You're allowed to sign up for Social Security as soon as you turn 62. Knowing that, the idea of waiting all the years until your 70th birthday to file for benefits may not be so appealing.

But there's a big upside to claiming Social Security at age 70. So, while waiting isn't easy, you may decide that it's ultimately the right choice.

A person using a calculator.

Image source: Getty Images.

When you're worried about your savings running out

No matter how much savings you bring into retirement with you, there's always the risk that your nest egg will run out at some point. It doesn't matter whether you have $50,000, $500,000, or $5 million. There's no guarantee that your money will last as long as you live.

To be fair, though, if you're retiring with $5 million and plan to withdraw from your savings carefully, then you may be much less likely to run out of money than if you're retiring on a considerably smaller amount. But most people approaching retirement have a considerably smaller amount of money socked away for their senior years.

Northwestern Mutual reports that the average 60-something has a mere $112,500 saved for retirement. While that's just the findings of one source, it's fair to assume that many seniors are entering retirement with a relatively small amount of savings. If you're one of them, then it's especially important that you consider delaying your Social Security claim until age 70.

You're entitled to your full Social Security benefit at full retirement age (FRA), which is 66, 67, or somewhere in between, depending on your year of birth. Filing for benefits prior to FRA will shrink them for life in the process. But delaying your filing past FRA will have the opposite effect -- you'll get to boost your monthly Social Security income for life. And that could be a very good thing if your savings do end up running out.

It's all about peace of mind

Living a long life is a great thing. But it can also pose a financial challenge. It's easier to make a $500,000 nest egg last over 15 or 20 years than 25 or 30. But a good way to protect yourself financially in the event of a longer retirement is to lock in a higher Social Security benefit.

In fact, the No. 1 reason to claim Social Security at age 70 is the financial peace of mind that decision can give you. Knowing you're guaranteed a higher monthly payday for life could help you avoid stressing about money as you try to enjoy your retirement. So for that reason alone, it's worth being patient.

Of course, in many cases, delaying your Social Security claim until age 70 will mean having to work until age 70. If that's not desirable for you based on your current job, see if it's possible to find a different one.

Even if a different job doesn't pay quite as much, you may be able to dip into your savings to supplement your income for a few years until your monthly Social Security payments start coming in. But that way, you can set yourself up with a higher income stream for the rest of your days.