When should you start taking Social Security?

Did you know that choosing the wrong time to take Social Security could cost you thousands? As a Washington State employee, you have a unique advantage – your PERS, LEOFF, TRS, or SERS pension gives you more flexibility in this crucial decision than most Americans have.
Let me share a quick story. Recently I met with a prospective client, a long-time PERS 2 member working at the Department of Ecology. She was planning to take Social Security at 62, the earliest possible age. After we looked at her numbers together, she realized waiting until 70 would give her an extra $1,000 every month for life [2]. That's an extra $12,000 per year – money that could fund her grandkids' college funds or those dream vacations she'd been putting off.
As your fellow Washingtonian and financial advisor specializing in DRS retirement planning, I'm here to help you make this critical decision. Let's break down everything you need to know about Social Security timing.
Why Your DRS Pension Changes Everything
Here's what makes your situation special: Unlike most Americans, you have a guaranteed pension. This pension can be your bridge to larger Social Security payments later. Many of my DRS clients use their pension to delay Social Security, letting those benefits grow by 8% each year after full retirement age [2].
Think of it this way: Your pension is like having a reliable Toyota that gets you where you need to go, while Social Security can be your luxury car upgrade.
Your Three Main Options (With Real Numbers)
Let's look at what this means in dollars and cents. Say your full retirement age benefit would be $2,000 monthly. Here's how the numbers shake out [2]:

1. Early Bird (Age 62)
   • You'll get $1,400 monthly (30% reduction)
   • That's a permanent lifetime reduction
   • But you'll get payments for a longer time
2. Full Retirement Age (66-67, depending on birth year) [1]
   • You'll receive your full $2,000 monthly
   • No reduction in benefits
   • Works well with most DRS pension plans
3. Maximum Benefit (Age 70)
   • You'll get $2,480 monthly
   • That's a 24% increase over full retirement age [2]
   • Perfect complement to your DRS pension

The DRS Pension + Social Security Sweet Spot
Here's a strategy I often recommend to my Washington State clients: Use your DRS pension as your primary income source while letting your Social Security grow. Many of my clients find they can live comfortably on their pension plus some savings, allowing their Social Security to increase by that valuable 8% per year [2].
Healthcare Timing Matters Too
Here's something many advisors miss: While you can start Social Security at 62, Medicare doesn't kick in until 65 [2]. As a state employee, you have access to PEBB benefits after retirement, which could influence your timing decision. We need to factor in your healthcare coverage when planning your Social Security start date [3]. Health care expenses in retirement are one of the largest expenses that you will face in retirement.
Will Social Security Be There for You?
I hear this concern frequently. Recent surveys show that 72% of adults worry about the system running out of funding in their lifetime [4]. Here's the truth: Even in the worst-case scenario, if absolutely nothing is done to fix the system, Social Security would still pay about 79% of promised benefits [5]. Plus, as a state employee with a pension, you're better protected than most Americans against any potential changes.
Making Your Best Choice
Here's your action plan:

1. Calculate your monthly expenses in retirement
2. Add up your guaranteed income (pension + Social Security at different ages)
3. Consider your health and family history
4. Think about your spouse's benefits
5. Factor in your other savings and investments

The Bottom Line for Washington State Employees
Your DRS pension gives you options that most Americans don't have. Use this advantage! Don't just follow what your coworkers are doing – your situation is unique.
Remember my prospective client from the beginning? She decided to use her PERS pension as her bridge to age 70, maximizing her Social Security benefit.
Want to know exactly what this means for your situation? Let's talk about your specific numbers and create a plan that maximizes both your pension and Social Security benefits.
Sources:
 
[1] https://www.ssa.gov/benefits/retirement/planner/agereduction.html
[2] https://www.fidelity.com/viewpoints/retirement/social-security-at-62
[3] https://www.ssa.gov/pubs/EN-05-10147.pdf
[4] https://news.nationwide.com/adults-believe-social-security-system-needs-to-change/
[5] https://www.gao.gov/blog/there-are-options-reforming-social-security-action-needed-now

-Seth Deal