Social Security strategies for elderly parents — timing and optimization

This article is for educational purposes only and does not constitute medical, legal, or financial advice. Every family situation is different, and you should consult with appropriate professionals about your specific circumstances.

Here's a conversation that doesn't happen nearly enough between adult children and their aging parents: when should you actually start taking Social Security?

Most people treat this like a simple question with a simple answer. You turn 62, you file, you get your check. But it's not that simple. The decision about when to claim Social Security is one of the biggest financial decisions your parent will make, and a wrong call could cost them thousands of dollars over their lifetime. The frustrating part is that the right answer depends on things nobody can predict with certainty: how long your parent lives, what their health trajectory looks like, whether they'll keep working, whether they need the money now.

You can't know the future, but you can understand your options well enough to make an informed decision. That's different from just accepting whatever seems convenient or whatever their friends are doing.

The Basic Reality About Social Security

Social Security gives your parent a monthly check. The amount depends on how much they earned over their lifetime and when they choose to claim benefits. This is the part most people understand. What they don't understand is that when your parent claims matters enormously.

Your parent becomes eligible to claim Social Security at 62. They get a full retirement benefit at their full retirement age, which is somewhere between 66 and 67 depending on their birth year. If your parent waits past full retirement age until 70, they get a higher benefit. The specific numbers depend on your parent's earning record, but the structure is simple: claim early, get less per month. Claim at full retirement age, get a middle amount. Claim late, get more per month.

Here's where most people get confused: the total amount your parent will receive over their lifetime depends partly on how long they live. If your parent lives to 95, claiming at 70 likely means they get more total money than claiming at 62. If your parent dies at 75, claiming at 62 probably meant they got more total money. There's a break-even point, usually somewhere around age 80 to 82, where the decision matters.

The complication is that your parent doesn't know how long they'll live. Nobody does. Health can change suddenly. Your parent might have good genes and outlive expectations, or they might have a serious health event that changes everything.

Claiming Early: The Math and the Reality

If your parent claims at 62, they get about 70 percent of their full retirement benefit (the exact percentage varies by birth year, but it's roughly 70 percent). If their full retirement benefit would be $1,800 per month at age 66, claiming at 62 gives them about $1,260 per month.

This seems like a reasonable trade-off if your parent needs money now. They can't use money they don't claim yet, and if something happens, that money's gone. Some people claim early for this reason, and that's a valid choice. But you need to understand what it costs.

Taking the same example: if your parent claims $1,260 per month at 62, over the next 20 years they'll receive about $302,400. If they wait until 66 and claim $1,800 per month, they'll receive $432,000 total over those same 20 years. The difference is over $129,000. That's not trivial.

The catch is that between age 62 and 66, your parent is only claiming in the later years of that comparison. So the math looks like: claim early and get reduced benefits for longer, or wait and get higher benefits for less time. If your parent lives long enough, waiting wins. If your parent doesn't, claiming early wins.

When It Makes Sense to Claim Early

Claim early if your parent absolutely needs the money now. If they're facing care costs they can't cover any other way, if they're in financial crisis, if they have serious health issues that suggest a shorter life expectancy—then claiming early makes sense. The money isn't useful if you can't access it when you need it.

Claim early if your parent's family history suggests shorter life expectancy. If your parent's parents didn't make it past 75, and your parent is showing signs of serious health problems, waiting to 70 might mean your parent never gets the full benefit of that higher payment.

Claim early if your parent wants to retire and stop working and that's a priority that outweighs the financial hit. This is a quality-of-life decision, not purely a financial one. Your parent might value the freedom of not working more than they value the extra money that would come from waiting.

Don't claim early just because it's available. That's the mistake most people make.

Full Retirement Age: The Middle Path

Claiming at full retirement age is neither early nor late. Your parent gets their full benefit, and they haven't sacrificed future income or delayed access to money. If your parent reaches full retirement age and is healthy and likely to live into their 80s, this is often a reasonable middle ground.

The advantage is that your parent gets their full benefit without the reduction. The disadvantage is that if they live past 80, they would have gotten more money by waiting until 70. The advantage over claiming early is that if they live to the average age, they come out ahead.

