Three Strategies to Consider Before Claiming Social Security
Many retirees unknowingly lock in a permanent reduction in their Social Security checks by claiming too early. The average claiming age is in the mid-60s, but waiting even a few years can significantly increase lifetime income. The key question is: what’s the right time for you?
Here are three common strategies:
- Claiming Early (Age 62)
Income begins right away, but monthly benefits may be reduced by up to 30% compared to waiting until full retirement age. - Waiting Until Full Retirement Age (66–67)
Balances the need for income with the opportunity to receive your full benefit. - Delaying Until 70
Each year you wait after FRA increases benefits by about 8% up to age 70. Couples may benefit from coordinating strategies to maximize lifetime benefits. Many miss out by not doing this planning together.
Why This Matters for Foreign Service Officers
For career members of the Foreign Service, Social Security is only one piece of retirement income. The Foreign Service Pension System (FSPS) provides a lifetime annuity that can help bridge the years before Social Security begins. Coordinating both streams may change how you approach your claiming strategy.
The Spousal Benefit
In the Foreign Service, it’s common for spouses to have interrupted careers. Social Security’s spousal benefit can be worth up to 50% of your spouse’s FRA benefit. This creates planning opportunities: for instance, the lower-earning spouse may claim their own reduced benefit early to provide income, while the higher earner delays until age 70. This maximizes both their benefit and the survivor benefit available down the road.
A Little-Known Option
If you claimed early and regret it, you may still have options. Recipients at full retirement age can suspend benefits until 70, earning delayed retirement credits each month.
Explore Your Options
To make this easier, I’ve rolled out a free, self-guided Social Security analyzer. It lets you test different strategies and see how timing impacts benefits.
At Global Fiduciary Partners, we help Foreign Service Officers and globally mobile Americans decide when to claim Social Security, close income gaps, and design retirement strategies with confidence.
Disclaimer: This article is for educational purposes only and not individualized financial advice. Please consult a qualified professional before making Social Security decisions.
Sources: Social Security Administration, Annual Statistical Supplement to the Social Security Bulletin, 2019, Table 6.B5.1.