If you have yet to draw Social Security, you might be wondering if you should begin taking your benefits at age 62 or wait until later. Various articles on the topic have several differing opinions. Like everything in the financial planning realm, our answer is - "it depends".

Full retirement age (also called "normal retirement age") had been 65 for many years. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959. Starting benefits before your full retirement age will mean a reduction in your monthly benefit.

If we look at it from a numbers perspective only, you have to consider how long you think you will live. The typical "break-even" period is 12 to15 years in which case you would have to live longer than age 77 to reap the benefits of waiting.

As an example:

Draw benefits:

At age 62 x $1,600/month

= 15 years to age 77 = $288,000 total received

At age 66 x $2,175/month

= 11 years to age 77 = $287,100 total received

While this analysis is a useful starting point, other factors must be considered in determining when to begin drawing Social Security. If your only option to make up the income needed is to begin taking significant taxable withdrawals from a tax deferred account, such as your IRA or 401(k), starting Social Security benefits early may make more sense. Other considerations would be poor health, your earnings if you are still working to avoid the penalty prior to full retirement age, and other tax considerations.

Social Security itself has many aspects to consider, but it is only one aspect of developing a plan to maximize the chances of meeting your retirement goals. Your planner will help you evaluate your options and come up with a game plan that is right for your situation.