When Should I Take Social Security? A Guide for Phoenix-Area Retirees

If there's one question I get more than almost any other, it's this: "When should I take Social Security?"

It sounds like a simple question. It isn't. The answer depends on your health, your other income sources, whether you're married, and what your broader retirement plan looks like. But I can walk you through the framework I use with clients — because getting this decision right can mean tens of thousands of dollars over the course of your retirement.

The basics: what your options actually are

You can claim Social Security as early as age 62, or as late as age 70. Every month you wait between those two bookmarks, your benefit grows. The "full retirement age" — the point at which you receive your full calculated benefit — is 67 for most people retiring today.

Here's what the math looks like in rough terms:

• Claim at 62, and your benefit is reduced by about 30% permanently compared to your full retirement age benefit.

• Claim at 67, and you receive your full benefit.

• Claim at 70, and your benefit is roughly 24% higher than it would have been at 67 — and that increase is permanent.

That gap is significant. For someone whose full retirement age benefit is $2,500 per month, the difference between claiming at 62 versus 70 is roughly $1,500 per month — every month, for the rest of their life.

So why would anyone claim early?

That's a fair question, and there are legitimate reasons. If you have serious health concerns and don't expect to live into your mid-80s, claiming earlier often makes mathematical sense. If you've stopped working and genuinely need the income at 62, waiting may not be realistic. And there are certain spousal benefit situations where claiming early makes strategic sense as part of a coordinated household strategy.

The break-even point for most people — the age at which delaying to 70 starts to pay off compared to claiming at 62 — is typically somewhere in the early-to-mid 80s. If you have reason to believe you won't reach that age, early claiming deserves a serious look. If you're in good health and your family tends toward longevity, the calculus usually points toward waiting.

The case for waiting, especially if you're still working

One thing I want to flag for anyone still working in their early 60s: if you claim Social Security before your full retirement age while still earning income, your benefit can be temporarily reduced. The earnings test applies — you lose $1 in benefits for every $2 you earn above a certain threshold (in 2026, that threshold is $22,320 for those below full retirement age). That money isn't gone forever, but it does complicate the picture and can catch people off guard.

If you're still working anddon't need the income, waiting may often be the cleaner choice.

Married couples: this gets more interesting

For married couples, the Social Security decision isn't just about one person — it's a household strategy. The higher earner's benefit becomes the survivor benefit when one spouse passes away. That means the decision about when the higher earner claims has lifelong implications for the surviving spouse.

I often see couples leave significant money on the table by both claiming early without thinking through what happens when one of them is gone. A coordinated claiming strategy — where the higher earner delays as long as possible while the lower earner claims earlier — can meaningfully improve lifetime household income and provide stronger protection for the surviving spouse.

What this means for Phoenix-area retirees specifically

Arizona doesn't tax Social Security benefits at the state level, which is a genuine advantage over states like Minnesota or Colorado that do. That means the full federal benefit flows through with no additional state haircut — making the decision about when to claim even more impactful, because you're keeping more of every dollar.

That said, Social Security can still be taxable at the federal level — up to 85% of your benefit may be included in your taxable income depending on your overall income in retirement. This is one reason why proactive tax planning in the years before and after you claim matters so much.

My honest take

For most of the clients I work with — people in their late 50s and early 60s who are in reasonably good health and have other assets to draw from — waiting to claim Social Security, ideally to 70 or close to it, tends to produce better lifetime outcomes. It's the one source of guaranteed, inflation-adjusted, lifelong income you have access to, and the longer you wait, the larger that floor becomes.

But I want to be clear: this is a decision that deserves a real analysis of your specific situation. The right answer for you depends on your health, your spouse's situation, your other income sources, your tax picture, and what your retirement looks like. I've sat across the table from clients where the right answer was 62, and others where it was clearly 70. There's no universal rule.

If you're getting close to this decision and want to think through it carefully, that's exactly the kind of conversation I'm glad to have.

Disclosure

The content of this post is for educational purposes only and should not be construed as personalized financial, tax, or legal advice. This is not an offer to buy or sell securities. No investment process is free of risk and there is no guarantee that the investment process described herein will be profitable. Investors may lose all of their investments. Past performance is not indicative of current or future performance and is not a guarantee. Investment advice offered through IHT Wealth Management, a registered investment adviser.