This is where a lot of people land, especially if they stop working at full retirement age anyway. They claim because they're officially retired and don't need to keep working. Their employer might give them a pension or lump sum at this age, or they just decide it's time.

Delaying to 70: The Long Game

For every year your parent waits past full retirement age until 70, their benefit goes up about 8 percent per year. So if full retirement benefit is $1,800, by waiting until 70, your parent gets about $2,376 per month. That's a 32 percent increase over the full retirement benefit.

This only makes sense if your parent expects to live long enough to break even. Usually that break-even point is around 80 to 82. If your parent claims at 70 and lives to 85, they've likely come out ahead compared to claiming at 66. If your parent claims at 70 and dies at 78, they would have been better off claiming earlier.

Delay if your parent is healthy, has a family history of longevity, is still able to work or has other income, and can afford to wait. This is a bet on a longer life.

Don't delay just to maximize theoretical lifetime benefits. Your parent needs to actually live long enough for that to matter, and the odds aren't automatic.

The Working Parent Complication

Here's something that surprises people: if your parent claims before their full retirement age and continues working, Social Security will reduce their benefit. You can earn up to a certain amount ($23,400 in 2024) before your benefit gets reduced. After that, Social Security takes back $1 for every $2 you earn.

So if your parent claims at 63 and keeps working and earns $40,000 that year, their Social Security benefit gets reduced because they've earned more than the limit. In the year they reach full retirement age, the reduction rules change and become less restrictive. After they reach full retirement age, there's no reduction no matter how much they earn.

This matters if your parent wants to keep working. Claiming early might not make financial sense if your parent's benefit is going to get reduced anyway.

The Married Complication

If your parents are married, Social Security gets more complicated because there are spousal benefits and survivor benefits and rules about what each spouse can claim. Generally, a lower-earning spouse can claim a benefit based on the higher-earning spouse's record. The lower-earning spouse can claim a spousal benefit even if they didn't work much themselves.

There are also rules about when each spouse should claim to optimize the total household benefit. A married couple might have different break-even ages, and coordinating their claims is a strategic decision.

This is where a good financial planner or Social Security specialist really earns their fee. The optimization questions for married couples are complex enough that professional guidance is worth the cost.

What You Actually Need to Do

First, get your parent's Social Security statement. They can view this online at ssa.gov or request a paper statement. The statement shows their estimated benefits at 62, at full retirement age, and at 70. These are the actual numbers for your parent, not generic examples.

Second, think about your parent's health and longevity. Talk to their doctor if needed. Ask directly: given my parent's health conditions, what's a realistic life expectancy? This doesn't have to be morbid. Doctors think in probabilities. They can tell you if your parent has a condition that suggests shorter life expectancy or if your parent is likely to have a longer-than-average lifespan.

Third, understand your parent's financial situation. Do they have other income? Can they afford to wait? Do they need this money now? Are they still working?

Fourth, think about your parent's goals. Do they want to work longer, or do they want to retire? Is maximizing lifetime income the priority, or is accessing money sooner more important?

After considering all of this, your parent can make a decision. If they need professional guidance, a fee-only financial planner or a Social Security benefits specialist can help optimize the decision. This is worth paying for if your parent has substantial benefits and the decision feels unclear.

Making the Actual Decision

Once you've done the homework, your parent needs to make a call. The decision isn't permanent—your parent can change their claim within a year of filing and get most of their money back, and there are some other limited do-over options,but it's basically a one-way door. So it should be a thoughtful decision, not a hasty one.

Most people claim either early because they need the money, or at full retirement age because they're retiring anyway. Some people delay to 70 because they can afford to wait and they expect to live a long time. Each of these is a valid choice for the right person in the right circumstances.

The worst choice is to make a decision without thinking, claim early "because you can," and then spend years wishing you'd waited. Your parent has spent their lifetime working and contributing to Social Security. They deserve to actually think about how to use it wisely.

How To Help Your Elders is an educational resource. We do not provide medical, legal, or financial advice. The information in this article is general in nature and may not apply to your specific situation. If you are concerned about a loved one's cognitive health or safety, consult with their healthcare provider or contact your local Area Agency on Aging for guidance and support.