, you must earn sufficient work credits during your career. Credits are earned based on your annual wages or self-employment income, and the amount required to earn a credit is adjusted periodically for inflation. For 2026, you receive one work credit for every $1,890 in covered earnings, up to a maximum of four credits each year. Most workers need forty credits, or approximately ten years of covered employment, to qualify for retirement benefits.
Once you become eligible, you generally have flexibility regarding when to begin receiving benefits. You may claim retirement benefits as early as age 62 or delay claiming until age 70. The decision regarding when to begin benefits has a direct impact on the amount you receive every month for the remainder of your life.
How Your Monthly Benefit Is Calculated
Many people assume Social Security benefits are based simply on their final salary before retirement, but the calculation is considerably more sophisticated. The Social Security Administration reviews your highest 35 years of earnings after adjusting those earnings for inflation. Your average indexed monthly earnings are then used to calculate your primary insurance amount, which serves as the foundation for your retirement benefit. If you worked fewer than 35 years, years with no earnings are included in the calculation, potentially reducing your monthly benefit. Fortunately, reviewing your projected retirement benefit has become much easier. By creating a personal online account with the Social Security Administration, you can:
- Review your complete earnings history.
- Verify your work credits.
- Estimate your retirement benefits at various claiming ages.
- Review projected disability benefits.
- Estimate survivor benefits available to your family.
What Is Your Full Retirement Age?
One of the most important concepts in retirement planning is your Full Retirement Age (FRA)which refers to the age at which you become entitled to receive your full unreduced retirement benefit. For most individuals approaching retirement today, Full Retirement Age is 67 years old. Although you may begin receiving benefits before reaching FRA, doing so permanently reduces your monthly benefit. Likewise, waiting beyond your Full Retirement Age increases the amount you receive each month until you reach 70 years old. Understanding where your Full Retirement Age falls provides an important benchmark for evaluating your retirement options.
Should You Begin Collecting Benefits at Age 62?
Age 62 is the earliest age at which most workers may begin receiving Social Security retirement benefits. While the opportunity to receive income several years earlier understandably appeals to many retirees, particularly those who have retired unexpectedly or who need additional income, beginning benefits before Full Retirement Age comes with an important tradeoff — your monthly retirement benefit is permanently reduced.
For workers whose Full Retirement Age is 67, claiming benefits at age 62 generally results in approximately a 30 percent reduction in monthly payments. That reduction continues throughout your lifetime and affects certain survivor benefits that may later become available to your spouse. Despite the reduction, claiming early may still be appropriate in some circumstances, such as:
- Your health suggests a shorter life expectancy.
- You need retirement income immediately.
- You have limited retirement savings.
- You have already stopped working.
- Your financial circumstances make delaying impractical.
What Are the Advantages of Waiting?
Although many people focus on receiving benefits as soon as possible, delaying retirement often produces substantial long-term financial advantages. If you postpone claiming Social Security after reaching your Full Retirement Age, your monthly retirement benefit generally increases through delayed retirement credits. For most retirees, these credits increase benefits by approximately eight percent each year until you reach age 70. Consequently, waiting from age 67 to 70 to start collecting benefits may increase your monthly retirement benefit by roughly 24 percent. Compared to someone who begins collecting benefits at age sixty-two, the difference can be as much as twice as much. Moreover, these larger monthly payments continue throughout retirement and receive future annual cost-of-living adjustments. For retirees who expect to live into their 80s or 90s, delaying benefits may significantly increase lifetime Social Security income while also providing greater financial stability later in retirement.
How Does Your Life Expectancy Affect the Decision?
No one knows exactly how long he or she will live, making life expectancy one of the most challenging aspects of deciding when to begin Social Security retirement benefits. In general, however, individuals who expect a longer retirement often receive greater lifetime value by delaying benefits because the higher monthly payments continue for the rest of their lives. Conversely, someone facing significant health concerns may reasonably conclude that beginning benefits earlier provides greater financial value.
Although life expectancy is impossible to predict with certainty, you should consider factors such as your current health, family medical history, lifestyle, and anticipated retirement needs before making your decision. Rather than focusing exclusively on reaching a theoretical “break-even” age, consider how different claiming strategies affect your overall retirement security throughout your later years.
Should You Continue Working While Receiving Benefits?
Many Floridians continue working after they begin receiving Social Security retirement benefits. If you claim benefits before reaching your Full Retirement Age and continue earning employment income, your benefits may be temporarily reduced if your earnings exceed the annual limit established by the Social Security Administration.
These reductions are not permanent, however, and once you reach your Full Retirement Age, your monthly benefit is recalculated to account for benefits previously withheld because of excess earnings. If you wait until reaching your Full Retirement Age before claiming benefits, you generally may continue working without having your retirement benefits reduced because of your earnings.
Can We Help You Decide When to Begin Accepting Social Security Retirement Benefits?
To learn more, please join us for an upcoming FREE seminar. If you have questions or concerns about when to begin accepting Social Security retirement benefits, please contact an experienced Port St. Lucie estate planning attorney at Kulas Crawford & Smith by calling (772) 398-0720 to schedule a consultation.
- Incapacity Planning in Your Florida Estate Plan - August 5, 2026
- Should I Include a Living Will in My Florida Estate Plan? - July 22, 2026
- When Should I Begin Accepting Social Security Retirement Benefits? - July 8, 2026