Social Security is a critical part of retirement planning for millions of Americans. Deciding when to start receiving Social Security benefits can be a complex decision that depends on a variety of factors, such as your financial situation, employment status, and health.

One of the most important factors to consider when deciding when to start receiving Social Security benefits is the impact on your monthly benefit amount. As a general rule, starting benefits before your full retirement age (FRA) will result in a reduced benefit amount, while delaying benefits until after your FRA can result in an increased benefit amount.

Here is a table that illustrates the impact of timing on Social Security benefits:

Let's take a closer look at how the timing of Social Security benefit withdrawals can affect the amount of your monthly benefit:

• Starting benefits at age 62: If you start receiving Social Security benefits at age 62, your benefit will be reduced by about 30% compared to what you would receive at your full retirement age. This can be a good option if you need the income early in retirement, but keep in mind that you will receive a lower monthly benefit for the rest of your life.

• Starting benefits at full retirement age: If you start receiving Social Security benefits at your full retirement age (which ranges from 66 to 67 depending on your birth year), you will receive your full benefit amount. This can be a good option if you don't need the income early in retirement and want to maximize your monthly benefit amount.

• Delaying benefits until age 70: If you delay receiving Social Security benefits until age 70, your benefit will be increased by about 8% per year beyond your full retirement age. This can be a good option if you can afford to delay receiving benefits and want to maximize your monthly benefit amount.

It's important to note that the decision of when to start receiving Social Security benefits is a personal one and depends on individual circumstances. Other factors, such as your retirement savings, tax situation, and health, should also be considered when making this decision.

Working with a financial coach or advisor can be incredibly helpful when making decisions about Social Security and retirement planning. A financial coach can help you create a retirement plan that takes into account all of your income sources, including Social Security, and help you make informed decisions about when to start receiving benefits based on your unique financial situation and goals.

In addition to helping you make decisions about Social Security, a financial coach can also assist you in creating a budget, managing debt, and making informed investment decisions. Working with a financial coach can be a valuable investment in your financial future, helping you achieve your retirement goals and live the retirement you deserve.