Contrary to popular belief, waiting to claim Social Security until age 70 to get the maximum benefit is not the best decision for everyone. So, when is the right time?

In this week’s Retire Wiser with NBC Connecticut, Joel Johnson, CFP® shares the key factors to consider when creating your ideal claiming strategy.

Consider Your Age and Health

Your age and health play a significant role in deciding when to claim Social Security. If you’re in good health and expect to live a long life in retirement, waiting until age 70 may be the right move. However, if your health or family history suggests otherwise, or if you’re concerned about your spouse outliving you, the timing becomes even more critical. In this case, you and your financial advisor might determine that collecting benefits earlier is the better choice.

Factor in Your Marital Status

Your marital status can provide additional options when determining the ideal time to take Social Security. If you’re married or divorced, you may be eligible for benefits based on your spouse’s or former spouse’s earnings. Spouses can receive up to 50% of the higher-earning spouse’s benefit, as long as the marriage lasted at least 10 years. For widows and widowers, survivor benefits allow you to collect 100% of your deceased spouse’s benefit if it’s higher than your own.

Don’t Ignore Taxes

Taxes are another factor that shouldn’t be overlooked. The reality of Social Security is that you’re likely going to pay taxes on it. Depending on your total earnings, 50% or up to 85% of your Social Security benefits may be subject to taxation.

However, with smart tax planning, you can strategically manage your other income to minimize that tax burden. Incorporating tax-efficient strategies into your financial plan can help you make the most of your benefits.

Look at the Bigger Picture

Many people underestimate the value of Social Security, but over the course of retirement, total benefits could amount to upwards of $500,000 or more. Instead of viewing Social Security as a stream of monthly payments, it’s important to treat it like the substantial asset that it is.