Delaying Social Security Until 70 Could Boost Lifetime Income by Over $182K

Key Points

• Research shows that most middle‑aged and older Americans would benefit financially by waiting until age 70 to claim Social Security.

• Yet only about one in ten retirees actually delay benefits to that age to earn the maximum delayed‑retirement credits.

• While postponing Social Security can be advantageous for many, it isn’t the ideal strategy for everyone.

One of the hardest financial decisions you might face in retirement planning isn’t choosing when to leave your job or start drawing down savings. Rather, it’s determining the optimal time to claim Social Security benefits.

You can begin receiving benefits at any age after you turn 62. To receive your full, unreduced monthly payment, however, you must wait until you reach your full retirement age—which is 67 for anyone born in 1960 or later.

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Delaying benefits beyond your full retirement age increases your monthly check. You accrue delayed‑retirement credits worth 8 % for each year you postpone, up to age 70.

Of course, holding off until 70 isn’t always simple. It may require working longer or dipping more deeply into your retirement savings to cover everyday expenses.

Nevertheless, recent research highlights a substantial advantage to waiting until 70 to claim Social Security, and it shows that only a small fraction of eligible individuals actually take advantage of this opportunity.

What you might gain by delaying Social Security until age 70

According to the National Bureau of Economic Research, roughly 10 % of Social Security recipients wait until age 70 to file. Yet the same data indicate that more than 90 % of Americans between the ages of 45 and 62 would improve their financial outlook by delaying benefits that long.

The analysis further reveals that by claiming early, the typical household in this age group could forfeit about $182,370 in lifetime discretionary spending. In addition, optimizing the timing of Social Security could boost lifetime spending by as much as 17 % for one‑quarter of claimants in the same cohort.

Why do so many people opt to claim earlier? For some, the desire to leave the workforce sooner drives the decision. For others, health issues or job‑market challenges make continued work impossible, even if they would prefer to stay employed.

Either way, the evidence is clear: individuals who are able to wait can substantially improve their financial position by postponing benefits until age 70.

Should you wait until age 70 to claim Social Security?

While claiming at 70 can deliver notable financial advantages, it isn’t the best move for everyone. A primary reason to avoid delaying benefits is poor health coupled with a shorter life expectancy.

In such situations, filing at 70 might actually reduce total lifetime income, despite the higher monthly payments. If you’re uncertain about your longevity, claiming earlier could be the more sensible choice.

It may also be unwise to wait until 70 if you prefer to retire earlier and have accumulated sufficient savings to support your lifestyle.

As you grow older, health and mobility often decline. If your essential living costs are already covered by other sources but you rely on Social Security to fund travel, hobbies, or long‑held aspirations, you shouldn’t feel compelled to forgo those experiences simply to increase your monthly benefit.

All things considered, postponing Social Security until age 70 can markedly enhance your spending power throughout retirement. The impact can be especially pronounced for those who have not built a substantial nest egg. Consequently, it’s worthwhile to evaluate whether a delayed claim fits your circumstances and what benefits it could provide.

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