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When should I start drawing my Social Security benefits? I'm asked this question more often than any other by my clients who are retiring before Social Security's normal retirement age. They all want to know if they should begin receiving benefits early with a smaller monthly amount, or wait for a larger monthly payment later they may not receive as long. In answering this question for yourself, you should take the following factors into consideration.

 You could consider drawing Social Security benefits early if: 

• The financial challenges facing Social Security in the future, which I discuss in more detail below, are well known. While it's unlikely changes to benefits would be made to those who are already retired, it could happen-especially to those who have done a good job of preparing for retirement and have adequate retirement income from other sources. You may delay drawing benefits only to find out the amount you were expecting to receive has been changed. In the meantime, you'll have been using your own savings to live on.  
• Social Security is largely based on life expectancy. If your family health history suggests your retirement is likely to be shorter, then it may be wise to start drawing benefits when you can.  
• Drawing Social Security early allows you to preserve you own savings longer. You'll need income from somewhere if you're retired at age 62. You can keep your own savings invested and growing longer by using your Social Security benefits to meet your living expenses.

You should consider drawing Social Security benefits later if: 

• The first consideration you should take into account is whether you'll be continuing to work and have earned income between age 62 and normal retirement age. Social Security benefits are penalized if you make over a certain amount of income. It wouldn't be wise to draw reduced benefits only to have them penalized.  
• The Social Security administration states if you live to the average life expectancy for your age, you'll receive about the same amount in lifetime benefits no matter when you start drawing benefits. In general, then, if you come from a family with longer life expectancies, you should come out ahead by delaying your benefits until normal retirement age.

Your spouse may be eligible for a benefit based on your work record. If you die before your spouse, he or she may be eligible for a survivor benefit based on your work record, particularly if you've earned more than your spouse over your lifetime. In this case, you may want to delay starting your benefits in order to provide your spouse with a higher amount.