If you want the largest monthly Social Security checks that you can get, nothing beats waiting until age 70 to claim. That's when you qualify for your maximum retirement benefit. While the gains can be pretty significant, this move isn't without its drawbacks.
You'll have to find another way to cover your expenses until you're ready to sign up for Social Security. That could mean working longer than you want to or burning through your personal savings more quickly. And that's not the only factor you have to weigh when deciding whether claiming at 70 is right for you.
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What to consider when deciding whether to apply for Social Security at 70
There are two main factors to consider when deciding whether claiming at 70 makes sense for you. The first is your financial situation. If you cannot work and have no other way to cover your expenses, delaying your Social Security application isn't right for you. Claim your checks to maintain your financial security, even if it means settling for a smaller lifetime benefit.
You may also want to claim Social Security earlier if you have a short life expectancy. Delaying can be risky in this situation, as waiting too long may mean you don't receive any money from the program. However, married individuals in this situation should note that early claiming may reduce the spousal benefit available to their partner after they die.
If neither of those things applies to you, claiming at 70 could be a smart move. It may lead to a larger lifetime benefit, and that could help you stretch your personal savings further. But it's not your only option.
How your claiming age affects your Social Security checks
Every month you delay Social Security increases your benefits, though exactly how much they increase depends on your current age and your full retirement age (FRA). For most workers today, FRA is 67.
The following table breaks down how quickly benefits grow over time for someone with an FRA of 67:
|
Between Ages: |
Benefits Grow By: |
|---|---|
|
62 to 64 |
5/12 of 1% per month (5% per year) |
|
64 to 67 |
5/9 of 1% per month (6.67% per year) |
|
67 to 70 |
2/3 of 1% per month (8% per year) |
Source: Social Security Administration.
This shows that, while you must wait until 70 to claim your maximum checks, you don't need to wait that long to make a meaningful difference to your benefits. You can delay for just a year or two if that makes more sense for you.
Think about what you're most comfortable with and develop a tentative plan. But don't be afraid to change it later if your health, finances, or personal preferences change.
