Conventional advice tells retirees to delay Social Security as long as possible. But for many, that strategy might not be ideal—especially when you consider retirement planning, tax implications, and real-world psychological factors.
In this post, we’re walking through a real scenario: a client with $1.5 million saved for retirement who still decided to claim Social Security at age 62. It’s a move that may seem counterintuitive, but it can make a lot of sense depending on your full financial picture.
Let’s break down why.
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One of the strongest arguments for claiming Social Security early—even with a sizable nest egg—is to reduce reliance on portfolio withdrawals.
During the early years of retirement, market volatility can severely impact your long-term outcomes. This is known as sequence of returns risk. If the market drops while you're simultaneously drawing from your investments, your portfolio may never recover to its full potential.
By starting Social Security at 62, you're creating a guaranteed monthly income stream that acts like a risk-management tool. It reduces pressure on your investments, especially in years when markets are underperforming. For many, that peace of mind and portfolio protection outweigh the benefit of waiting for a larger check.
Another key reason to consider claiming early is the simple fact that life expectancy is uncertain.
The so-called “break-even age” is typically between 78 and 80—the point at which delaying Social Security would result in more cumulative benefits than claiming early. But what if you don’t live that long?
For people with health issues or a family history of shorter life expectancy, claiming early ensures they get value from the system they paid into their entire working life. It also removes the risk of a worst-case scenario—dying before ever receiving a single check.
There's something powerful about a guaranteed paycheck hitting your bank account each month—especially when it isn’t tied to the fluctuations of an investment account.
Yes, you can set up scheduled withdrawals from your IRA or 401(k), but those accounts have visible balances that go up and down with the market. That volatility can create anxiety. With Social Security, it’s just income. It shows up, no matter what’s happening on Wall Street.
This “psychological paycheck effect” provides emotional stability and confidence, allowing you to spend more comfortably in retirement without constantly worrying about whether your investments are going to last.
For married couples, coordinating when each spouse claims Social Security is one of the most impactful retirement planning decisions they’ll make.
Often, it makes sense for the higher earner to delay benefits to maximize the survivor benefit. But in the meantime, the lower-earning spouse may benefit from claiming early. That early claim provides income today, while still preserving the larger survivor benefit for later.
This approach ensures that if the higher earner passes away, the surviving spouse isn’t left with significantly reduced income.
A common reason to delay Social Security is to create a window for Roth conversions—typically between retirement and age 70—when earned income is low, and you can convert traditional retirement accounts to Roth IRAs at favorable tax rates.
But what if Roth conversions aren’t part of your strategy?
If most of your retirement savings are already in Roth IRAs or taxable brokerage accounts—and you don’t expect to face big required minimum distributions (RMDs) later—then you may not benefit from that Roth window. Similarly, if you’re not worried about IRMAA surcharges or marketplace healthcare subsidies, keeping your income low isn't necessary.
In those cases, claiming early and taking the money can make more sense than delaying for a hypothetical tax benefit that doesn’t apply to your situation.
Money has utility value—it’s more useful when it helps you do things you care about.
At 62, most retirees are in their “go-go years”—more mobile, energetic, and able to enjoy the experiences they've worked so hard to afford. Delaying Social Security until 67 or 70 might give you a larger monthly check, but if your health deteriorates or your lifestyle slows down, you may not be able to enjoy it.
That $2,000/month benefit at 62 might give you more real value than a $2,500/month benefit at 70—because it helps fund the kind of retirement you want while you’re still healthy enough to enjoy it.
A lot of retirement content online says: “Always delay Social Security.” That’s just not realistic.
The truth is that the right claiming strategy is deeply personal. It depends on:
For our client with $1.5 million saved, we evaluated all these variables. Their health wasn’t perfect, they weren’t planning to do Roth conversions, and they didn’t want to be overly reliant on their portfolio. So claiming at 62 provided the best balance of income, stability, and flexibility.
To be clear, claiming at 62 isn’t the right call for everyone.
You may want to delay if:
Again, this is where a personalized retirement plan—with tax and income modeling—makes all the difference.
At Spark Wealth Advisors, we don’t believe in one-size-fits-all financial advice. That’s why we offer a free financial assessment for anyone considering working with us.
We’ll help you see how your Social Security options, retirement savings, and tax planning strategies all fit together—so you can make the smartest, most confident decision possible.
👉 Schedule Your Free Assessment
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