Think You're Ready to Claim Social Security? Here's the 1 Test You Should Pass First.
Think You're Ready to Claim Social Security? Here's the 1 Test You Should Pass First.
Maurie Backman, The Motley FoolWed, April 22, 2026 at 7:56 AM UTC
0
Key Points -
Your filing age helps determine what benefit Social Security pays you.
Before you start benefits, assess your financial situation.
You may realize that waiting on Social Security makes more sense.
The $23,760 Social Security bonus most retirees completely overlook ›
Once you turn 62, you're allowed to sign up for Social Security. And you may be eager to start getting those monthly checks as soon as possible.
But you should know that your filing age could play a big role in the amount of money Social Security pays you each month. So it's important to approach your claiming decision carefully. And before you file, there's one key test you need to pass.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Social Security cards.
Image source: Getty Images.
Can the benefit you're eligible for now support your lifestyle?
Once you turn 70, there's no sense in delaying your Social Security claim. That's because you won't get credit for waiting beyond that point.
But if you're eligible for Social Security and are younger than 70, before you take benefits, it's important to make sure the monthly checks you'd be locking in can support the retirement lifestyle you want.
Here's how to know if you're ready for Social Security:
Calculate your annual income needs.
Figure out how much annual income you can get from your savings and non-Social Security income streams.
Determine the difference.
If the numbers line up, you can feel confident claiming benefits. If filing now leaves you with a shortfall, it's best to wait.
Advertisement
Let's say you determine you'll need $7,500 a month, or $90,000 a year, to cover all of your retirement expenses -- both needs and wants. Let's also say you've saved $1.6 million and plan to withdraw from your savings at a rate of 4% per year, which would give you a $64,000 income.
Assuming you have no other retirement income sources, that means Social Security will have to provide you with $26,000 a year to cover all of your needs. If signing up now means locking in a monthly benefit of $2,200, you're all set. If it means only locking in $2,100 a month, you're a tiny bit short. And if it means locking in $2,000 a month, you're even more shy of your goal, which could become problematic over time.
Don't confuse "can" with "should"
Once you turn 62, you can claim Social Security at any time. But just because you're eligible to take benefits doesn't mean you should.
Waiting to file for Social Security could help you avoid an income shortfall not just in the near term but also the long term. It could also give you extra breathing room in your retirement budget for when unexpected bills inevitably rise. Think about the upside of holding off before filing your claim, even if you're convinced you're ready to start collecting benefits immediately.
The $23,760 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
View the "Social Security secrets" »
The Motley Fool has a disclosure policy.
Source: “AOL Money”
