retirement

Age 70 Is Not The Best Time to Claim Social Security. Here's Why

Kristin Hitchcock

Published: March 17, 2024 12:30 pm

Choosing when to claim Social Security is like walking on a tightrope. One misstep and…well, let’s just say retirement security might look much different than you envisioned. Many face this precarious position when deciding when to claim Social Security. 

While waiting until you’re 70 maximizes your monthly benefit, it’s a gamble that could leave you with less overall income, especially if you don’t live a long life. 

Feeling a little dizzy? Don’t worry. This article offers a safety net. We’ll guide you through the tightrope of when to claim Social Security (Spoiler: it isn’t 70). Besides aiming to only maximize your benefits, we’ll explore other strategies to make the most of your Social Security benefits. 

Here at 247Wallst, we’ve written extensively on Social Security. We have a whole hub page dedicated to it, where we collect all of our articles. You can trust us to guide you through the complicated tightrope walk and when to claim. 

So, take a deep breath, step off the ledge of uncertainty, and let’s start by exploring why waiting for that seemingly “golden age” of 70 might not be the best move for everyone.

Risks of Delaying Social Security

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While a larger monthly check tempts many, claiming Social Security at 70 presents several challenges. Waiting to claim until you’re 70 is akin to navigating a tightrope – there is a lot that can go wrong. 

Let’s delve into some of the potential pitfalls of waiting until 70:

The Uncertainty of Life

We’d all like life to go exactly as we have planned. However, this is rarely the case. Life expectancy is a gamble. Harvard has reported that life expectancy has been declining in the U.S. for decades. Currently, the average life expectancy in America is only 77 years. For men, it’s even lower at 74.5 years. 

That’s not many years to enjoy your retirement if you wait until you’re 70. 

Delaying benefits to age 70 means forgoing years of retirement. Plus, even though your benefits increase monthly after you reach full retirement age, you still miss out on a monthly check. If you don’t live a long life, you may miss out on a substantial portion of the total benefits you’re entitled to receive. 

The Value of Guaranteed Income

Social Security after you retire is a guaranteed income. You get it each month, period. As you age, unexpected medical bills and unexpected expenses can arise. Social Security works as a safety net through your golden years if you claim it. 

If you decide to delay retirement, there is always a chance that you will become sick before 70. You could miss out on weeks or even months of work. It’s best to have a steady income stream ready before that happens. Trying to apply for Social Security benefits from a hospital bed can be challenging. 

You can claim disability benefits, which is a different type of Social Security in some cases. However, this is often a long, drawn-out process. We explored the differences in the three types of Social Security in a different article. 

The Impact on Other Plans

Retirement is a large retirement puzzle. Claiming Social Security should only be a small piece of your retirement plans. Potentially, delaying your retirement can throw off the balance of all your other plants. 

For example, if you delay claiming Social Security, you may need to draw more from your other retirement savings. If you continue working after full retirement age, you may even have more money than you can reasonably spend in your lifetime. There is little reason to keep working when you’ve already met your retirement needs.  

Alternatives to Claiming at 70

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Stepping off the precarious tightrope of waiting until 70 doesn’t mean sacrificing a comfortable retirement, though. There are lots of alternative strategies that can help you find your footing.

Understanding Your Full Retirement Age (FRA)

Your full retirement age is when you’re eligible for your full Social Security benefit. This age isn’t the same for everyone; it depends on your birth year. You can figure out your full retirement age on this official Social Security chart. 

Knowing your FRA is crucial, as it impacts how much you’ll get depending on your age. You can claim benefits as early as 62, no matter when you were born. However, for every month you claim before your full retirement age, your benefit will be permanently reduced. 

The good news is that you will receive your complete benefits if you claim at your full retirement age. Your benefits do increase if you wait past the monthly benefit age. However, we recommend not planning for this extra. We have a full guide on how Social Security works if you want more of the nitty-gritty details. 

Considering Your Individual Circumstances

There is no one-size-fits-all approach when claiming Social Security (you never know when the tightrope will wobble). The best age for you depends on several factors that influence the best path for you:

• Health: If you have a health condition that might shorten your lifespan, claiming earlier can ensure you receive more of the benefits you’re entitled to. In some cases, you may even want to claim before your full retirement age. 
• Life Expectancy: You can never know how long you’ll live. However, your family history, sex, and overall health can offer you clues about your potential life expectancy. Men tend to live shorter lifespans than women, for instance. 
• Other Retirement Income: Your other retirement income will also play a role in when you retire. If you have plenty, you may be able to retire earlier, even with the reduced Social Security benefits. A diversified retirement income stream can provide you with extra flexibility when deciding whether or not to claim Social Security. 

Exploring Spousal Benefits

Don’t forget your partner! If you’re married, your partner’s potential benefits should also play a role when you choose to begin receiving Social Security. Ensure you understand your spouse’s retirement age and work history, as these will impact their benefits and may differ from yours. 

Coordinate your claiming strategy so that you can maximize your total income.