If 2025 is the year you’re retiring, congratulations. You’ve probably been counting down to this milestone, and you’re hopefully excited about this next phase of life.

A lot of people make plans to retire and claim Social Security simultaneously. But should you? Run through the questions to find out.

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1. Have I reached full retirement age?

Full retirement age is when you’re eligible for your complete monthly Social Security benefit based on your individual income history. You can consult this table to see when your full retirement age kicks in.

Data source: Social Security Administration.

If you haven’t reached full retirement age, you can sign up for a reduced Social Security benefit as long as you’re at least 62 years old. But that reduction will generally remain in place for the rest of your life, so you’ll need to think about how that could impact your long-term finances.

To that end, think about the things you want to do in retirement — and how much money they might require. Filing for Social Security right away might make your first year or two of retirement more comfortable because you’ll be getting that money to spend sooner. But will there be repercussions down the line because you’ve locked in a smaller monthly benefit? Possibly.

2. Do I have a sense of how long I’ll live?

Before you write this one off as a ridiculous question, hear it out. Nobody has a crystal ball, and it’s impossible to predict with certainty how long you’ll live. But there are factors you can think about to render an educated guess.

If you’re in great health and have parents who are still alive in their 90s, there’s a good chance you may end up living a longer life yourself. On the flip side, if you have health issues, you may be anticipating a shorter retirement.

This is an important thing to contemplate because if you expect to live a long life, you’re at a greater risk of running out of savings by virtue of needing that money to last longer. So in that case, what you may want to do is claim Social Security on the later side — in other words, not necessarily file for benefits the moment you retire. If you’re able to cut back on spending or even take a little money out of your savings early on in retirement, you can potentially lock in a higher monthly benefit, which is guaranteed income for life.

3. Do I even have savings I can comfortably tap into for a few years instead?

There’s one thing Social Security has going for it over your IRA or 401(k) — those payments are guaranteed for life. Now it’s important to manage your nest egg wisely and not withdraw too much from your savings too early on in retirement so that money lasts. At the same time, though, if you have a decent amount of savings, it could make sense to withdraw a little extra for your first couple of years of retirement so you’re able to grow your Social Security benefits.

Do remember that for each year you hold off on filing past full retirement age, your monthly benefit increases by 8%. You’re not going to get a guaranteed 8% increase out of your portfolio.

Of course, this point is moot if you don’t have savings to tap, or your nest egg is minimal. But if you’re sitting on a decent sum of money, you have options.

The decision to claim Social Security is a big one, so you shouldn’t necessarily rush to take benefits the moment you retire. Think things through, but don’t hesitate to consult with a financial advisor for help making your choice. They can review your personal situation and help you better understand the pros and cons of filing at different ages as they relate to you.

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