When to claim Social Security if you have a high net worth (~$1M+ saved)

If you're rolling into your 60s with a high net worth (around $1+ million saved), you're likely pondering a critical question:

Should you claim Social Security at 62, wait until full retirement age (FRA), or defer to age 70? 

Most advice out there defaults to “wait until 70,” but that avoids the reality of your actual financial situation—including your savings, taxes, health, and lifestyle.

While I would suggest reaching out to an advisor for a more detailed assessment of your scenario, and you should feel free to reach out to us for a complementary consult via our Free Retirement Planning Consultation Link,

this post will unpack how each claiming age impacts your retirement income, portfolio strategy, and long-term confidence in retirement—especially for those with significant assets.

1. Benefits by Claiming Age: What the Numbers Say

• Age 62: You receive roughly 30% less than at FRA.

• FRA (~66–67): You get 100% of your Primary Insurance Amount (PIA).

• Age 70: Benefits increase by about 8% per year delayed—capping out at roughly 124% of PIA. When to Claim Social Security - at 62 or 70? | Retirement Researcher

  
  

This aligns with recent reporting: "Delaying Social Security benefits until age 70 increases payments by approximately 8% annually, up to 132% of the full benefit.” Kiplinger

2. Why 'Wait Until 70' Isn’t Always the Right Answer

a) Vanguard’s nuanced research: Vanguard highlights that early claiming isn’t inherently flawed. For individuals whose savings provide solid longevity coverage, “claiming early can give more money in the near term…and offer tax advantages.” Social Security: For some, early claiming is better | Vanguard

b) Break-even timing varies: Depending on health, inflation, and discount rates, the age when delayed benefits overtake early ones fluctuates—often landing around age 80. Retirement Researcher+1

c) Behavior matters: Human behavior—fear, emotional decision-making—often undermines retirement success. A structured, personalized strategy can mitigate those behavior‑driven pitfalls. A simple step to approach retirement

3. The Role of Sequence-of-Returns Risk

One of retirement's biggest threats: sequence‑of‑returns risk—heavy market losses early on, combined with withdrawals, can create long-term damage.

• U.S. Bank warns retirees to avoid selling in down markets because early losses can seriously disrupt sustainability. https://www.usbank.com/retirement-planning/financial-perspectives/sequence-of-returns-risk-impact-when-to-retire.html?

  
  

• Academic research recommends flexibility in spending and portfolio composition to soften this risk. New Jersey State Library

  
  

A bucket approach—holding 1–2 years of cash, high-quality bonds for the mid‑term, and equities longer-term—can buffer against market timing shocks. Jacksonville Journal-Courier+1

This hypothetical example in the chart below shows that claiming early during a scenario of market downturn of 20%, followed by two years of 15% recovery, and 7% per year thereafter pushes the breakeven age back quite significantly. While this does not factor in taxes, it is worth considering. It stands to highlight that social security claiming strategy effectiveness also is affected by market environments.

4. The Spending Psychology of Early Retirement

Spending often peaks in the first 5–10 years when retirees are most active. Later, expenses typically taper—so holding off to claim larger checks later may not align with higher early retirement spending. Business Insider+1

That “use it when you can” logic supports early or FRA claiming for those eager to enjoy their new lifestyle.

5. Tax Dynamics & Provisional Income Complexities

Social Security taxation depends on your provisional income, and can shift between tax‑free to fully taxed. Managing distributions across taxable, tax‑deferred, and Roth accounts can significantly impact your total tax burden. 

Suze Orman recently emphasized that claiming early is often the biggest retirement mistake—mainly because it bypasses potential Roth planning benefits. Kiplinger

6. A Balanced View: Pros and Cons Table

Claiming Age	Pros	Cons
62 (Early)	Income starts immediately; reduces early portfolio withdrawal risk; fits active retirement spending.	Monthly benefit down ~30%; less cumulative income if longevity is high.
Full Retirement Age (~66–67)	Balanced income; no reduction or delay; moderate portfolio pressure.	Still requires withdrawals from savings; exposure to market swings.
70 (Delayed)	Highest benefit (~124%); buffers longevity risk; stronger inflation protection and survivor value.	Must withdraw from portfolio for ~8 years; requires discipline and downside buffer.

7. What Research Suggests for $1M-Plus Households

• Optimal claiming models (Diamond et al.) show that when wealth-to-PIA ratios are high (as with a $1M portfolio), it's rational to delay claiming at least a year to benefit more later. Optimal Claiming Models

  
  

• Vanguard’s analysis again suggests early claiming can occasionally outperform delaying—context matters. Vanguard

  
  

8. Behavioral & Strategic Recommendations

To mitigate risk and increase flexibility:

• Use spending buckets for short‑term stability. AP News

• Groom your withdrawal strategy to adapt dynamically with the market. arXiv

• Layer in cash, bonds, and equities thoughtfully to protect against sequence risk and volatility. Wikipedia

• Align claiming choice with spending needs, health expectancy, and legacy goals.

9. Take-Away: No One-Size-Fits-All—But a Framework Helps

Whether claiming at 62, FRA, or 70, the goal isn't chasing the "biggest check"—it’s aligning Social Security with your lifestyle, longevity, portfolio, and tax picture.

Vanguard’s key takeaway: there’s truly “a spectrum of breakeven and longevity risk,” and your personal context dictates where you land on it. 

10. Ready to Explore Your Scenario?

If you're evaluating next moves—and want clarity and confidence about when to claim Social Security—I'm here to help.

Parkmount Financial Partners is a fiduciary-led firm based in Boston, offering tailored retirement income strategies and virtual financial planning across U.S. jurisdictions where we’re licensed or exempt.

Disclaimers:

Disclosures Can Be Found Here: Parkmount Financial Investment Advisory Brochure 

“Parkmount Financial Partners LLC”  (herein “Parkmount Financial”) is a registered investment advisor offering advisory services in the State[s] of Massachusetts and in other jurisdictions where exempt. Registration does not imply a certain level of skill or training.

The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site. 

The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Parkmount Financial disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.

Parkmount Financial does not warrant that the information on this site will be free from error. Your use of the information is at your sole risk. Under no circumstances shall Parkmount Financial be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Parkmount Financial or a Parkmount Financial authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.