Social Security Timing for Massachusetts Retirees: The Real Costs of Claiming Early vs. Waiting

For many retirees in Massachusetts — whether you live in Newton, Wellesley, Lexington, or along the South Shore — deciding when to start Social Security is one of the most important financial choices you’ll make. The age you choose can affect not just your monthly income, but your lifetime benefits, taxes, and even how much you can leave to a surviving spouse.

While there’s no one-size-fits-all answer, understanding the trade-offs between claiming early, waiting until full retirement age (FRA), or delaying until age 70 can save you tens — or even hundreds — of thousands of dollars over your lifetime.

1. The Basics: Ages and Benefit Adjustments

Claiming Early (as soon as age 62): Benefits are permanently reduced, typically by about 25–30% compared to your full retirement age benefit.
Full Retirement Age (66–67 depending on birth year): You receive your full benefit amount.
Delaying Past FRA (up to age 70): You earn delayed retirement credits — an increase of about 8% per year for every year you wait past FRA, up to age 70.

Example:
Susan, age 62 and living in Quincy, could start Social Security now at $2,000/month, or wait until 70 and receive about $3,520/month. Waiting means eight years without benefits, but also 76% more income for life — a big deal if she lives into her 90s.

2. The Break-Even Point

The break-even point is the age at which the total benefits from waiting catch up to (and surpass) the benefits from starting earlier.

Typically, if you live past age 78–80, waiting until age 70 can result in higher lifetime benefits.
If you have significant health concerns and don’t expect to live that long, claiming earlier might make more sense.

Example:
Bill from Lexington is in excellent health with longevity in his family. By waiting until 70, he breaks even at age 79 and stands to collect far more in the long run.

3. How Social Security Fits With Other Income Sources

For retirees with different types of accounts — pre-tax IRAs, Roth IRAs, and taxable brokerage accounts — the timing of Social Security can work hand-in-hand with tax planning.

If you retire around age 60, you may have a low-income window before starting Social Security and RMDs. In those years, you can:

Make low-tax withdrawals from pre-tax IRAs
Convert IRA dollars to Roth at favorable rates
Draw from brokerage accounts to bridge the gap

Example:
Mary from Needham retires at 61. She delays Social Security to 70, uses her low-income years to convert IRA funds to Roth, and ends up reducing her lifetime tax bill while securing a higher guaranteed benefit later.

4. Survivor Benefits Considerations

If you’re married, delaying Social Security can boost survivor benefits for your spouse.

The surviving spouse receives the higher of their own benefit or their late spouse’s benefit.
For couples with one higher earner, having that person delay Social Security often makes sense.

Example:
John and Lisa from Brookline — John is the higher earner. By waiting until 70, John locks in the largest possible survivor benefit for Lisa, ensuring she’s better protected if he passes away first.

5. Divorced Spouse Benefits

If you’re divorced, you may be eligible to collect benefits on your ex-spouse’s work record if:

The marriage lasted at least 10 years
You’re currently unmarried
You’re age 62 or older
Your own benefit is less than what you’d receive from your ex-spouse’s record

You can claim these benefits even if your ex has remarried — and it doesn’t reduce what they (or their current spouse) receive.

Example:
Karen from Norton, MA was married for 15 years before divorcing. Her own Social Security benefit at FRA would be $1,200/month, but she’s eligible to receive $1,800/month based on her ex-husband’s record. This extra income allows her to delay drawing from her own IRA, improving her long-term financial stability.

6. Massachusetts Cost of Living Impact

Living in Massachusetts — whether it’s Wellesley, Concord, or Hingham — comes with higher expenses than the national average. A higher guaranteed income stream later in life can help offset rising costs like property taxes, healthcare, and utilities.

Delaying Social Security can act as an inflation-protected “pay raise” in your later years, reducing the risk of needing to sell assets in a down market.

7. Coordinating Social Security With Work — and the Early Claiming Income Limit

If you claim Social Security before full retirement age and continue working, the earnings test could reduce your benefits temporarily. This often catches early retirees by surprise.

In 2025, you can earn up to $22,320/year without affecting your benefits.
Above that limit, $1 in benefits is withheld for every $2 earned.
In the year you reach FRA, a higher limit applies — $59,520/year in 2025 — and the withholding is $1 for every $3 earned above the limit (only for months before your FRA).
Once you reach FRA, there’s no limit on how much you can earn without affecting your Social Security benefits.

💡 Important: Withheld benefits are not lost forever — they’re recalculated into your future payments once you hit FRA — but the cash flow gap can create budget stress if you were counting on that income.

Example:
Karen from Newton, age 63, decides to claim Social Security while working part-time at a local boutique. She earns $35,000/year, which is $12,680 over the 2025 limit. That means $6,340 in benefits will be withheld for the year — a big surprise she wasn’t expecting. For someone with a $2,000/month benefit, that’s over three months of lost payments.

Why We Recommend a Public Affairs Office Meeting
The Social Security system has layers of rules, exceptions, and quirks that can meaningfully change your claiming strategy — especially if you’re divorced, widowed, or have a mix of income sources. I recommend that every client schedule a meeting with the Massachusetts Social Security Public Affairs Office to review their specific situation. In fact, I often schedule these sessions on behalf of clients and join the calls myself. That way, you have a knowledgeable advocate in the room to ensure you understand all available benefits and make a truly informed decision.

The Bottom Line

Social Security timing is both a math problem and a lifestyle decision.

If longevity runs in your family, delaying can pay off.
If you need the income now or have health concerns, starting earlier may be better.
The best approach blends your benefit strategy with tax planning, account mix, and personal goals.

Pro Tip: Even if you think you know your ideal claiming age, running the numbers with a financial planner — especially one familiar with Massachusetts taxes and cost of living — can reveal opportunities you might otherwise miss.