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Retirement

Can claiming Social Security early pay off?

Evaluate your retirement options with our list of top three reasons for taking Social Security early. Insightful advice for those nearing retirement age.
4 minute read   •   August 11, 2025
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Choosing when to claim your Social Security benefits is an important decision that determines the monthly benefits you'll receive for the rest of your life. Conventional wisdom suggests you should wait to claim until age 70 to increase longevity protection or maximize your wealth. However, recent Vanguard research, Claiming Social Security early: A spectrum of breakeven and longevity risks (PDF), has offered a new perspective.

Here's a quick guide to help you determine if an early claiming strategy might be right for you:

Who might benefit from early claiming?

  • Ultra-high-net-worth investors. If you spend a small portion of your portfolio and aren't at risk of running out, claiming early could be a smart move. It can help you enjoy your benefits sooner, keep more assets invested, and potentially leave more to your loved ones or the causes you care about.
  • Minimal spenders. If a smaller Social Security benefit could help you cover small, predictable expenses, claiming earlier might give you more flexibility and peace of mind.
  • Pension holders. If your pension covers all your needs, you might benefit from claiming Social Security early. This can help you preserve your other assets and reduce the need to withdraw from your investment portfolio.
  • People with a shorter life expectancy. If you expect to have a shorter life, claiming early can help you get the most out of your benefits. It's important to consider relevant factors, like your personal health and family history, when making this decision.

"When someone is spending only a small portion of their portfolio, their concern should shift from outliving their assets—longevity risk—to passing earlier than anticipated, which creates a need to identify their breakeven point," said James M. Passman, wealth planning methodology analyst at Vanguard and lead author of the research note. "For these people, the top priority might be to leave as much as possible to a loved one or cherished cause."

What are some advantages of claiming early? 

Decreased withdrawals

Claiming early can help reduce the amount you need to withdraw from your investment portfolio in the early years of retirement, particularly in the near and middle term, which can be particularly beneficial if you hope to leave an inheritance.

Tax and Medicare benefits

Claiming early can help spread out your tax burden over more years. If your situation benefits from this smoothing, your income taxes and Medicare surcharges may be reduced.

Psychological value

Having that extra money sooner can provide a sense of security and peace of mind. Although this mindset doesn't always lead to maximizing your wealth, having immediate access to funds can make a big difference for some retirees.

What are some disadvantages to early claiming?

For many investors, claiming Social Security early may not be the best strategy. Here are several reasons you may want to delay claiming your benefits:

Higher benefit amount

As an example, if you were born after January 1, 1960, and waited to claim until full retirement age—up to age 70—your monthly benefit amount would increase by 24%, while claiming at age 62 would reduce your benefit by 30%.1 So, claiming later provides a greater opportunity to maximize your lifetime benefits.

Greater longevity protection

If you expect to live a long life, it often makes sense to delay claiming so you'll be able to count on that income in your later years. If you're in good health, female, or both, you're statistically more likely to benefit from later claiming.2

Higher survivor benefit

If you're married and the higher earner in the household, you may want to consider claiming later. This could enable your spouse to retain the higher benefit amount if you predecease them.


Your Social Security claiming strategy is a highly personal decision. You should carefully consider your options based on your circumstances, lifestyle choices, personal health, life expectancy, expected cash flows, and the understanding that your future needs and wants may differ from today's. If you'd like assistance with your claiming strategy, our wealth planning experts are here to help.3


Explore how to maximize your Social Security benefits

1Vanguard calculations, using data from the U.S. Social Security Administration. See Social Security Administration, Effect of Early or Delayed Retirement on Retirement Benefits (available at  https://www.ssa.gov/oact/ProgData/ar_drc.html).

2According to the Mortality Improvement Scale MP-2021 report of the Society of Actuaries' Retirement Plans Experience Committee, females tend to outlive males; see 2021 mp scale report (PDF).

3These services are exclusively for those enrolled in Vanguard Personal Advisor Wealth Management™.

All investing is subject to risk, including the possible loss of the money you invest.

The information contained herein does not constitute tax advice and cannot be used by any person to avoid tax penalties that may be imposed under the Internal Revenue Code. Each person should consult an independent tax advisor about their individual situation before investing in any fund or ETF/security.

Vanguard Personal Advisor does not provide tax advice and clients should consult their own legal and/or tax advisors.

Vanguard's advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.

The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI's Form CRS and each program's advisory brochure here for an overview.

VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.