You can claim Social Security as early as 62 or delay until 70. For anyone born in 1960 or later, full retirement age is 67. Claiming at 62 permanently reduces your benefit by about 30%, while each year you delay past full retirement age adds 8% up to age 70. The right age depends on health, other income and spousal benefits. Thoughtful Social Security planning in Chattanooga weighs all three.
Benefits also receive annual cost-of-living adjustments. The 2026 adjustment is 2.8%.
If you claim before full retirement age and keep working, benefits may be temporarily withheld when earnings exceed an annual limit. Withheld amounts are credited back after full retirement age.
Up to 85% of benefits can be federally taxable depending on income. Tennessee does not tax Social Security. Drawing from IRAs in the years before claiming can sometimes lower lifetime taxes.
A spouse can receive up to 50% of the other spouse's full retirement age benefit, reduced if claimed early. Delaying past full retirement age does not increase a spousal benefit, but it does increase the survivor benefit. That is why couples often have the lower earner claim earlier and the higher earner delay.
Break-even analysis compares how long you must live for delaying to pay off. It is a useful starting point, but it ignores survivor benefits, taxes and the insurance value of a larger lifetime income. The decision is less about winning a bet and more about protecting against a long life.
Your benefit is based on your highest 35 years of earnings. Review your statement at ssa.gov and correct missing years before you claim.
It depends on health, other income and spousal needs. Delaying increases monthly and survivor benefits, while claiming early may suit those with health concerns or no other income.
The 2026 cost-of-living adjustment is 2.8%.
No. Tennessee has no state income tax on Social Security benefits.
Want a claiming strategy built on your numbers? Ask about Social Security planning in Chattanooga.
This article is for educational purposes only and is not individualized investment, tax or legal advice. Talk with a qualified professional about your specific situation.
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