When Should I Begin Taking Social Security?

Rachel Lutzker: Welcome to today’s CT Buzz. I’m Rachel Lutzker. Do you know when you should be taking Social Security? Well, it all has to do with your personal circumstances, and that’s different for every individual. It’s an important decision that will impact your finances in retirement for the rest of your life. So, it’s definitely not a one-size-fits-all choice. Ben Fuchs, founder of Fuchs Financial, is here to talk about the many factors you should consider when making this decision and how they can assist you in the planning process to help maximize your benefits. In addition to being a certified financial planner, Ben is also a certified private wealth advisor professional. Rachel Lutzker: So Ben, what are some of the issues that people are facing when they’re trying to determine when they should start taking Social Security? Ben Fuchs: First of all, let me preface this by saying this could easily be a 30-minute or hour-long discussion. We’ve done webinars on this topic. If you want more information, you can visit our website at taxesandincome.com, where we have a full webinar on when to take Social Security. But here’s the cliff notes version. We’ll start with full retirement age. If you were born in 1954 or earlier, your full retirement age is 66. If 1960 or later, it’s 67. For every year in between, it increases by two months. Many people misunderstand full retirement age; it doesn’t mean you get all benefits—it’s the age when you can begin taking Social Security without reduction due to earned income. Most people claim benefits between 63 and 66. Only 11% wait until 70, and more than a quarter start at 62. The problem with claiming at 62 is many people are still working. In 2025, if you earn more than $23,400 a year, your Social Security benefits will be reduced—$1 for every $2 over that amount. Social Security is also taxed less than other income, so waiting can increase net benefits. Rachel Lutzker: So, is the goal to wait as long as possible? Ben Fuchs: Not always. There are scenarios where people may take it early—for example, if they don’t need the money yet or want to preserve other assets for heirs. For couples, often one spouse takes it early and the other later to maximize the surviving spouse’s benefit. We help clients with scenario-based planning, considering taxes and income. For example, having $30,000 versus $60,000 from Social Security significantly impacts taxes. Our free consultation can show these effects, even if someone chooses not to work with us afterward. Rachel Lutzker: So for more details, folks can go to taxesandincome.com and get started. Ben Fuchs: Exactly. Multiple webinars are available, or they can schedule a free phone call or one-on-one consultation. Offices are located in Middletown, West Hartford, Mbury, and Mystic. You can call 860-461-1709 to set up a complimentary consultation. Rachel Lutzker: Ben, thank you so much for joining us for today’s CT Buzz. I’m Rachel Lutzker, and we’ll see you next time.