Quick Read
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Claiming Social Security at 63 instead of 67 cuts a $3,000 monthly benefit by 25% to $2,250, and cost-of-living adjustments widen the gap yearly.
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Early claiming yields $108,000 upfront, but waiting breaks even around age 79 and pays off most for those who live into their 80s and 90s.
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Clark Howard says drawing on investments in your 60s beats claiming early, and cash or bonds can bridge the gap without selling stocks at a loss.
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A hypothetical 63-year-old retiree's portfolio leans heavily on big tech stocks. This week he saw the Nasdaq suffer its worst day since April 2025 as AI shares sold off. By Friday, the index had tumbled into correction territory. The Invesco QQQ Trust( NASDAQ:QQQ ), which tracks the Nasdaq-100, finished the week down about 5% and is off about 13% over the past month.
His own account may have fallen more or less than the index. Either way, the selloff gives him an idea. He could start Social Security now, live on the checks and give his stocks time to recover. But could protecting his investments today cost him hundreds of dollars a month in Social Security for the rest of his life?
What Claiming at 63 Costs Him
Assume his full benefit at 67, which is the full retirement age (FRA) for people born starting in 1960, is $3,000 a month. The estimated average retirement benefit in January 2026 was $2,071, per the SSA.
If he claims at 63, he gets $2,250, which is 25% less. Social Security takes 5/9 of 1% for each month he claims early, up to 36 months, and a smaller amount for each month beyond that.
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Waiting until 67 adds $750 a month, or $9,000 a year. Waiting until 70 would raise his check to $3,720 before cost-of-living adjustments (COLAs).
Those bumps make the gap wider. Each year's raise is a percentage of the check he locks in. The 2.8% increase for 2026 adds more dollars to a $3,000 check than to a $2,250 one, and that happens every year he collects.
Weighing $108,000 Now Against $750 More Later
If he claims at 63, he collects $108,000 over the four years before he turns 67. If he waits, he gives up that money but gets $750 more every month after that. A simple break-even point comes around age 79. That number leaves out taxes, investment returns and inflation adjustments, so think of it as a rough guide.
A bigger monthly check doesn't automatically mean more money over his lifetime, because if he dies at 75, claiming early pays more in total. If he lives to 90, waiting wins, and his lead keeps growing every month. The larger check works like longevity insurance. It pays off most in his 80s and 90s, which is often when savings run low and checks are hardest to replace.
Selling Stocks Versus Shrinking a Lifetime Check
Selling investments in a downturn can lock in losses on shares worth less than he paid for them. But he decides how much to sell, and anything he keeps still has a chance to recover. Claiming early is different. It cuts what he gets each month for the rest of his life.
Cash, bonds or other investments may help fill the gap, and the $108,000 in early checks is roughly what he would need from those sources to wait until age 67 to claim. Drawing on them first gives his stocks time to recover, although a rebound isn't guaranteed, while allowing his Social Security benefit to grow. Consumer advocate Clark Howard shared his view. He put it this way: "You're generally better off taking money in your 60s from your investment accounts than taking the Social Security earlier because of the enormous back-end benefit."
Marriage raises the stakes. If he is the higher earner, waiting also increases what his surviving spouse may get. A widow or widower can generally collect a survivor benefit based on the higher earner's check, depending on when the survivor claims. That difference could affect his spouse's income for decades after he's gone.
Questions Worth Answering Before He Files
First, he should treat the market drop and the claiming decision as two separate questions. A bad stretch for stocks makes a short-term cash need, and money outside the stock market can usually cover it. The age he claims at determines every check for the rest of his life. If he has a few years of spending in cash and bonds, he may not have to choose between selling stocks and claiming early.
Second, if stocks really are all he has, claiming at 63 can still be a reasonable choice. He would just be making it knowing the price: $750 a month, raised by every future adjustment, for as long as he lives.
His decision should rest on his savings, his health, how long he expects to live and how much income he needs. One rough week in the market tells him little about any of those. Every household's numbers are different, and details like a pension or a spouse's work record can change the math.
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