'It's a wait-and-see situation': I'm 63 and diagnosed with lymphoma. Should I take my Social Security next year?

By Quentin Fottrell

'My plan is to continue working as long as I'm able to do so and invest my Social Security benefits while I'm still earning a paycheck'

"It may remain stable, or it could progress, so for now, it's a wait-and-see situation." (Photo subject is a model.)

Dear Quentin,

I'd like your thoughts, please. I'll be turning 64 next January and have been thinking about starting my Social Security benefits then. I was diagnosed with lymphoma. It may remain stable, or it could progress, so for now, it's a wait-and-see situation. Am I overlooking anything or missing something important in considering this strategy? I'd appreciate any thoughts or advice.

My plan is to continue working as long as I can and invest my Social Security benefits while I'm still earning a paycheck. I understand there's a limit to how much you can earn before reaching full retirement age without affecting your benefits, and I believe I'd be earning around that limit.

When I'm 64

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

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Given the uncertainty surrounding your diagnosis, it's smart to regularly evaluate your financial security.

Dear (Almost) 64,

I'm sorry you're dealing with such a serious diagnosis on top of what is already a tricky decision. Your plans are realistic and optimistic, which is a good combination. If you are the lower-earning spouse, I see no problem with taking your Social Security in 2027. There is one caveat: if you claim at 64, applying for disability benefits later may not be an option if your lymphoma progresses. Before you decide, ask Social Security or a financial adviser how claiming early would affect that.

Here's the trade-off: If you live well into your 80s, delaying benefits will result in higher lifetime monthly payments. Because a survivor's benefit is based on the deceased spouse's claiming age, a delay by the higher earner also means a larger benefit for the surviving spouse. If your health deteriorates, claiming earlier means you will enjoy your benefits now. Given the uncertainty surrounding your diagnosis, it's smart to regularly evaluate your financial security.

The earnings test is a big issue. Before full retirement age, Social Security withholds $1 in benefits for every $2 you earn above the annual limit ($24,480 in 2026). You say that you are currently earning "around that limit," and you also write that you make a good living. If you earn well above it, most or all of your benefits could be withheld, leaving no checks to invest. Social Security recalculates your benefits at retirement age so that money withheld is not lost.

You'll also have to account for any taxes on your investments. The Internal Revenue Service calculates tax due on your Social Security based on your "combined income," which consists of your adjusted gross income, tax-exempt interest, and half of your annual Social Security benefits. So up to 50% or as much as 85% of your Social Security benefits may be subject to federal income tax. Stacking benefits on top of a good salary makes that more likely.

If you live well into your 80s, delaying benefits will result in higher lifetime monthly payments.

When you reach full retirement age (67 for you, given your age), the Social Security earnings test no longer applies, so working won't reduce your monthly benefit. And while your Social Security benefits may be taxable on your federal return, some states do not tax Social Security benefits. So, given that you are still working and earning a good income, I understand your idea of investing your checks.

For married couples filing jointly, Social Security benefits typically aren't taxable at the federal level if your combined annual income is $32,000 or less. Between $32,000 and $44,000, up to 50% of benefits may be taxable; above $44,000, up to 85% may be taxable. These thresholds apply to combined income. See the IRS's Social Security benefits guidance and use Box 5 of your SSA-1099 when preparing your tax return.

If you keep working and collect Social Security, being taxed on your Social Security can sting, given that you are already paying 6.2% of your wages toward Social Security, in addition to the 6.2% that your employer contributes. That's because it goes toward a collective fund so Americans who can no longer work and/or wish to retire have a source of income. A tax adviser would be best able to run through all the scenarios.

Predicting the math

Your Social Security benefit at 64 would be reduced by 20% compared with your FRA. So let's assume that your benefit at age 64 is $2,000 a month; your FRA benefit at 67 would be close to $2,500 per month. Delaying from 67 to 70 increases the retirement benefit by 24%, before cost-of-living adjustments (COLAs). If your investments had a hypothetical 10% annual return before inflation, investing your checks might look attractive.

Let's take two scenarios: one with a 10% return and another with a more modest 7% return. If you invested your $2,000-a-month Social Security at 64, you could accumulate a lot in contributions, growing to roughly $80,000 at 7% or $83,500 at 10%, before taxes and fees. The exact total depends on the timing of your deposits, compounding, taxes and fees. The market rarely runs smoothly, and some years see a negative return, so nothing is guaranteed.

Obviously, waiting to collect your Social Security until 67 or later provides no accumulated investment, but your benefit would be higher by about $500 a month for life. Without investing, that extra $500 takes about 12 years to make up the $72,000 head start, so the break-even is roughly 79. If you claim at 64 and invest the benefits, the break-even point versus waiting until age 67 depends on your benefit, returns, capital-gains taxes, dividends, and how long you live.

Without investing, it would take about 12 years to make up the $72,000 head start.

A few reminders about the rules of survivor benefits: A surviving spouse who has reached FRA can generally receive up to 100% of their deceased spouse's benefit. You or your husband would not ordinarily receive both full retirement benefits added together. Instead, the survivor generally receives their own benefit or an eligible survivor benefit, with the applicable rules determining the amount payable. This is important if you are the higher earner.

Your diagnosis raises two other points. First, claiming reduced retirement benefits early could leave you worse off. If you can no longer work, you may qualify for Social Security Disability Insurance, which pays your full retirement age benefit without reductions that come from claiming early. (Some lymphomas are on Social Security's Compassionate Allowances list.) Second, Medicare begins at 65, with the Part B premium deducted from your Social Security.

Even taking your diagnosis into account, I wouldn't count out a long life just yet. The 10-year survival rates for lymphoma vary based on whether it is Hodgkin lymphoma or non-Hodgkin lymphoma, as well as the stage, your age, and the subtype. Survival statistics are very general and only give a glimpse into lymphoma mortality rates. Your oncology team is best placed to discuss your situation, assuming you want to factor that into your decision-making.

So what should you do? The fact that you're asking the question suggests that you're inclined to take your benefits earlier and keep working. Compare your actual Social Security estimates at 64, 67, and 70, and check how the earnings test will impact you for the years you plan to claim. If you are the higher-earning spouse, you may wish to wait. If your husband is the higher-earning spouse, he may wish to wait before claiming to maximize survivor benefits.

It's also not an apples-to-apples comparison. A delayed benefit provides you with a guaranteed income for life that is also adjusted for inflation. Investment returns are, as we know, uncertain.

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More columns from Quentin Fottrell:

'I don't want to die on the sales floor': I'm 67 and earn $19.50 an hour at a big-box store. When can I finally retire?

'I'm never selling': I'm 47 and buy bitcoin with every dollar I earn. Am I crazy?

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-Quentin Fottrell

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10-16-26 1045ET