Social Security benefits are the cornerstone of retirement income for many Americans. However, deciding when to start collecting benefits can be a puzzle, and the solution is different for everyone. You can claim Social Security starting at age 62 or delay it until age 70. The longer you wait, the higher your monthly benefit will be. There are a variety of ways you can structure your Social Security claim strategy, depending on your income needs, personal savings, and retirement goals. Use the following three scenarios to assess what is the best time for you:

Early start of benefits

A person retiring at age 62 counts on Social Security to help meet income needs once retirement begins. His monthly benefit will be $1,500, 25 percent less than what he would have received at age 66, his full retirement age.

Those who claim early will receive a lower monthly benefit. If you are retired or planning to retire early, it may make sense to claim benefits before full retirement age. Social Security can help you cover the costs of living and keep you from having to withdraw significant sums from your personal savings. So this form of cash flow can help you maintain your savings for what could be decades into retirement. However, if you continue to work after claiming and your earnings exceed the earnings limit, you may be able to sacrifice some of your current benefits until you reach full retirement age.

Claiming Benefits at Full Retirement Age

A working spouse plans to claim their full retirement benefit at age 66. Claiming helps provide a cushion of cash flow as she and her husband begin a slow transition to retirement. Her benefit of $2,733 per month would be 32 percent higher if she waited until age 70, but she will collect a minimum of $32,796 per year in benefits starting at age 66.

Waiting until full retirement age to claim benefits means your monthly paycheck will be higher than if you started receiving benefits at a younger age. For a married couple in need of an increase in income, it may be convenient for the lower-earning spouse (who qualifies for a lower Social Security benefit) to be the first to claim benefits. This is because if the spouse earning the highest benefit is the first to die, the surviving spouse will begin collecting that person’s highest benefit. Therefore, it may make sense for the higher-earning spouse to delay applying until she qualifies for the highest possible benefit.

Collect benefits as late as possible

From your 70’sthe birthday, a person can start collecting the maximum benefit. Knowing this, a wife who is the highest-earning spouse waits until age 70 to collect Social Security first, generating an income of $3,224 per month. That’s 32 percent higher than the $2,450 monthly benefit she qualified for at full retirement age.

If you choose to continue working, or rely on your savings until you claim at age 70, you will qualify for the maximum monthly benefit. After age 70, the maximum amount does not change, so there is no reason to delay collection beyond age 70. Waiting to claim may make sense if you plan to continue working later in life or if you have enough assets to meet your income needs after retirement without risking your long-term financial security.

Be conscious when making decisions

Determining when to claim Social Security is best done in the context of your overall retirement plan. Learn what other sources of income are available and how they can be better used in conjunction with Social Security. Discussing this matter with your financial advisor can help you make the right decisions for your circumstances.