Should You Take Social Security at 67 or Wait? A Retirement Dilemma

## The Big Question: Take the Money Now or Wait?

A 67-year-old reader who still earns $100,000 a year wants to know whether he should start collecting his Social Security (a monthly government payment for retirees) of $30,000 a year now, or hold off for a larger benefit later. His wife, 60, recently retired.

### Their Financial Situation

This couple is in great shape:

• $950,000 in combined savings across retirement accounts, Roth IRAs (special tax-free retirement accounts), and Treasuries (safe government loans that pay interest)
• Their home is fully paid off — no mortgage or debt
• Six months of emergency cash set aside
• They live in a Southern state with no state income tax

The key question, according to the financial columnist, is simple: Do you actually need the money now? If not, wait.

Here's why waiting makes sense:

• Your benefit grows about 8% per year if you delay claiming, up to age 70
• A bigger benefit also means a larger payment for your wife if you pass away first (called a survivor benefit)
• Claiming now while still earning $100,000 would push you into higher taxes

If he collects Social Security while still earning a full salary, up to 85% of his benefit could be taxed. This is because of something called provisional income (a special IRS formula that decides how much of your Social Security gets taxed). Even though his wife's income dropping from $50,000 to zero helps, his $100,000 salary would still push them over the limit.

### The Bottom Line

Since this couple doesn't urgently need the extra income, waiting until full retirement — or even age 70 — is likely the smarter move. It means a bigger lifetime benefit, more protection for his spouse, and a lower tax bill.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/we-own-our-home-outright-i-am-67-and-earn-100-000-do-i-take-my-30-000-social-security-now-or-wait-bbe1e123?mod=mw_rss_topstories