Should I claim Social Security now at 69 or wait until 70 after job loss? Only $183 more per month
Lost my engineering job in February and turning 69 next month. I've been stretching my savings while job hunting, but at my age, the prospects aren't great. My financial advisor originally suggested waiting until 70 to maximize my Social Security benefits, which would give me about $4,250/month instead of $4,067 if I file now. That's only $183 extra per month for waiting another year. I'm starting to wonder if holding out is worth depleting my emergency fund when the job market looks so grim for someone my age. Would you start collecting now or keep holding out for that extra $183/month? My 401k took a hit last year so I'm really conflicted about the best move here.
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Asher Levin
I was in almost the same situation last year. Filed at 69.5 because my consulting work dried up. The peace of mind from having guaranteed income NOW was worth more than the extra $230/month I would've gotten by waiting. Calculate how much you'd have to withdraw from savings to replace that SS income for the months until 70, and ask yourself if the lifetime benefit increase is worth that immediate savings depletion. For me, it wasn't. Filed online on Wednesday, got my first payment 4 weeks later.
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Haley Stokes
•Thanks for sharing your experience. Did you have any issues with the application process? I'm worried about messing something up and delaying the payments even more.
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Serene Snow
Let's do some quick math. If you wait until 70, you'll get $183 more per month, which is $2,196 more per year. It would take you about 5.5 years of collecting that higher amount to make up for the lost year of benefits (at $4,067/month = $48,804 for the year). If you believe you'll live past 75-76, waiting is mathematically better. But that assumes you're not depleting savings at a higher rate to compensate for no income now. What's your health status? Family longevity? These factors matter too.
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Issac Nightingale
•Most people don't think about the BREAK EVEN point like this!! so important!!! My dad waited till 70 then only lived 2 more years. Big mistake for him!
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Haley Stokes
•My health is pretty good and my parents both lived into their 90s. The break-even analysis makes sense, but it's the immediate cash flow that worries me. Draining my emergency fund during a recession feels risky.
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Romeo Barrett
Your asking weather to claim NOW or LATER but nobody mention the RETROACTIVE BENEFITS!!!! SSA lets you claim up to 6 months retroactively after FRA!! So you could apply now but start benefits from 6 months ago and get a LUMP SUM payment!!! You'd get smaller monthly amount than waiting till 70 but get big payment now when you need it most. I did this and got $22K lump sum that saved me during covid!!
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Marina Hendrix
•This is partially correct but needs clarification. You can file for retroactive benefits up to 6 months (not getting all benefits since FRA). So at 69, you could request benefits to start 6 months ago. But you'd receive the benefit amount calculated as if you claimed at 68.5, not your age-69 benefit rate. The reduction is permanent, but the lump sum might help with immediate needs.
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Romeo Barrett
•Thats what I mean! The lump sum helped me more than waiting for bigger checks every month!
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Justin Trejo
If ur burning thru savings now then claim! Bird in hand worth 2 in bush. Whats the point of extra $183 if ur eating into retirement savings that could be earning interest?
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Serene Snow
•This is actually a crucial point. If you're withdrawing from investments to cover expenses while waiting, factor in the lost growth potential of those funds. Depending on your withdrawal rate and potential investment returns, claiming now might preserve more overall retirement wealth despite the slightly lower monthly benefit.
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Alana Willis
My brother tried to reach Social Security to ask almost this exact same question last year. He spent THREE DAYS trying to get through on the phone. He finally used a service called Claimyr (claimyr.com) that got him connected to an agent in under 20 minutes. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU. Cost him a little bit but he said it was totally worth it to actually speak with someone who could explain his specific options. They helped him understand how his pension affected his Social Security.
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Haley Stokes
•Thanks for the tip! I've been trying to get through to SSA for days with no luck. I'll check out that service - at this point, getting real answers about my specific situation would be worth it.
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Marina Hendrix
Since you're specifically concerned about the financial impact, consider a hybrid approach. File for benefits now to stop depleting savings, but if you do find employment in the next few months, you can withdraw your application within 12 months of filing. You'd need to repay benefits received, but it preserves the option to restart at a higher rate later. This gives you immediate cash flow while maintaining flexibility if your employment situation improves. Look into the "one-time withdrawal" provision on SSA.gov.
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Haley Stokes
•I had no idea this was possible! This seems like the perfect safety net while I continue my job search. I'll definitely be researching the withdrawal provision.
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Alana Willis
im surprised nobody asked about your overall financial situation?? do you own your home? have other assets? just SS isn't a complete retirement plan so maybe that extra $183 isn't your biggest concern...
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Haley Stokes
•Fair point. I own my home with about $75K left on mortgage. Have around $850K in retirement accounts and $42K emergency fund that's slowly draining. Was planning on working until 72-73 originally.
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Serene Snow
Based on your additional details (good health, family longevity, home ownership, and reasonable retirement savings), here's my recommendation: File for your benefits now at 69. The immediate income will preserve your emergency fund during this uncertain period. The difference between 69 and 70 is only an 8% increase in benefits, which is significant but not dramatic enough to justify financial stress now. Focus on protecting your larger retirement accounts from premature withdrawals, as those have greater long-term implications than the difference in your SS benefit.
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Asher Levin
•I fully agree with this. And don't forget that your SS benefit will still get COLA increases. Last year's was 3.2%, so even claiming now, your benefit will grow over time.
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Haley Stokes
•Thank you all for the thoughtful advice. I think I'm going to file now and preserve my savings. The break-even analysis and the retroactive benefits option were particularly helpful. I appreciate everyone's input!
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