Jeremy Suschak, CFP®

Mon, Jun 2, 2025, 5:00 AM8 min read

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Should I collect Social Security now ($2,621 per month) or later? I’m 62 and my wife is 60. I retired in 2015 and my wife will retire in February 2026. I’m collecting a pension of $5,125 per month. My wife earns $50,000 per year and will collect a $300 monthly pension when she retires in February 2026. She will also collect Social Security at 62 ($937 per month). We own our house, have $210,000 in IRAs, $250,000 in Roth, $45,000 in health savings accounts (HSAs) and no debt. Our annual expenses are $100,000. We have normal health issues like high cholesterol and high blood pressure but otherwise are in good health.

Congratulations on your early retirement, and to your wife on her upcoming retirement. You both have worked hard to put yourselves in a position to enjoy a lengthy post-career life-you've accumulated material savings, established a debt-free balance sheet and mapped out a target annual spending level. Fortunately, the work you've done so far should give you some flexibility as you approach the Social Security timing decision, which is one of the most common questions among retirees.

A financial advisor can help you decide when to claim Social Security and how to tackle other retirement planning decisions. Connect with an advisor today.

Let's walk through a few scenarios in the context of your income sources, expenses and assets before evaluating the merits of each option, recognizing that many variations exist.

If you were to start collecting Social Security now, your monthly benefit would be $2,621 or $31,452 per year. When combined with your $61,500 annual pension and your wife's $50,000 salary, you would stand to earn $142,952 on an annualized basis until your wife retires in February 2026. This represents a surplus of about $43,000 over your $100,000 in annual expenses, meaning you wouldn't need to tap into your investment accounts.

This picture changes materially when your wife retires next year, and total income is reduced by $50,000. However, with the addition of her $3,600 pension, you will still only be about $3,500 short of your $100,000 annual budget. If you have flexibility with some of your expenses, you may not need to dip into your retirement savings between the time she retires and begins collecting $11,244 annually in Social Security payments at age 62, especially if the gap between her retirement date and 62nd birthday is relatively short.