A 63-year-old diagnosed with lymphoma is weighing whether to claim Social Security next year. The reader plans to keep working as long as health permits. Any benefits received would be invested while paychecks continue.
Social Security retirement benefits can be claimed starting at age 62. Claiming before full retirement age permanently reduces the monthly payment. Full retirement age is 67 for people born in 1960 or later.
The reader’s diagnosis introduces uncertainty that standard planning cannot resolve. Lymphoma treatment can disrupt work schedules and income. A wait-and-see approach is reasonable when health outcomes remain unclear.
Working while claiming benefits triggers the retirement earnings test before full retirement age. In 2024, earnings above $22,320 reduce benefits by $1 for every $2 earned. That rule applies until the claimant reaches full retirement age.
The earnings test ends at full retirement age. After that point, beneficiaries can earn any amount without a reduction. Delaying a claim past full retirement age increases monthly payments by 8% per year up to age 70.
Delaying also boosts survivor benefits for a spouse. A higher lifetime benefit can protect a surviving partner. That factor matters when serious illness affects one member of a couple.
Claiming early provides cash now but locks in a smaller payment for life. The reader’s plan to invest benefits could offset some of that reduction. Investment returns, however, are not guaranteed to beat the delayed-claim increase.
A diagnosis of lymphoma does not automatically shorten life expectancy. Many forms of the disease are treatable and allow years of continued work. Individual prognosis depends on the specific type and stage.
Financial advisers often suggest filing once the earnings test no longer applies. That occurs at full retirement age for most workers. Claiming earlier only makes sense if cash is needed immediately.
The reader should coordinate any decision with a Social Security specialist. Rules for disability benefits may also apply during treatment. A lymphoma diagnosis can qualify for expedited disability processing in some cases.
No single answer fits every patient. The choice depends on income needs, health trajectory, and spousal coverage. Reviewing all options with a professional remains the most reliable path.
