Choosing when to start Social Security is one of the most consequential decisions federal employees make in retirement, and it can't be undone once it's set in motion. Claiming at 62 results in a permanent reduction of around 30%, while waiting past full retirement age increases the benefit by about 8% a year, up to age 70. The right age depends on health, other income, and whether you're still working, and the decision stacks on top of a FERS pension, so it affects more than one income source.
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A lot of people think claiming Social Security is just something that happens when you retire. It's not. It's a decision. And the age you pick impacts your financial picture for the rest of your life.
Here's how the timing works. You can claim as early as 62, or you can wait. Full retirement age is 67 for almost everyone working today. If you claim at 62, you take a permanent cut of around 30% less every month for good. If you wait past your full retirement age, your benefit grows by about 8% a year all the way up until age 70. After 70, there's no additional bonus for waiting. That's the ceiling.
You've probably heard that waiting as long as possible is the smart move, and for some people, it is. But it's not automatically the right answer for everyone. Claiming earlier can make real sense if you have to start pulling more from retirement accounts to make ends meet. In fact, in some cases, it can actually net you more in the long run.
The right age genuinely depends on your situation, your health, your finances, and whether you're still working. And if you're a federal retiree, there's one more piece. Your Social Security doesn't stand alone. It stacks on top of your pension. So the timing question isn't just about Social Security in isolation. It's about how that decision fits with everything else you've got coming in.
There's no single right answer here, just the right answer for your situation. If you want help figuring out the timing that actually fits your retirement plan, talk to one of our advisors. We'll walk through it with you.
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