Let’s talk about Social Security. It’s one of those things we all know we’ll rely on someday, but when it comes to actually making decisions about it, things get… complicated. Should you take it early? Wait until full retirement age? Or delay it as long as possible to get those bigger checks? The answer isn’t one-size-fits-all, and for some people, delaying Social Security can actually backfire.
I’ve seen it happen. Friends and family members who waited, thinking they were making the smart move, only to realize later that it wasn’t the right choice for them. And let me tell you, it’s not a fun realization. So, if you’re thinking about delaying Social Security, let’s talk about the key signs that it might not be the best move for you. Think of this as your friendly, no-judgment guide to making a decision that works for your retirement.
1. You Need the Money Now
This one’s pretty straightforward. If you’re struggling to make ends meet or dipping into your savings faster than you’d like, delaying Social Security might not be the best idea.
Example: My uncle waited until 70 to claim Social Security because he wanted the bigger checks. But in the meantime, he drained his retirement savings and had to take on part-time work to cover expenses. By the time he started receiving benefits, he wished he’d taken them earlier.
2. Your Health Isn’t Great
Social Security is designed to pay out more if you live longer. But if you have health issues or a family history of shorter lifespans, delaying might not make sense.
Example: A friend’s dad delayed Social Security, hoping to maximize his benefits. Sadly, he passed away just a few years after retiring, and all that waiting didn’t pay off.
3. You’re Not Working Anymore
If you’ve already stopped working and don’t have other sources of income, delaying Social Security could leave you in a tight spot.
Example: My neighbor retired at 62 but decided to wait until 67 to claim Social Security. Without a steady income, she had to rely on her savings, which ran out faster than she expected.
4. You Have Debt
If you’re carrying debt—especially high-interest debt—delaying Social Security might not be worth it. The interest you’re paying could outweigh the benefits of waiting.
Example: A coworker delayed Social Security to get higher payments, but in the meantime, his credit card debt ballooned. By the time he started receiving benefits, he was worse off financially.
5. You’re Not Sure You’ll Live Long Enough to Benefit
The breakeven point for delaying Social Security is usually around 80-82 years old. If you don’t expect to live that long, waiting might not pay off.
Example: My aunt waited until 70 to claim Social Security, but she passed away at 75. She would have been better off taking benefits earlier.
6. You Have a Spouse Who Depends on Your Benefits
If you’re the higher earner and your spouse will rely on your Social Security benefits after you’re gone, delaying could reduce their survivor benefits.
Example: A friend’s dad delayed Social Security, thinking it would help his wife after he passed away. But when he died unexpectedly, she was left with less than she needed. {0}
7. You’re Not Sure About the Future
Life is unpredictable. If you’re not sure what the future holds—whether it’s health, finances, or something else—delaying Social Security might not be worth the risk.
Example: My cousin waited to claim Social Security, but then the stock market took a dive, and her retirement savings took a hit. She regretted not taking the benefits earlier.
8. You’re Not Maximizing Other Retirement Income
If you have other sources of retirement income—like a pension or investments—delaying Social Security might make sense. But if you don’t, waiting could leave you short.
Example: A neighbor delayed Social Security but didn’t have much in savings or investments. By the time he started receiving benefits, he was struggling to make ends meet.
9. You’re Not Sure How Social Security Works
Social Security rules can be confusing, and if you’re not sure how they apply to your situation, delaying might not be the best move.
Example: My uncle thought delaying Social Security would automatically mean bigger checks, but he didn’t realize it would reduce his spouse’s benefits. It was a costly mistake.
10. You’re Feeling the Pressure
If the idea of delaying Social Security is causing you stress or anxiety, it might not be worth it. Your peace of mind is important too.
Example: A friend’s mom delayed Social Security because everyone told her it was the “smart” move. But the stress of not having enough money in the meantime took a toll on her health.
Final Thoughts: It’s Your Decision
Here’s the thing: there’s no right or wrong answer when it comes to Social Security. It’s about what works best for you. If delaying makes sense for your situation, great. But if it doesn’t, that’s okay too.
The key is to think carefully about your health, finances, and future plans. And if you’re not sure, talk to a financial advisor. They can help you make a decision that’s right for you.
Now go forth and make the choice that feels best for your retirement. You’ve got this. 😊