How Amex Employees Should Prepare for Taking Social Security

As an executive at American Express, you’ve built a strong financial foundation and have accumulated assets to produce retirement income. Social Security might feel like a small piece of the puzzle but the timing of when you claim it can have a significant impact on your retirement income and tax picture. So, when should you start?

The answer isn't one-size-fits-all. You will need to consider your own income needs, sources of income, assets, and even life expectancy.  If you have a spouse who is also eligible for benefits, then that should be factored into the decision as well.

Below, we explore the key factors to consider making an informed decision that supports your lifestyle and is properly coordinated with your long-term financial plan.

1. Know the Basics: Age 62 to 70 Window

You can begin collecting Social Security as early as age 62 and as late as age 70. Age matters: 

• Claim at 62: You’ll receive about 70-75% of your full benefit.

• Full Retirement Age (FRA): This is between age 66 and 67, depending on your birth year. Claiming at FRA gets you 100% of your benefit.

• Delay until 70: You earn delayed retirement credits, increasing your benefit by 8% per year past FRA.

Delaying often results in the most significant long-term gain, especially if you’re in good health and longevity runs in your family.

2. Maximize Household Benefits

If you’re married, your Social Security strategy isn’t just about your own benefit—it’s about your household benefit. For couples, one spouse might claim earlier while the other delays, increasing survivor benefits and smoothing cash flow.

 Executives with non-working or lower-earning spouses should also consider spousal and survivor benefits as part of a holistic claiming strategy.

3. Consider Your Longevity and Health Outlook

Given the longer life expectancy among executives with access to excellent healthcare, delaying benefits may be more advantageous. The break-even point - when the higher monthly benefit from delaying outweighs the missed payments from earlier claiming - is typically in your early 80s.

4. Tax Impact and Income Timing

At higher income levels, up to 85% of your Social Security benefit could be taxable. That means coordination with other income sources—such as the RSP, PRSUs, Stock Options or pensions—is essential.

 If you’re still working and claim benefits before Full Retirement Age (FRA), your benefits may be reduced due to the earnings test. In 2025, you lose $1 in benefits for every $2 earned over $22,320 (subject to annual adjustment). This is usually a strong incentive for executives to delay claiming until full retirement age or later.

5. Incorporate Social Security into Your Broader Wealth Strategy

Social Security is just one piece of a larger financial puzzle. The optimal claiming strategy should be coordinated with: 

• Retirement income plans

• Tax-efficient drawdown strategies

• Estate and legacy planning

Think of Social Security as your guaranteed income floor—how it fits with your investment income, and other assets can influence your optimal timing.

Final Thoughts

There is no universally “right” age to claim Social Security—but for American Express executives, delaying benefits often aligns best with long-term goals like asset preservation, tax efficiency, and spousal protection.

Need help modeling the best time to claim?I specialize in helping American Express employees evaluate their retirement options including Social Security benefits. To learn more, schedule your complimentary consultation today!