Claiming Social Security at 70 Isn’t the Great Deal You Think it Is. Here’s Why

One of the nice things about Social Security is that you’re not locked into filing for benefits at one specific age. Rather, you can choose when to take benefits based on your personal financial needs and situation.

The earliest age to claim Social Security is 62. From there, waiting to sign up can result in larger monthly benefits — at least until age 70.

Once you turn 70, your Social Security benefits can’t grow anymore (unless you’re still working and your wages give them a lift), which is why 70 is often called “the latest age” to file. Of course, nobody is going to force you to take benefits at that point. But there’s nothing to be gained by waiting.

You might assume that claiming Social Security at 70 is a move that makes sense for you off the bat. But here’s why it may not be the great deal you think it is.

It’s a matter of looking at the big picture

Claiming Social Security at 70 could lead to larger monthly benefits for life. And there lies the appeal.

Imagine you’re eligible for a monthly benefit of $2,000 at age 67, which is full retirement age (FRA) for anyone born in 1960 or later. If you sign up at the earliest age of 62, you’ll end up with a monthly benefit of about $1,400 instead.

However, if you delay your claim until age 70, you’re looking at a monthly benefit of $2,480. That’s an extra $5,760 per year compared to filing at FRA.

At first, taking benefits at age 70 might seem like a no-brainer. But you have to remember that while signing up for Social Security at 70 might boost your monthly income, it won’t necessarily raise your lifetime Social Security benefit.

Whether a claim at age 70 results in more lifetime Social Security income depends on how long you end up living. And that’s not something you can know ahead of time.

But if you’re not confident that you’ll live a long life, then you may want to claim Social Security at an earlier age than 70. And if you think you’ll live a short live, filing at 62 could actually make the most sense.

Talk through your options with a professional

Your Social Security filing age will help determine how much monthly income the program gives you throughout retirement. So it’s important to approach that decision with confidence.

You may find that you’re comfortable waiting until your 70th birthday to take benefits. Or, you may decide you don’t want to run the risk of shorting yourself on lifetime income, and that filing sooner makes sense.

Since it’s a tough decision to arrive at, one thing you may want to do is consult a financial advisor. A professional can look at your total retirement income picture and offer guidance on when to take benefits based on your specific situation. They can also help you run the numbers to see what sort of hit or boost to your benefits you’re looking at by filing at various ages.

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