Nearly everyone we talk to wants to know when is the ideal time to take Social Security, and that’s a natural question because they’ve been paying into it for a very long time. Clients not only want to start getting that money out but want to do it in the most efficient way so they can maximize their benefit.

Making the decision about when to start taking Social Security benefits is one of the most crucial financial choices you’ll face as you approach retirement. In this episode of the Money Wisdom podcast, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® take you through the process for making this decision and how we approach it with our clients.

Jake and Nick stress that deciding when to take Social Security isn’t something you should do on a whim. “You can’t just make this willy nilly decision,” says Jake. The timing of your Social Security benefits can significantly impact your financial well-being in retirement, and it’s essential to consider various factors such as life expectancy, marital status, and other income sources.

Everyone’s situation is unique, and the optimal time to start taking Social Security will vary from person to person. Everyone is coming at the Social Security decision from different perspectives. Health, life expectancy, and marital status are just a few of the factors that can influence your decision. For example, if you have a family history of longevity, it might make sense to delay taking benefits to maximize your monthly payout.

One of the key concepts we often discuss with clients is the break-even point—the age at which the total benefits received from taking Social Security early equal the total benefits received from taking it later. For most people, the break-even point is in their early to mid-eighties, which means that if you live beyond this age, you would have been better off delaying your benefits.

While the idea of maximizing your Social Security benefits is appealing, you’ll want to consider the broader picture. “If you can tell us the day you’re going to die, we can tell you the best way to file to get the most amount of money out,” Jake jokes. In reality, the decision should be based on your overall financial plan, including other income sources and assets.

To aid in this decision-making process, Johnson Brunetti offers a helpful booklet on Social Security decisions. You can get your hands on this resource by texting the word “social” to 800-757-0436. This booklet can provide you with the information you need to make an educated choice about when to start taking your benefits.

Here’s some of what we discuss in this episode:

• The key ages for Social Security.

• The viability of the system and the benefits.

• One of the biggest questions we get asked is about break-even points.

• Why taking them sooner might allow you to enjoy the money and continue to grow your assets for your heirs.

• The other factors that play into your decision.