It’s a common question and one we all face eventually… when is the right time to begin collecting Social Security benefits. The answer is not the same for everyone, and will depend on your health, marriage status, financial situation, and other factors.

Full retirement age for Social Security depends on your year of birth. For those born between 1943 and 1954, full retirement age is 66 years old. For those born in 1955 or later, full retirement age gradually increases to 67 years old. If you start your benefits at your full retirement age, you receive your full benefit amount with no reductions.

Early retirement: You can begin receiving Social Security benefits as early as age 62, but there is a cost. Taking benefits early results in a permanent reduction in benefits for the rest of your life. For example, if you opt to take your benefits at age 62, but your full retirement age is 67, you will receive 25-30% less than if you had waited until age 67.

When might early retirement make sense? If you are in poor health which you believe may limit your lifespan, you may be better off taking your benefits early. Similarly, if you need immediate income, you may not be able to wait.

Delaying retirement is another option. You may choose to delay collecting benefits until age 70. For each year after full retirement age that you delay collecting your benefits, those benefits increase by about 8% per year.

When does delaying benefits make sense? Delaying benefits can be financially advantageous if you are in good health and expect to live beyond the average life expectancy. Delaying will enable you to collect the highest monthly benefit.

Other considerations: If you are married, you should consider both spouses’ benefits. In some cases it may make sense for one spouse to delay benefits. At the death of a spouse, the surviving spouse gets to choose the higher of the two Social Security payments as their own. This is one reason to consider whether one spouse should delay receiving benefits.

People who want to continue working after full retirement age can do so and still get full Social Security benefits. Those who claim benefits early, however, may have some benefits payments withheld if they continue working.

The bottom line: Choosing when to take Social Security benefits is a personal decision that hinges on a lot of variables, including: financial status, marital status, health, and personal goals. There is no one right answer for everyone. Here are some resources to help: