70 Isn’t Always the Optimal Social Security Claiming Age. Here’s When the Math Stops Working

There’s a reason so many financial experts recommend delaying Social Security as long as possible.

You’re eligible for your monthly benefits based on your earnings history without a reduction once full retirement age (FRA) arrives. That age is 67 if you were born in 1960 or later. But for each year you delay your claim beyond FRA, your Social Security checks become eligible for a permanent 8% boost.

Now this incentive runs out once you reach age 70. But with an FRA of 67, you could give your monthly checks a 24% increase in total.

For context, if you’re eligible for a $2,000 monthly benefit at 67, filing at age 70 instead could leave you with $2,480 per month — for the rest of your life. Larger monthly checks could help reduce your financial stress and give you more leeway to do the things you love.

But while it can make sense to delay Social Security until age 70, the math only works out in your favor if you live a decent lifespan. If you don’t expect to do that, then filing earlier is a better choice.

Why your life expectancy matters

Delaying Social Security until age 70 means giving up on years of checks. And it’s not just three years of missing benefits you’re looking at.

The earliest age to claim Social Security is 62. Doing so will result in reduced benefits for life. But if you don’t expect to live a long life, filing early could put more money in your pocket in total from Social Security compared to filing later.

To put it another way, if you don’t expect a longer life, then filing for Social Security at 70 may not make sense financially. Despite getting more money each month, you could end up with a smaller lifetime paycheck.

Here’s how the math might work if you live until age 75 and you’re eligible for a $2,000 monthly benefit at 67:

• If you file at 62, your lifetime Social Security benefit will be $218,400.
• If you file at 67, your lifetime Social Security benefit will be $192,000.
• If you file at 70, your lifetime Social Security benefit will be $148,800.

So all told, in this case, claiming Social Security at 70 leaves you with a $43,200 shortfall compared to filing at 67 and a $69,600 shortfall compared to filing at 62.

Make an educated guess

Of course, the tricky thing is that in your early 60s, you can’t exactly see into the future and predict how long you’ll live. But your health at the time and family history can offer clues.

If you’re already managing multiple health conditions and your parents passed away in their mid-70s, you may want to err on the side of claiming Social Security early. But if you’re in great health and have parents still alive in their late 80s or beyond, then delaying your claim could pay off.

All told, there are plenty of people who can benefit from claiming Social Security at 70. But it’s not a given that the math will work out in your favor if you delay. It’s important to recognize that before locking yourself into a decision that may not be the best thing for you.

Contact [email protected] for any questions or corrections.