There's technically no such thing as the "latest age" to claim Social Security. Once you turn 62, you can file for benefits at any time.
But there's no financial incentive to delay your filing past the age of 70. So, generally speaking, 70 is considered the latest age to claim benefits, even though you can easily file for Social Security at 71, 72, or beyond, should you so choose.
Now, as a refresher on how claiming benefits works, you're entitled to your full monthly Social Security paycheck based on your earnings record once you reach full retirement age (FRA), which is 67 for anyone born in 1960 or later.
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You're allowed to sign up for Social Security as early as age 62, and it's a very popular age to file for benefits. But claiming Social Security ahead of FRA will result in a reduced monthly benefit for life.
By contrast, each year you delay your Social Security filing past FRA, your monthly benefit gets an 8% boost. And that boost is a permanent one.
So if you're looking at an FRA of 67 and sign up for Social Security at age 70 instead, guess what? You've just given yourself a 24% raise for life.
Of course, claiming Social Security at age 70 might mean working until then. And that may not be ideal.
Delaying your filing until age 70 also means taking the risk of shorting yourself on lifetime Social Security income by waiting longer to receive your first check. But despite these drawbacks, there's a really strong argument for claiming Social Security at 70 that you shouldn't overlook.
When you're hoping for guaranteed income
The more money you manage to save for retirement, the more income you might enjoy during your senior years -- at least in theory. The problem, though, is that you never know when your savings might run out.
If the stock market underperforms for many years and your investments lose a lot of value, it might limit the extent to which you're able to take annual withdrawals from your nest egg. And you might also end up running out of savings in your lifetime despite your best efforts to withdraw from your nest egg conservatively.
The beauty of claiming Social Security at age 70 is that once you lock in that higher monthly benefit, it's yours for life. It doesn't matter whether you live until age 79 or 84 or 92. No matter how many years your retirement lasts, you're guaranteed that higher monthly paycheck. The same cannot be said for your nest egg or any other income source.
In fact, let's say you own a rental property and rely on it for monthly income in retirement. You never know when you might struggle to find a tenant or be forced to lower the rent you charge due to reduced demand in your area.
Social Security, on the other hand, will pay your monthly benefit for life. And that's why it's worth making the sacrifices necessary to lock in a higher monthly benefit.
