How to Decide When to Claim Your Social Security Benefits
In the physician finance world and on our physician communities, we spend a lot of time talking about maxing out retirement accounts and otherwise saving for retirement, especially because physicians often have a late start with retirement contributions. That said, the discussion of when to start accessing that money in retirement is much less talked about. One of the most consequential financial decisions that you’ll have to make, possibly even before you hang up your stethoscope, is when to start claiming Social Security benefits. While there’s technically no right or wrong answer, especially as there’s no crystal ball that can determine how long you’ll be accessing benefits, the option you choose will have large consequences for how much money you will receive from the program. Below, we cover what physicians need to understand about Social Security timing: how the system works, what makes physicians' situations different from the average worker, and the key factors that should drive your decision.
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Does it really matter when you claim your Social Security benefits?
How Social Security benefits are calculated, and why might this matter for physicians?
What is "full retirement age" and why is it not 65 years old anymore?
Should physicians delay claiming Social Security payouts until 70 years old?
The tax implications of claiming social security as a high earner
Part-time practice in early retirement can work in your favor
Does it really matter when you claim your Social Security benefits?
For most physicians who work a full career, Social Security is hopefully not really about providing a security net, as most physicians don’t “need” this particular pot of money at this stage to pay their bills. As such, it’s more about optimizing the income stream that they are owed after years of paying into the system, and coordinating it within the context of other savings, investments, income streams, retirement plans, taxes, Medicare, and their spouse’s benefits.
If you need help thinking through the complexity of this scenario, it may be helpful to talk to a financial advisor. We have a list of financial advisors for physicians that could help.
How Social Security benefits are calculated, and why might this matter for physicians?
Social Security retirement benefits are calculated based on your 35 highest-earning years, as well as the age where you start claiming benefits.
Basically, Social Security looks at your earnings history, indexes it to account for growth in your average wages throughout your career, and then selects the highest 35 years. They then calculate the AIME (Average Indexed Monthly Earnings) by dividing the total earnings over the 35 years by 420 months. Depending on the age at which you start claiming benefits, a formula converts that AIME into your basic benefit (called the PIA, or Primary Insurance Amount). The percentage of the benefit that you get when you start claiming will depend on your “full retirement age,” explained in more detail below.
What you’re projected to get is actually very easy to see by looking up your ‘my Social Security’ record - so don’t guesstimate this. Look at what’s actually showing. Also, while you’re at it, check the record for any errors.
Why this may impact physicians
There’s two things about physician income that factor in here. First, physicians tend to start earning income later in their careers, so if they choose to retire early, they may have fewer years of earnings. Second, there’s a large difference between what physicians make in residency and fellowship and what they earn as attending physicians.
If you have fewer than 35 years of earnings, the Social Security Administration (SSA) fills in zeros for the missing years, which directly reduces your benefit. If your highest 35 years include income years from residency and fellowship, they could also bring down your average. As such, even if you’ve technically worked 35 years but those years include residency, fellowship, or other low earnings years, there may be a benefit of working a few more years if you’re looking to maximize benefits.
An important caveat, though, is that physicians often hit the Social Security maximum even when lower earning or non earning years are taking into account. In 2026, Social Security taxes only apply to the first $184,500 that you earn. Making more than that in a given year won’t increase your overall benefit or give you additional units of Social Security credit.
What is "full retirement age" and why is it not 65 years old anymore?
Full Retirement Age (FRA) is the age at which you're entitled to 100% of your Social Security benefit. For anyone born in 1960 or later, FRA is 67 (not 65, as many physicians trained under older assumptions still believe). Once you reach age 70, there's no additional financial advantage to waiting. Delayed retirement credits stop accumulating, so postponing benefits beyond that point simply means collecting fewer monthly payments. Here's how timing affects your monthly benefit, assuming a full retirement age of 67:
Claim at 62 (earliest possible): Your benefit is permanently reduced by up to 30%
Claim at FRA (67): You receive 100% of your calculated benefit
Claim at 70: You receive 124% of your FRA benefit, thanks to delayed retirement credits of 8% per year
It’s also important to note that you can choose to use your Medicare benefits even if you delay your Social Security election time.
Should physicians delay claiming Social Security payouts until 70 years old?
The fact is that for many physicians, it won’t make a difference in lifestyle to start claiming at 62 versus 70, so many physicians optimize for max benefit, which they would get if they delay receiving Social Security until age 70.
Of course, this does mean you get benefits for less years, so thinking about the break-even point is key. When you delay claiming from 67 to 70, you're giving up three years of benefits in exchange for a larger monthly payment for the rest of your life. For most people, the break-even point is said to fall somewhere between ages 80 and 83.
