Once you turn 62, you’re allowed to claim Social Security at any time. The reason so many people file at 62 is simple: it’s the earliest point when benefits become available.
That said, claiming early comes at a cost. Waiting increases your monthly payout, which can be especially valuable if your retirement savings feel light and you expect Social Security to be a meaningful part of your long-term income plan.
You receive your full benefit once you reach full retirement age, which falls between 66 and 67 depending on your birth year. And if you delay past that point, the Social Security Administration boosts your benefit by 8 percent per year.
Those delayed-retirement credits don’t continue forever, though. There’s a cutoff, and knowing exactly when to file ensures you don’t miss out on additional income you’ve already earned.
When waiting no longer pays off
If you’re still working at 70, it may feel logical to keep postponing Social Security. But the delayed-retirement credits that increase your benefit stop accruing once you hit 70.
In other words, there’s no financial advantage to waiting any longer. The SSA won’t force you to file at 70, but since your benefit can’t grow beyond that point, there’s no upside to leaving money on the table.
Working full time also doesn’t block you from collecting benefits. You can earn a paycheck and receive Social Security at the same time. Before full retirement age, you’d be subject to the earnings test, which can temporarily withhold part of your benefit if your income exceeds the annual limit.
At 70, that earnings test disappears. You’re comfortably past full retirement age, so even a high salary won’t reduce your monthly Social Security payment. You can work, earn, and collect your full benefit simultaneously.
It’s important to know the rules
Social Security comes with a long list of rules, and some of them aren’t straightforward. Still, understanding how the system works is essential if you want to claim your benefits strategically.
Delaying your filing past 70 isn’t a smart move, because you stop earning benefit increases at that age. If you’ve already passed your 70th birthday and haven’t claimed yet, you may be eligible for up to six months of retroactive payments. For example, if you’re 70 and a half and file immediately, you can receive the benefits you would have started getting at 70.
Wait too long, though, and you risk permanently giving up money that should be yours. That’s why it pays to learn the rules and make an informed decision. It can also be helpful to work with a financial advisor who can guide your claiming strategy based on your personal income needs, savings, and long-term plan.
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