Deciding when to claim Social Security benefits is one of the most crucial financial decisions retirees face. While 65 might seem like a logical age to start collecting, many retirees later regret not waiting for a higher payout. Here’s why I regret claiming Social Security at 65 and what I wish I had done differently.

1. I Missed Out on Higher Monthly Benefits

One of the biggest drawbacks of claiming at 65 is that I did not receive my full retirement age (FRA) benefits. Since my FRA was 66 or 67, I ended up receiving a reduced monthly benefit for the rest of my life. Had I waited until age 70, I could have increased my payments by 8% per year due to delayed retirement credits.

2. Inflation Has Made My Benefits Feel Smaller

While Social Security COLAs (Cost-of-Living Adjustments) help counteract inflation, they haven’t fully kept up with rising costs, especially in healthcare and housing. If I had waited to claim benefits, my starting amount would have been higher, making COLA increases more impactful over time.

3. I Didn’t Realize the Tax Implications

Since I continued working part-time after retiring, a portion of my Social Security benefits became subject to federal income tax. If my provisional income (adjusted gross income + nontaxable interest + half of Social Security benefits) exceeded $25,000 for single filers or $32,000 for joint filers, up to 85% of my benefits became taxable. Delaying benefits could have helped me manage my taxable income more effectively.

4. My Spouse’s Survivor Benefits Could Have Been Higher

If I had waited to claim Social Security, my spousal and survivor benefits would have been larger. Since Social Security survivor benefits are based on the higher-earning spouse’s benefit amount, delaying benefits until age 70 could have provided my spouse with more financial security in the future.

5. I Had Other Income Sources That I Didn’t Maximize

I had retirement savings in a 401(k) and IRA, but instead of strategically withdrawing from these accounts first, I claimed Social Security early. Had I used my savings to bridge the gap and delayed my Social Security claim, I would have maximized my long-term monthly payments.

6. What I Would Do Differently

If I could go back, I would have:

• Waited until age 70 to claim benefits and maximize my monthly payments
• Used other retirement savings to cover expenses in the meantime
• Planned better for taxes to reduce the percentage of benefits subject to taxation
• Considered my spouse’s financial future when making my decision

Final Thoughts

Claiming Social Security at 65 might work for some retirees, but for many, waiting could lead to higher lifetime benefits and better financial security. If you haven’t claimed yet, carefully evaluate your income sources, health, and long-term needs before making a decision.

For more guidance on Social Security strategies, visit the Social Security Administration.

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