One of the most common pieces of retirement advice is to delay claiming Social Security until age 70. It’s easy to understand why: every year you wait beyond your Full Retirement Age (up to age 70), your monthly benefit increases through delayed retirement credits. If your goal is simply to receive the largest monthly check possible, waiting is often the right move.

But here’s the catch: maximizing your Social Security benefit isn’t necessarily the same thing as maximizing your retirement.

The reality is that Social Security should never be viewed in isolation. Instead, it should be coordinated with your investment portfolio, tax strategy, retirement income needs, and estate planning objectives. When all these factors are considered together, the “best” claiming age often looks very different than conventional wisdom suggests.

For many retirees, claiming benefits earlier can reduce the amount that must be withdrawn from investment accounts during the early years of retirement. Lower withdrawal rates can significantly reduce sequence-of-returns risk—the danger of experiencing poor market performance while simultaneously drawing heavily from your portfolio. Preserving more of your investments during market downturns can have a meaningful impact on the longevity of your retirement assets.

Taxes also deserve a seat at the table. Social Security benefits don’t exist in a vacuum. Traditional IRA and 401(k) withdrawals, pension income, capital gains, and Social Security all interact to determine your taxable income. In some situations, delaying Social Security while living on larger retirement account withdrawals may make sense—especially if it creates an opportunity for Roth conversions during lower-income years. In others, claiming earlier may help smooth taxable income over retirement, potentially reducing lifetime taxes, minimizing Required Minimum Distribution (RMD) issues later in life, or helping avoid higher Medicare Part B and Part D premiums through IRMAA surcharges.

Then there’s the human element—one that spreadsheets can’t always capture.

A dollar received at age 62 or 65 often has a different value than the same dollar received at age 80. Early in retirement, many people are healthier, more active, and more likely to travel, pursue hobbies, spoil grandchildren, or simply enjoy experiences they’ve spent decades working toward. While longevity is an important planning assumption, retirement planning is about funding your life—not simply maximizing lifetime government benefits.

This is where breakeven analysis also becomes important. Many discussions focus solely on the age at which cumulative lifetime benefits become equal under different claiming strategies. While that’s a useful data point, it shouldn’t drive the decision by itself. A comprehensive analysis also considers investment returns, withdrawal rates, tax implications, survivor benefits, healthcare costs, and your personal goals.

None of this means claiming early is always the right answer. For individuals with excellent health, significant longevity in the family, or a spouse who would benefit from a larger survivor benefit, delaying benefits may absolutely be the optimal strategy.

The key takeaway is simple: there is no universally “correct” age to claim Social Security. The right decision is the one that maximizes your overall retirement plan—not just your monthly benefit.

If you’re approaching retirement and wondering when you should claim Social Security, we’d be happy to help. At Alhambra, we evaluate Social Security as part of a comprehensive retirement income strategy, incorporating taxes, investment withdrawals, Roth conversion opportunities, Medicare premiums, and long-term cash flow projections. Before making an irreversible claiming decision, let’s have a conversation and determine what strategy is truly optimal for your retirement.