Why a 65-Year-Old With $2 Million Should Claim Social Security at 62, Not 70

Picture a 65-year-old who just retired with a spouse, no pension, and roughly $2 million in a 60/40 portfolio. The mortgage is paid. The kids are grown. The question keeping him up at night is the one almost every advisor answers the same way: should he file for Social Security now, wait until full retirement age (FRA) at 67, or hold out until 70 for the biggest possible check?

For this household, the default advice to wait until 70 is probably the wrong call. A retiree posing this same question on a popular finance forum put it bluntly: he had enough savings to fund a comfortable retirement without Social Security, so why was every advisor telling him to delay a benefit he had already earned?

That instinct deserves more credit than it usually gets.

The math that flips the conventional advice

Start with the numbers. His primary insurance amount (PIA) at age 67 is $2,840 a month. Claiming now at 65 trims it to roughly $2,462 a month, or about $29,544 a year. Waiting until 70 lifts it to $3,522 a month, roughly $42,264 a year, because delayed retirement credits add 8% per year for every year of delay between FRA and age 70.

On paper, the larger check looks like an obvious winner. The catch is the breakeven. Claiming at 65 generates roughly $147,000 before age 70 even arrives. For the bigger benefit to catch up, he needs to live to about age 81 or 82. According to the CDC’s most recent mortality data, a 65-year-old man in the U.S. can expect to live about 18.4 more years, reaching around 83. He clears breakeven, but only barely, and only if he hits the median.

Now layer in the portfolio. Every dollar Social Security pays is a dollar he does not have to pull from his investments. If he claims now and leaves $30,000 a year compounding at a long-run 60/40 return of about 6.5%, that first year of preserved withdrawals grows to roughly $41,000 by age 70 and $56,000 by 75. The delayed credit, by contrast, grows only at annual cost-of-living adjustments (COLAs). The 2026 Social Security COLA is 2.8%, and while the SSA reports that the 10-year average COLA has been about 3.1%, that figure still trails the long-run portfolio return by a wide margin. The 10-year Treasury is currently yielding approximately 4.7%, a number that compounds in his favor if he stays invested. The opportunity cost of delaying is real and measurable.

How the rest of the picture connects

Social Security is also a tax event. Once he claims, up to 85% of the benefit becomes taxable when combined provisional income crosses $44,000 for a married couple filing jointly. That exposure can be managed by drawing more from taxable and Roth accounts and less from the traditional IRA during the years before required minimum distributions (RMDs) begin at age 73. One more wrinkle worth noting: the One Big Beautiful Bill Act, signed into law on July 4, 2025, created a new senior deduction of up to $6,000 per qualifying individual age 65 or older, effective through 2028. A married couple where both spouses qualify can claim up to $12,000 combined, though the benefit phases out for joint filers with modified adjusted gross income above $150,000. For many retirees, that deduction meaningfully shrinks the federal tax bite on Social Security income.

Claiming earlier also keeps portfolio principal intact, which matters in two ways most retirees overlook. First, the portfolio is heritable. Social Security disappears with the claimant and cannot be passed to heirs. Second, a larger balance is the cushion that absorbs a market selloff early in retirement, when sequence-of-returns risk is at its worst.

Consumer sentiment recently fell to 49.8, near recessionary territory, and consumer prices rose 3.8% annually in April 2026, the highest reading since May 2023, according to the Bureau of Labor Statistics, with core inflation holding at 2.8% and real wages falling 0.3% over the same period. Locking in a guaranteed, inflation-adjusted check now reduces how much he has to sell into a shaky market, and it provides an income floor that holds its value as prices climb.

One caveat matters: if he is the higher earner and his spouse is likely to outlive him, delaying his benefit raises her survivor check for the rest of her life. Coordinating the two claims typically beats optimizing his benefit in isolation.

What to actually think through

1. Weigh longevity honestly. Family history of living into the 90s tilts toward waiting. Average or below-average health tilts the other way. The breakeven age is the whole game.
2. Decide what the portfolio is for. If it is meant to be spent down by him and his spouse, claiming earlier and letting savings compound is hard to beat. If it is meant to be left to heirs, the case for early claiming is even stronger, since Social Security cannot be inherited.

The hardest mistake to undo here is treating a rule of thumb built for retirees without savings as if it applied equally to someone with $2 million in the market. His situation is different, and his answer can be too. A conversation with a fiduciary planner who runs the numbers on his actual life expectancy, tax bracket, and spousal benefit will be worth far more than any general guideline.

Editor’s note: This article was updated to reflect the CDC’s latest 2024 mortality data showing a 65-year-old man can expect to live about 18.4 additional years (up from 18.2 in the prior data brief), the current 10-year Treasury yield of approximately 4.7%, the SSA’s reported 10-year COLA average of about 3.1%, and clarified that the One Big Beautiful Bill Act’s senior deduction is $6,000 per qualifying individual age 65 or older (up to $12,000 for a qualifying couple), phasing out for joint filers above $150,000 in modified adjusted gross income.

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