3 Situations Where Planning to Claim Social Security at 70 Can Backfire
Key Points
You may get a larger lifetime benefit by applying earlier if you have a short life expectancy.
Delaying until 70 isn't your best option if you need your checks to pay your bills today.
Your spouse can't claim a spousal benefit on your work record until you apply for retirement benefits.
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Delaying your Social Security application until age 70 will get you the largest monthly checks, but that doesn't mean it's always your best option. There are times when doing so could cost you or your family money or may even put you in a tight financial spot.
If any of these three things apply to you, you're probably better off applying for Social Security benefits earlier.
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1. You don't expect to have a long life expectancy
Claiming Social Security at 70 often maximizes your lifetime benefit if you live into your mid-80s or beyond. But those with shorter life expectancies often get more from the program by signing up earlier, possibly even as soon as they become eligible for benefits at 62. This could be the right choice for you if you're in poor health.
However, if you don't need your benefits to cover your living expenses today and you expect your family members to be dependent on your survivor benefits after you've passed away, you might prefer not to sign up for checks at all while you're alive. This will increase the monthly checks your family receives after you're gone.
2. You're unable to work and need your checks to pay your bills
Delaying Social Security until 70 can result in a larger lifetime benefit, but it isn't worth it if doing so would put you into debt in the present. Larger Social Security checks down the road likely won't make up for this, so it makes sense to prioritize your financial security now.
You may be able to delay Social Security for a few months or years, depending on what other retirement income sources you have. This could reduce the early claiming benefit reduction you face and may lead to a slightly larger lifetime benefit.
3. You're married, and your spouse wants to apply for a spousal benefit
Your partner can only apply for a spousal benefit on your work record if you're claiming retirement benefits. Waiting to apply for Social Security until age 70 could deprive your spouse of the opportunity to claim these checks and reduce your household benefits.
Talk your options over with your spouse and decide when each person will claim. If your partner is eligible for a retirement benefit, they may decide to claim this initially instead. Then, they can switch to a spousal benefit once they apply if the spousal benefit is worth more than what they're currently eligible for.
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