There's a reason seniors are advised to choose a Social Security filing age carefully. The age you land on, combined with your personal wage history, will determine how much of a monthly benefit you'll get from the program.
If you sign up for Social Security at full retirement age (FRA), you'll get the exact monthly benefit your earnings history allows for. But if you delay your claim beyond that point, you'll accrue credits that result in a higher monthly benefit for life.
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Those credits, however, won't accumulate indefinitely. Once you turn 70, your benefits won't increase if you continue to delay your Social Security claim. It's for this reason that 70 is generally considered the latest age to sign up for Social Security.
That said, the Social Security Administration (SSA) isn't going to force you to file an application for benefits once your 70th birthday arrives. And if you don't file at that point, you'll risk losing out on income that could've otherwise been yours.
If you're past your 70th birthday and realize you never filed for Social Security, don't panic. You may not end up forgoing benefits if you act quickly enough.
File as soon as you can
If you're past your 70th birthday and didn't sign up for Social Security, stop what you're doing and file to get your benefits. But also, talk to the SSA about receiving a lump-sum payment for retroactive benefits.
The SSA will pay up to six months' worth of retroactive benefits dating back to FRA. What this means is that if your FRA is 67 and you decide to claim Social Security at age 67 1/2, you can get up to six months of "back pay" should you so choose.
Similarly, let's say you're 70 1/2 and never filed an application for benefits. At that point, you're eligible for six months of retroactive benefits, so you won't lose out on income you should've started receiving at exactly age 70.
If you wait too long to sign up for benefits beyond your 70th birthday, though, you could risk losing out on some of the money you should've gotten from Social Security. So it's best to act quickly if your 70th birthday has passed and you've yet to receive any benefits.
In some cases, getting retroactive benefits could result in the loss of delayed retirement credits. If you're 70 and two months old and ask for six months of retroactive benefits, you'll lose four months' worth of delayed retirement credits. However, if you're 70 1/2, getting six months of retroactive benefits won't result in the loss of any of those credits.
Know the rules
If you're not yet 70, it's important to understand the rules of delayed retirement credits so you can maximize your monthly benefit without losing out on income. Also, if you're planning to delay Social Security as long as possible, put a reminder on your calendar to file a claim in conjunction with your 70th birthday so you don't end up short on the benefits you deserve.
