Claiming Social Security at 70 Instead of 67 Adds 24% to Every Check for Life
Your Social Security filing age locks in your monthly benefit forever, so getting it wrong costs you for the rest of your life. Before you pick a date, make sure you understand what it actually takes to pull off a…
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One of the most important decisions you’ll have to make for your retirement is figuring out when to claim Social Security. And the reason there’s so much riding on that decision is that your claiming age helps determine how much Social Security you get each month.
Once you turn 62, you can claim Social Security at any time. But if you don’t wait for full retirement age (FRA) to arrive, which is 67 if you were born in 1960 or later, your monthly benefits will be permanently reduced.
On the other hand, if you file at FRA, you’ll get the exact monthly benefit you’re entitled to based on your personal income history.
There’s also the option to delay Social Security past FRA. Each year you wait boosts your checks by 8% for life.
Once you turn 70, you stop getting credit for a delayed Social Security claim. But if your FRA is 67, filing at 70 allows you to score checks that are 24% higher on a permanent basis.
At first, that might seem like an optimal Social Security strategy. But you’ll need to make sure you can pull it off.
How to make a delayed Social Security claim happen
You may like the idea of claiming Social Security at 70 for larger checks. But one thing to realize is that to make that plan work, you’ll need to make sure you can cover your bills in the interim.
Now you could decide you’ll work until 70 and pay your expenses that way. But you don’t know if industry shakeups or health issues will force you to stop working sooner. So while continuing to work is obviously an option, you should also have a backup plan if you know for sure that 70 is your optimal Social Security filing age.
To that end, you could build a nest egg that allows you to take larger withdrawals during the second half of your 60s to cover your costs if you want to delay Social Security but are unable to keep working. You could also choose investments that will pay you on a regular basis, like bonds.
Dividend stocks or ETFs are another good choice if you’re looking to generate steady income. While dividends aren’t guaranteed the same way interest payments from bonds are, companies with a long history of paying dividends tend to uphold that practice.
Make sure a delayed claim is the smartest move for you
Delaying Social Security until age 70 could lead to a lot more money and stability throughout your retirement. But it’s also important that you set yourself up to be able to delay your claim that long.
While working should allow you to wait in theory, sometimes people are forced to stop working sooner than planned. If you have another means of supporting yourself, it could spell the difference between your Social Security strategy working versus needing to pivot and claim benefits at a younger age.
At the same time, recognize that claiming Social Security at 70 gives your checks a 24% boost on a monthly basis. But it doesn’t guarantee more lifetime income from Social Security.
If you don’t end up living into your 80s, a delayed claim could put less money from Social Security in your pocket in total. So be sure to account for your health and family history when making your filing choice.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
