Social Security filers get plenty of options for claiming their monthly benefits. You can opt to sign up at the earliest age of 62 if you're willing to accept a reduced benefit for what will generally be a lifelong basis.
Another option is to wait for full retirement age (FRA) to arrive and claim Social Security then. FRA is age 67 if you were born in 1960 or later, and it's when you're entitled to your full Social Security benefit based on your personal wage history.
But believe it or not, your options for claiming Social Security don't end at FRA. If you delay your filing past that point, you can snag an 8% boost to your monthly Social Security benefit up until the age of 70. And that boost will remain in effect for the rest of your life.
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Because of this, 70 is generally considered to be the latest age to file for Social Security. That doesn't mean you have to file at age 70. But there's really no financial reason not to if you haven't claimed benefits already.
Of course, claiming Social Security at age 70 means having to exercise a lot of patience. And it could also mean having to extend your career. But here's why it pays to go this route, even though it may not be the easiest.
How much financial peace of mind do you want?
The great thing about Social Security is that it pays you your monthly benefit for life. By contrast, you could sock away plenty of money in an IRA or 401(k) plan. But your nest egg is not guaranteed to last throughout your entire retirement. If the stock market does poorly, for example, your savings might run out on you in your late 70s, leaving you to struggle financially during your 80s and 90s.
But if you claim Social Security at age 70 and raise your monthly benefit in the process, you're guaranteed to receive that higher benefit for the remainder of your life. So even if you reach your late 90s and your nest egg is long gone, you'll have a more generous Social Security benefit to fall back on.
There's a lot of value in that -- and not just financially speaking. Knowing you'll be collecting the maximum Social Security benefit you can qualify for might give you more peace of mind as you're going into retirement, and while you're in the process of navigating it. That's a nice feeling.
Many seniors unfortunately spend much of retirement pinching pennies and worrying if they'll be able to cover their bills for the long haul. A higher Social Security benefit could easily mitigate those concerns of yours.
And that's why 70 really is the ideal age to claim Social Security, provided your health is in good shape going into retirement. If it isn't, you may want to consider an earlier filing age, as that might result in more lifetime income from Social Security for you. But if your health is great, or at least good, then it pays to push yourself to wait until age 70 to put in that Social Security claim.
