Should I start Social Security early, or should I delay?
That’s the question I get more than any other when I teach my Social Security class. No one really knows the answer for sure. Do I take it at 62? At 67? Or wait until 70?
In today’s Key to Yes, we’re going to walk through Social Security strategies—the pros, the cons, and the real-life implications.
Hi, I’m Devin Choules, founder and CEO of Choules Financial. In this week’s Key to Yes, we’ll cover how to approach Social Security in the context of a full retirement plan—because it’s not as simple as asking, “How do I get the most money?” If you told me you were going to live to 100, I could tell you mathematically to wait until 70. But we don’t know when our time is up.
That’s why we have to consider more pieces of the puzzle.
We believe Social Security is one-fifth of a retirement plan. Just one portion of your income strategy. A full retirement plan includes all five key areas: Investments, Income, Taxes, Healthcare, and Estate Planning—and how they all work together.
Social Security was designed to replace about 40% of your income in retirement—if you take it at full retirement age. That leaves the remaining 60% to be covered by your personal assets and investments.
So, the real question isn’t just “when” to take Social Security. It’s how does your decision integrate with everything else?
Do you have minimal assets and need to work longer, aiming for the biggest benefit at 70 to help you stay retired?
Do you have significant assets and a pension, making Social Security a smaller part of your overall plan?
And don’t overlook taxes. Many people don’t realize that Social Security isn’t always taxed. Depending on your filing status—single or married—it could be taxed at 0%, 50%, or up to 85% of the benefit amount. Getting this right is crucial.
A lot of advisors will just tell you, “Delay it as long as you can.” But at Choules Financial, we believe in taking a coordinated approach. Every piece of your plan affects the others.
If you have strong assets and income, you might choose to take Social Security earlier. But you also need to weigh how that decision impacts tax planning—like whether you’ll miss out on years of Roth conversions at lower tax rates, which could make a big difference down the road.
It’s all about balance.
You need a written retirement income plan that outlines:
Which account to draw from first (brokerage, 401(k), IRA, cash, etc.)
How much to draw
When to start Social Security
I’d love to be able to tell you exactly when to take it—62, 67, or 70. But the truth is, it depends.
If you think you’ll pass away at 70, it probably makes sense to claim at 62 and enjoy those years. But if you expect to live into your 90s, delaying could give you that 8% annual increase and help preserve your other assets.
So, what matters most is having a plan that fits your situation—your health, your wealth, your longevity.
That’s it for this week’s Key to Yes. Make sure to subscribe, click below, and we’ll see you next time.