Physicians may have a stronger case for delaying because they tend to live longer than the general population. A 2025 study published in JAMA Internal Medicine found that physicians experienced substantially lower age-adjusted mortality than both high-income workers in other professions and the general workforce. A longer life expectancy increases the value of a larger monthly benefit.
So, when would you consider collecting Social Security prior to the age of 70?
Delaying benefits may not be the right choice if:
You have a serious health condition that meaningfully shortens your life expectancy
You have an immediate income need and no other retirement assets to draw from
Your spouse has a significantly shorter life expectancy and your benefit won't function as a survivor benefit
You have other personal or financial factors that make earlier claiming more appropriate
How spousal and survivor benefits factor into the decision
Many physicians focus exclusively on their own retirement income and forget that Social Security is also a family planning decision. A spouse may be eligible to receive:
Their own Social Security benefit
Up to 50% of your FRA benefit as a spousal benefit
If you die first, a surviving spouse may be eligible to receive up to 100% of your benefit. This is particularly important in households where one physician earns substantially more than their spouse or where one partner has a limited Social Security earnings history. Delaying benefits doesn't just increase your monthly payment; it may also increase the amount your spouse receives for the rest of their life. Before making a claiming decision, run several scenarios that include both spousal and survivor benefits.
The tax implications of claiming social security as a high earner
Most physicians entering retirement have other sources of income. Between pension distributions, required minimum distributions (RMDs) from tax-deferred retirement accounts, investment income, and possible part-time clinical work, taxable income in retirement can remain substantial. As a result, Social Security benefits are often taxable. Up to 85% of Social Security benefits can be subject to federal income tax when your combined income exceeds certain thresholds. Many retired physicians will likely exceed those limits.
Social Security should be viewed as part of a broader retirement income strategy, so even if you’re retiring early and don’t have much income during those years, you may want to wait to claim your benefits. The years between retirement & required minimum distributions can be valuable tax-planning years, and many doctors elect to engage in tax strategy in regards to Roth conversions, capital gains, IRA withdrawals, charitable giving, and Medicare-related income thresholds. Factors such as Roth conversions, withdrawal sequencing, and RMD planning can all affect how much of your Social Security benefit you actually keep. This is one area where working with a CPA or financial advisor who understands physician finances can be particularly valuable.
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What about physicians who are still working after 62?
If you claim Social Security before your FRA and continue working, the SSA applies what's called the “Earnings Test.” In 2026, if you earn more than $24,480 per year before reaching FRA, the SSA withholds $1 in benefits for every $2 earned above that threshold. Of note, this is earned income, not investment income, pensions, annuities, or interest.
The rules become less restrictive during the year you reach your FRA, and the earnings test disappears completely once you've reached it.
As you can see, for most physicians who are still actively practicing, claiming early will greatly diminish the benefit, while also locking you into a permanently lower monthly payment. If you're still seeing patients in your 60s, waiting is usually the better strategy.
Part-time practice in early retirement can work in your favor
Many physicians don't make a clean break from medicine. A growing number are shifting to part-time clinical roles, locum tenens work, or consulting arrangements in their early 60s. This approach can actually be advantageous from a Social Security standpoint.
If those part-time earnings are high enough to replace one of your zero-income or low-income years in the 35-year calculation, your projected benefit increases. Meanwhile, delaying your claim continues to build those 8% annual credits. You're improving your Social Security benefit from two different directions. While this probably shouldn't be the reason you continue working, it's a factor worth considering if you're planning a gradual transition out of medicine.
It’s also important to note that you can choose to use your Medicare benefits even if you delay your Social Security election time.
Build your decision around these key variables
There's no universal answer to when a physician should claim Social Security. The decision often becomes much clearer when you work through these five factors:
How is your health? If you have excellent health and a family history of longevity, delaying may make more sense.
What does your spouse's situation look like? Survivor and spousal benefits can significantly affect your household's long-term income.
Do you have other retirement assets? Can you comfortably fund retirement between ages 62 and 70 without Social Security?
What's your tax strategy? How will claiming benefits interact with Roth conversions, RMDs, and other retirement income?
How many years have you worked? If you don't yet have 35 years of substantial earnings, additional years of work may increase your benefit, so you may not want to claim benefits while working and lock in on the lower benefit.
Conclusion
For most physicians who have been saving aggressively for retirement and/or have access to pensions or significant cashflow in their 60s, it’ll make sense to delay when they start claiming Social Security. That said, Social Security payout strategies aren't one-size-fits-all, and physicians often have unique considerations that standard retirement advice may not address. Your delayed entry into the workforce, higher earnings, tendency to be the higher earning spouse, retirement account balances, and taxes all influence the ideal age to start claiming benefits in your situation..
Before making a decision, run several scenarios using the SSA's retirement calculators or a comprehensive retirement planning tool. Even better, consider working with a fee-only financial advisor who specializes in physician finances. This is one financial decision that's worth taking the time to get right.
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