Holding off on Social Security until 70 can increase payouts, but for some, waiting too long may backfire
Delaying Social Security benefits until 70 is often touted as a strategy to maximize lifetime income.
However, this path comes with trade-offs, including potentially dying earlier, needing to draw more heavily on your retirement savings while you wait, and the risk of future benefit cuts.
These concerns might explain why few people opt to wait for a bigger check. While economists generally recommend waiting, the reality is that most Americans don’t.
In 2022, about 10% of retirees claimed Social Security at age 70, 29% at 62 and 61% before reaching full retirement age. (1)
Here’s what you need to know about the perks and the pitfalls.
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The upside: Bigger checks, longevity insurance
When you delay claiming past your full retirement age (FRA), your Social Security benefits grow through “delayed retirement credits.”
For each full year you hold off after reaching this age, which is determined based on the year you were born and is fixed at 67 for those born in 1960 or later, 8% is added to your benefit until you turn 70.
According to the Social Security Administration (SSA), a lifetime high earner retiring in 2025 could expect to receive $2,277 a month more if they retire at 70 instead of 62, which is the earliest age the benefits become available. (2) And they could expect $1,090 more if they retire at 70 instead of the FRA.
Social Security is inflation-protected and guaranteed by the government, so delaying can serve as insurance against outliving your assets.
Read More: Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
The hidden risks: What conventional advice overlooks
Life expectancy: The argument for delaying assumes you have a reasonable life expectancy to recoup the “lost” benefits from earlier years.
Dying in your early 70s could render the delay a net loss; living into your 90s might make it worthwhile. For those with shorter life expectancies due to health issues, waiting could be risky.
Survivors, such as spouses, receive a portion of the benefit, but not necessarily all of it. The exact share depends on your delayed retirement credits and primary insured amount. And if you die beforehand, the credits you would have earned later go unused.
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