Retirement Planners: Why Timing Matters More Than People Think With Social Security
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Jordan Rosenfeld
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Molly Sullivan
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Figuring out when to claim Social Security is often treated as a one-time box to check on the path to retirement. In reality, planners say it’s one of the most consequential financial decisions retirees make. It’s also one that becomes harder to reverse the longer it goes unexamined.
Retirement planners explained the ins and outs of Social Security timing.
Social Security Timing May Feel More Complicated in 2026
Retirees heading into 2026 are facing a mix of modest cost-of-living adjustment (COLA) increases and rising expenses, especially healthcare. Advisors said this environment makes Social Security timing decisions more consequential than many people expect.
The 2026 COLA is just 2.8%, which may be underwhelming for some, especially those analyzing their Medicare costs for next year, noted Chris Dixon, co-founder at Oxford Advisory Group. “For most retirees, [the COLA] may get swallowed up in inflation,” Dixon said.
That COLA also won’t make much of a dent in the cost of Medicare Part B, “which is set to rise 9.7%, making the plans a bit more costly for those on a strict budget,” he added.
It’s Difficult To Determine Longevity
The real timing issue at hand, however, is when to claim your benefits, which requires thoughtful consideration about life expectancy, according to Scott R. Maibor, managing director of Senior Benefits Boston and a registered Social Security analyst.
Life expectancy can go two ways — not planning for a longer life expectancy or, Maibor said, “Health status could lower the number of working years available and also lower life expectancy.”
Moreover, Social Security timing mistakes can permanently reduce retirement income by sizable numbers over a typical retirement, Maibor stressed.
Stuart Canzeri, managing partner at Peachtree Financial Group, echoed this, saying he’s seen claiming at the wrong time cost a family anywhere between $9,000 and $15,000 annually. “Multiply that over 20 years and that’s a quarter of a million-dollar mistake.”
The Case for Delaying — Up to a Point
Delaying benefits is the oft-given advice from planners, and it can result in potentially adding hundreds of thousands of dollars [to one’s income], Dixon said, “but only if the recipient lives past the break-even point.”
However, there’s also such a thing as delaying too long, past full retirement age, Canzeri warned. “For example, I’ve had clients who thought waiting until 70 to start their benefit was the best option because of the higher payout, but they didn’t consider the pressure it could have on their long-term retirement income plan.”
When Claiming Social Security Early Can Make Sense
Despite the common advice to delay, planners said there are legitimate scenarios where claiming early is financially rational.
For those who have a reason to believe they may not make it past age 80, Dixon suggested filing early may actually result in a higher total received benefit.
Claiming earlier can also free up money to pay down any outstanding high-interest debt, which could otherwise impinge cash flow, Maibor pointed out.
And of course, for those who are in a low-income or limited cash flow situation, they may simply be unable to afford waiting and must accept the lower amount to live on that income today, Dixon said.
Taxes Can Complicate Social Security Timing
Another factor that plays into timing is tax planning. Taxes are also often overlooked in claiming decisions, particularly by middle-income households that don’t expect to owe much in retirement.
“In many states Social Security is taxable above a certain income threshold and that may be far lower than most people would expect,” Maibor said.
However, it comes down to a “balancing act between immediate income needs, maximizing benefits and taxes,” Dixon said.
Consulting with a retirement tax planner is critical before making any decisions.
Spousal and Survivor Benefits Change the Math
Social Security timing decisions don’t just affect the person claiming benefits, but spouses too. For couples, especially those with uneven earnings histories, one spouse’s claiming timing can have an impact on the other’s long-term income and survivor benefits.
“If the older, higher-earning spouse, typically the male, delays, the surviving spouse benefits by a having a higher survivor benefit, it may make sense for the younger spouse to not delay claiming and allow the other benefit to grow,” Maibor said.
Canzeri added that these decisions can’t be made in isolation. “The key to this is first analyzing the optimal claiming strategy based on the client’s current financial situation,” he said. “Factors such as working status, spousal age differences and tax situation all have a big impact.”
What Future Retirees Should Do Before Claiming
Experts said the most expensive Social Security mistakes often happen years before benefits start, when retirees fail to model scenarios or verify records.
Maibor recommended retirees set up a My Social Security account to confirm that the earnings record is complete and accurate to start.
Canzeri urged having a retirement income plan that includes Roth conversions, Social Security claiming strategies and the impact of required minimum distributions on their retirement assets.
Timing matters because, “Social Security is often the foundation of a retirement income plan,” Dixon said. And once you lock in your benefits, there’s no going back.
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