Deciding when to start collecting Social Security benefits is one of the key decisions you’ll make in retirement. As a guaranteed source of income that’s not tied to market performance, Social Security plays an important role in your broader retirement income strategy, providing stable and predictable income for as long as you live.  

And while delaying your benefits can increase your monthly payment, waiting to begin Social Security until you receive the maximum benefit is not the right choice for everyone. Instead, you’ll want to account for a variety of personal factors and circumstances before you make your decision. 

As you navigate this question, an Ameriprise financial advisor can work with you to determine the appropriate age for you to start taking Social Security benefits. 

Here are eight factors to consider when deciding when to apply for Social Security: 

1. Your age 

To start, you’ll want to consider how the age at which you begin taking Social Security benefits will impact your monthly payment. You can begin collecting Social Security benefits when you turn 62, but you’ll receive reduced benefits if you do so. If you wait until your full retirement age, which is 66 or 67 depending on the year you were born, you’ll receive 100% of the benefits you are entitled to. And if you wait until age 70, you will receive 124% of your benefit amount.  

Learn more: Key retirement milestone ages to track 

2. Your health and life expectancy 

As you make this decision, you’ll want to account for your health, your family’s health history and your life expectancy. Is it common for your relatives to live into their 90s? Do you have any chronic health conditions that present challenges? While it may be uncomfortable to think about your mortality, it’s a factor that should influence your decision. For example, if your family history suggests that there’s a good chance you’ll live a longer life, it may be more financially beneficial to wait to collect Social Security. 

3. Your total benefit amount 

The earlier you take Social Security, the lower the monthly payment. Over time, this can translate to a reduced total benefit amount, depending on how long you live. While you can’t predict your life expectancy, you’ll want to run the numbers and compare your potential total benefit if you retire at age 63, full retirement age (66 or 67 years) and age 70. In some cases, claiming benefits early does not translate to an overall lower benefit amount. 

The below hypothetical scenario illustrates how total Social Security benefits can vary over time for two women who begin collecting at different ages. As you’ll note, it’s not until age 82 that the woman who delays Social Security accrues more total benefit. 

4. Your finances 

Beyond your Social Security benefit, you’ll want to consider your other income sources and current financial position. Overall, what does your retirement portfolio look like? Are you comfortably covering your current expenses without this additional income? If you’re healthy and don't need the income right away, it may be wise to delay your benefits to age 70, when you’ll receive the maximum amount.  

5. Your employment status 

If you’re currently employed, it may make sense to hold off drawing Social Security until you stop working. Social Security is based on your highest 35 years of earnings, meaning that working longer could increase your benefit. Further, the federal program is structured to disincentivize simultaneously working and withdrawing Social Security prior to reaching your full retirement age. If you take Social Security before you reach age 66 or 67 and earn wages over a certain amount, it may lead to a decrease in your monthly benefit. Once you reach your full retirement age, you can take Social Security and work without reducing your benefits. 

Learn more: Working after retirement 

6. Your marital status 

If you’re married or divorced, you’ll want to account for the impact that taking Social Security can have on the benefits of your spouse or ex-spouse. For example, if you and your spouse have a significant age or income gap, delaying benefits until the higher earner turns age 70 may be a smart move. This can help maximize the potential benefits for both spouses, since the higher earner's benefit won’t stop until the death of the surviving spouse. 

Learn more: Understanding Social Security survivor benefits and eligibility

7. Your taxes 

Contrary to popular belief, Social Security benefits are considered taxable income and subject to federal taxes. When deciding when to take Social Security, you’ll want to holistically review your retirement income and consider how the benefits may affect your marginal tax bracket. It’s common for the additional income to push retirees into a higher tax bracket, which can lead to an increase in the overall amount that you pay for federal taxes and your Medicare coverage.

Learn more: Social Security and taxes, explained 

8. The external environment 

Finally, you’ll want to consider what’s happening in the broader environment. As a federally administered benefit, Social Security is subject to ongoing regulatory oversight, and the program could change if Congress acts. If you’re farther away from collecting Social Security, potential changes — such as reduced payments or an increased full retirement age — are possibilities you may need to plan for should they be implemented. 

Make the most of your Social Security benefits 

Deciding when to start collecting Social Security benefits is a uniquely personal choice that will depend on a variety of factors. An Ameriprise financial advisor can help you consider the financial risks and benefits before taking Social Security and create a sustainable retirement income strategy tailored to your needs.