Many people opt to file for Social Security at age 62 because it's the earliest age at which to sign up. But if you don't wait until full retirement age (FRA) to claim benefits, yours will be reduced on a permanent basis. FRA is either 66, 67, or somewhere in between, depending on your year of birth.
There's also the option to delay your Social Security filing past FRA. For each year you do, up until age 70, your benefits will get an 8% boost that remains in effect for the rest of your life.
It's easy to see why the idea of a higher monthly benefit might appeal to you, so you may be inclined to delay your filing until the age of 70. But if the following signs apply to you, you may want to reconsider and instead claim Social Security at an earlier age.
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1. Your health is poor
Filing for Social Security at age 70 might boost your income from the program on a monthly basis. But that doesn't guarantee that you'll get more income from Social Security on a lifetime basis. And the younger you think you'll pass away, the less a delayed filing makes sense.
Many people simply can't predict their life expectancy. But if you have a host of health problems going into retirement, then logic generally dictates that you may not live as long as someone much healthier. And if your health issues are severe enough, it's a sign that an earlier Social Security filing might make more sense for you.
2. You don't have a great family history of longevity
Having parents and grandparents who passed away at a fairly young age doesn't guarantee that you won't live well into your 80s, 90s, or beyond. But do you really want to take that chance?
If not, then you may want to claim Social Security at FRA rather than wait. You may even want to sign up for benefits before FRA.
3. You're utterly miserable at your job
For many people, filing for Social Security at age 70 means having to work until age 70. If you have savings to tap, this may not be the case. But if your ability to delay Social Security hinges on remaining at your job, and you hate your job, then filing at 70 may not be your best bet.
Sticking to a job you hate could impact your mental and physical health. While it's one thing to tough things out on the job front when you're in your 40s and 50s, by the time your 60s roll around, you may be flat-out exhausted in every sense of the word. In that case, it could make more sense to claim Social Security at an earlier age and escape a really bad job situation.
There are certainly advantages to claiming Social Security at age 70 and locking in a higher monthly benefit for life. But if the above scenarios apply to you, then filing at 70 may not be your best move at all.
