March 7, 2025

Should You Claim Social Security Now or Later?

Are You Sacrificing Your Future by Taking Social Security Too Soon?

Retirement. It's a time many of us dream about – a time to relax, enjoy hobbies, and spend more time with loved ones. But with retirement come important financial decisions ¹, and one of the biggest is when to start claiming Social Security benefits. While you can start as early as age 62, is that always the wisest choice? Could claiming those benefits too soon jeopardize your financial future? The question remains: Should you claim Social Security now or later?

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In this blog post, we'll explore the financial and faith-based implications of taking Social Security early. We'll delve into the claiming options, weigh the pros and cons, and consider how our Christian values should inform this crucial decision.

Understanding Social Security Claiming Options

The Social Security Administration (SSA) offers retirement benefits to eligible individuals based on their work history and the age they choose to start receiving benefits. Here's a breakdown of the key claiming ages:

Claiming Age	Description	Benefit Impact
Early Retirement	You can start claiming as early as age 62.	Doing so will result in a permanent reduction in your monthly benefit amount².
Full Retirement Age (FRA)	This is the age at which you are entitled to receive your full, unreduced benefit amount. FRA varies depending on your birth year. If you were born between 1943 and 1954, your FRA is 66. For those born between 1955 and 1959, the FRA increases by two months for each year of birth after 1954. If you were born in 1960 or later, your FRA is 67⁴.	You will receive 100% of the benefit you are entitled to based on your earnings record.
Delayed Retirement	You can delay claiming benefits beyond your FRA, up to age 70.	For each year of delay past FRA, up to age 70, your benefit amount increases by 8%⁵.

Social Security and Spousal Benefits

Social Security also offers benefits to spouses of eligible individuals. If you're married, your spouse may be eligible for spousal benefits based on your work record, even if they have limited or no work history of their own¹.

One important strategy for married couples to consider is the "restricted application" for spousal benefits. This option allows a spouse who is eligible for their own retirement benefit to file a restricted application for spousal benefits only, while delaying their own retirement benefit until age 70 to maximize its value¹. This can provide a valuable source of income for the couple while allowing the higher-earning spouse's benefit to grow.

Social Security and Survivor Benefits

In the unfortunate event of the death of a spouse, Social Security provides survivor benefits to eligible family members. These benefits are calculated based on the deceased worker's earnings record and can provide crucial financial support to surviving spouses, children, or even dependent parents¹.

It's important to understand how survivor benefits are calculated and how they might factor into your overall retirement planning, especially if you are the higher-earning spouse in your household.

Financial Implications of Claiming Early

While the desire to start receiving those monthly Social Security checks as soon as possible is understandable, it's essential to carefully weigh the financial implications of claiming early.

Reduced Monthly Payments: The most immediate consequence of claiming early is a permanent reduction in your monthly benefit amount. This reduction can be as high as 30% if you claim at 62 when your FRA is 67². For example, if your estimated benefit at FRA is $2,000 per month, claiming at 62 could reduce your benefit to $1,400 per month – a difference of $600 each month³! This means less money to cover your living expenses, potentially impacting your financial security in the long run.

Missing Out on Future Growth: Delaying Social Security allows your benefits to grow significantly. Those delayed retirement credits can add up, resulting in a much larger monthly check in the future⁶. In fact, delaying your benefits can be seen as an investment with a guaranteed return – an 8% annual increase for each year you delay past your FRA, up to age 70⁵. Where else can you find a guaranteed 8% return in today's economic climate?

Risk of Outliving Your Savings: Starting Social Security early might seem like a good idea if you need immediate income, but it could increase the risk of depleting your retirement savings too quickly⁶. With a reduced monthly benefit, your savings might not last as long as you need them to, especially with increasing healthcare costs and potential long-term care needs.

Making an Informed Decision

The decision of when to claim Social Security is a personal one, and there's no one-size-fits-all answer. However, by carefully considering the financial implications and seeking God's guidance, you can make an informed choice that aligns with your individual circumstances and Christian values.

Here are some questions to consider as you weigh your options:

What are your financial needs and resources? Do you have sufficient savings and investments to support yourself without relying heavily on Social Security?
What is your health status and family longevity? Do you have any health concerns that might affect your life expectancy? Does your family have a history of longevity?
What are your retirement goals? Do you plan to continue working part-time, travel, or pursue other activities that might require additional income?
How does claiming early align with your Christian values? Are you being a good steward of your resources and trusting in God's provision?

A Christian Perspective on Social Security

As Christians, our financial decisions should be guided by biblical principles and a commitment to stewardship. Social Security is a program designed to provide a safety net for those in retirement, but it's not intended to be the sole source of retirement income⁴. As Christian stewards, we are called to be responsible for our own needs and make wise financial decisions that align with our faith and values.

Planning for the Future: Proverbs 16:3 tells us to "Commit to the Lord whatever you do, and he will establish your plans." This verse encourages us to seek God's guidance in our financial planning, including when to claim Social Security. We should consider our long-term needs and make wise choices that align with our faith and values⁷.

