The Absolute Number 1 Reason to Claim Social Security at 65

Social Security is the backbone of many people’s retirement planning. However, figuring out when to retire is often easier said than done. You can retire anytime after 62, and delaying longer leads to a higher monthly benefit.

Delay too long, though, and you risk not being able to enjoy much of your retirement!

While delaying Social Security maximizes the monthly payout, claiming at an earlier eligibility age – 65 – offers certain advantages. 65 is no longer the “official” retirement age. For many, that’s pushed to 67. However, it does depend on the year you were born. (You can use SSA’s retirement age calculator to determine when your full retirement age is, which is important when deciding when to retire.)

That said, there are many benefits to retiring at 65, and many people still do. For those with health limitations, claiming Social Security at 65 provides crucial income to manage rising healthcare costs and potentially reduced earning capacity. By doing so, you can gain crucial financial support to manage rising healthcare costs and potentially reduced earning capacity, ensuring a more secure and manageable retirement.

Impact of Health on Earning Capacity

We’d all like to stay healthy well into our senior years. Unfortunately, this isn’t always the case. Health problems can sneak up on us when we least expect it – sometimes before we even reach retirement. Those with serious health challenges may find their earning capacity cut or be forced to retire early.

Chronic illnesses, such as heart disease, arthritis, or respiratory conditions, can significantly limit a person’s physical capabilities and stamina, making it difficult or impossible to perform their previous job duties.

This reduction in earning capacity creates a double bind for retirees with health limitations. Not only are they facing increased healthcare costs, but their ability to generate income to cover those costs is also potentially diminished.

Navigating the 2026 Inflation Surge

While health is a primary driver, the current economic climate adds a new layer to the math of early claiming. With 2027 COLA (Cost of Living Adjustment) projections currently estimated between 3.9% and 4.2%, claiming at 65 provides immediate access to these inflation-adjusted increases. For those facing medical bills, locking in these early adjustments on their monthly checks provides immediate liquidity that waiting for a higher base at 67 or 70 simply cannot match in high-inflation environments.

Often, it makes more sense to maximize your health. The guaranteed income from Social Security can be exceptionally helpful even if you can still work. Going down to part-time and claiming Social Security may provide the break you need to support your health.

How Social Security Benefits Help

Social Security acts as a vital safety net for retirees, offering a guaranteed monthly income that isn’t tied to market fluctuations or employment status. For those with health limitations, claiming Social Security at 65 can provide many benefits:

• Immediate Financial Support: Claiming benefits at 65 allows retirees to access this income stream immediately. This is crucial, especially when facing rising healthcare costs. The guaranteed income from Social Security can cover essential medical expenses, prescriptions, and potentially even long-term care costs.
• Predictable Income Source: If you have a chronic condition, there is no telling when it will flair up. Having a predictable stream of income that isn’t reliant on your ability to work or not can be a huge stress relief when you’re in the middle of a medical battle.
• Reduced Financial Stress: When you’re sick, the last thing you want to worry about is financial problems. Even if you don’t really need it, claiming Social Security at 65 can help you alleviate some stress by providing a buffer in case your health problems get worse.

The 3.9% Guardrail: Protecting Your Portfolio

Claiming early also serves as a quantitative strategy to protect other retirement assets. By using Social Security at 65 to cover the “floor” of medical and living expenses, retirees can avoid selling stocks or mutual funds at a loss during market downturns. This allows for a more sustainable withdrawal model on private portfolios, such as a 3.9% guardrails approach, ensuring that your savings last as long as you do.

Potential Drawbacks

Of course, there are several drawbacks to claiming Social Security early, too. Your monthly benefit will slowly increase if you wait past your eligibility age. Delaying is also very tempting, especially if you don’t have tons of savings for retirement.

However, delaying may not be the most prudent choice if you have medical limitations or if legislative changes impact your specific situation. The 2025 Social Security Fairness Act, for example, addressed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), fundamentally changing the calculation for many retirees who previously faced reduced benefits.

The primary reason to consider 65 remains the uncertainty associated with health. While delaying benefits offers a higher future payout, it hinges on your ability to enjoy those benefits for an extended period. After all, a higher payout doesn’t help if you don’t make it more than a couple of years later.

When deciding when to claim Social Security, we recommend reviewing our Social Security guide. Understanding how exactly Social Security works and how your age affects it is vital to making a good decision for your retirement.

Editor’s Note: This article includes updated macroeconomic data regarding 2027 COLA projections, new analysis on protecting investment portfolios through sequence-of-returns risk management, and references to the 2025 Social Security Fairness Act.