Stewardship and the Common Good: The concept of stewardship calls us to take care of the resources God has given us, including our finances⁸. When considering Social Security, we should think not only of our own needs but also of the common good and the long-term sustainability of the program.

Work, Retirement, and God's Purpose: While Social Security provides for retirement, the Bible doesn't necessarily advocate for complete cessation of work⁹. Even in retirement, we can continue to serve God and others, using our time, talents, and resources for His purposes.

Taking Care of Our Needs: While Social Security provides a safety net, we are also called to be responsible for our own needs and those of our families. 1 Timothy 5:8 states, "Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever." This verse emphasizes the importance of planning for our future and ensuring we have the resources to meet our needs without solely relying on government assistance¹⁰.

Trusting in God's Provision: Ultimately, our security rests not in Social Security or any earthly provision, but in God's faithfulness. Proverbs 3:5-6 reminds us to "Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight." As we make financial decisions, we should seek God's wisdom and trust in His provision for our needs¹¹.

Conclusion

The decision of when to claim Social Security is a deeply personal one, intertwined with both financial realities and spiritual considerations. While the immediate gratification of receiving benefits early may seem appealing, it's crucial to weigh the potential long-term consequences. As Christian stewards, we are called to exercise wisdom, planning for our future while trusting in God's provision. By considering our individual circumstances, seeking godly counsel, and praying for discernment, we can make a choice that honors God, provides for our needs, and allows us to live out our purpose in retirement.

Works cited

Deciding When to Claim Social Security - SOA, accessed February 26, 2025, https://www.soa.org/globalassets/assets/Files/Research/research-pen-deciding-ss.pdf
Guide on Taking Social Security: 62 vs. 67 vs. 70 | Charles Schwab, accessed February 26, 2025, https://www.schwab.com/learn/story/guide-on-taking-social-security
How Does Early Retirement Affect Social Security? - SmartAsset, accessed February 26, 2025, https://smartasset.com/retirement/does-early-retirement-affect-social-security
Determining The Best Age to Collect Social Security (for You) - Merrill Lynch, accessed February 26, 2025, https://www.ml.com/articles/social-security-aiming-for-smarter-payments.html
The pros and cons of delaying Social Security - Journal of Accountancy, accessed February 26, 2025, https://www.journalofaccountancy.com/news/2022/mar/the-pros-cons-delaying-social-security.html
Taking Social Security Early? Reasons To Consider (With Pros & Cons) - Thrivent, accessed February 26, 2025, https://www.thrivent.com/insights/social-security/taking-social-security-early-reasons-to-consider-with-pros-cons
The Top Bible Verses about Plans in Scripture, accessed February 26, 2025, https://www.biblestudytools.com/topical-verses/bible-verses-about-plans/
Social Security, Stewardship, and the Common Good - Christian Scholar's Review, accessed February 26, 2025, https://christianscholars.com/social-security-stewardship-and-the-common-good/
Living and Giving During Retirement - Christian Stewardship Network, accessed February 26, 2025, https://www.christianstewardshipnetwork.com/blog/2022/5/12/living-and-giving-during-retirement
14 Verses About Helping Those in Need - Oliver Gospel, accessed February 26, 2025, https://www.olivergospel.org/post/14-verses-about-helping-those-in-need
14 Best Bible Verses About the Future - Encouraging Scripture, accessed February 26, 2025, https://www.biblestudytools.com/topical-verses/bible-verses-about-the-future/

Ralph V. Estep, Jr.

Christian Financial Consulting

Ralph V. Estep, Jr. is a highly accomplished professional with a diverse background in finance, accounting, technology, and entrepreneurship. As the principal at Saggio Management Group, Inc., he has demonstrated exceptional leadership and expertise in various roles throughout his career.

Ralph's educational journey began at St. Mark's High School in Newark, Delaware before attending the University of Nebraska where he was an esteemed member of the Cornhusker Marching Band and had the privilege of performing at the Florida Citrus Bowl in Orlando.

Continuing his pursuit of knowledge and excellence, Ralph earned a Bachelor of Science Degree in Accounting from the University of Delaware. He further expanded his academic achievements by obtaining a Master's in Business Administration from Wilmington University.

Throughout his professional journey, Ralph has been recognized for his outstanding accomplishments and commitment to excellence. He is a member of prestigious organizations such as the Golden Key National Honor Society and Beta Gamma Sigma International Business Honor Society.

With an extensive range of professional designations including Licensed Public Accountant (LPA), Accredited Business Accountant (ABA), Accredited Tax Advisor (ATA), Accredited Tax Preparer (ATP), and Internal Revenue Service Registered Tax Preparer (RTRP), Ralph possesses comprehensive expertise in tax preparation and financial management.

Beyond his impressive qualifications, Ralph has actively engaged with various community programs as bo… Read More

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