3 Reasons to Claim Social Security at 70

Source Motley_fool

Key Points

  • Delaying a Social Security claim until age 70 often makes good sense.

  • A later claim can help you maximize the monthly income you receive.

  • The odds are that a later claim will also lead to larger lifetime benefits.

  • The $23,760 Social Security bonus most retirees completely overlook ›

You can start Social Security at 62, but for many retirees, waiting until 70 is a better plan.

Of course, delaying your claim for benefits for eight full years after you become eligible means you're passing up a lot of income you could have collected. And unless you want to actually work until you are 70, you're going to need money in your retirement plans to support you until you claim your benefits.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

Despite these downsides, though, there are plenty of great reasons to wait to start your benefit checks. Here are three of them.

Adults looking at financial paperwork.

Image source: Getty Images.

1. A delayed claim increases your monthly income

The first benefit of waiting to claim Social Security until 70 is obvious. When you wait to start your checks beyond your full retirement age, you increase your standard benefit by 2/3 of 1% per month. If you're able to delay until age 70 (the full three years from the FRA for anyone born in 1960 or later), you will increase your benefit by 24%.

This makes a substantial difference in what you collect each month. If your standard benefit was on track to be $2,000, for example, a 24% increase in benefits would mean you bring home an extra $480 per month or $5,760 per year. That's a lot of extra money that could fund an amazing trip, extra healthcare, or whatever else you need.

2. You can increase survivor benefits

Increasing survivor benefits is another major advantage of claiming at 70 if you are married. Survivor benefits provide your spouse with income after you pass away. Your spouse will be entitled to your standard benefit plus any delayed retirement credits you are eligible for.

If you were the higher earner in your household, your survivor benefits could be worth considerably more than your widow's own retirement or spousal benefits. Your delayed claim could help set them up for success after you are gone.

3. You maximize your odds of collecting the most lifetime income

Finally, the third major advantage of delaying a benefits claim until 70 is that you can maximize the odds of getting the most lifetime income from Social Security. Studies have repeatedly shown that the majority of retirees end up with more money over time if they put off their Social Security claim.

In fact, the National Bureau of Economic Research reported that more than 90% of workers aged 42 to 65 should delay their claim until 70, while just 10.2% actually do that. The cost of claiming at a suboptimal early age is as high as $182,370 in lost lifetime discretionary spending.

For all these reasons, you should seriously consider claiming your payments at 70 rather than earlier. Maximizing benefits with built-in inflation protection and guaranteed for life just makes sense.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Analysis Today: Gold Rebounds After 1.91% Drop as Yields Ease. Is $4,449 Next? Gold fell about 1.91% on August 18 before producing a strong bullish reaction from the 1-hour demand zone in early August 19 trading. RSI is recovering from oversold conditions, but Supertrend remains bearish as traders await the Fed minutes.
Author  Naoufal Seddik
Aug 19, Wed
Gold fell about 1.91% on August 18 before producing a strong bullish reaction from the 1-hour demand zone in early August 19 trading. RSI is recovering from oversold conditions, but Supertrend remains bearish as traders await the Fed minutes.
placeholder
Gold Price Analysis Today: Gold Gains 0.94% as Markets Expect Fed to Hold Rates, Can $4,449 Resistance Break? Gold gained 0.94% on August 17, closing near $4,417.30 as softer US data strengthened expectations for unchanged Fed rates in September. Gold remains bullish, with $4,449.730 resistance and $4,310.650 support in focus.
Author  Naoufal Seddik
Aug 18, Tue
Gold gained 0.94% on August 17, closing near $4,417.30 as softer US data strengthened expectations for unchanged Fed rates in September. Gold remains bullish, with $4,449.730 resistance and $4,310.650 support in focus.
placeholder
Gold Price Analysis Today: Gold Drops 1.32% Despite Lower Fed Rate-Hike Bets, Can $4,313 Support Hold? Gold fell 1.32% on August 13 after rising to $4,449.73, then reversing lower and closing near $4,349.918 below the $4,356.46 support. Softer US inflation data reduced Fed rate hike expectations, but selling pressure still dominated the session. Will $4,313 support hold?
Author  Naoufal Seddik
Aug 14, Fri
Gold fell 1.32% on August 13 after rising to $4,449.73, then reversing lower and closing near $4,349.918 below the $4,356.46 support. Softer US inflation data reduced Fed rate hike expectations, but selling pressure still dominated the session. Will $4,313 support hold?
placeholder
XAUUSD Gold Analysis: Gold Holds Above $4,350 Ahead of US Inflation Data Is $4,500 Next? Gold holds above $4,350 following weak US jobs data. As inflation reports approach and UBS eyes $5,000, can XAUUSD break resistance at $4,435 to rally toward $4,500?
Author  Naoufal Seddik
Aug 12, Wed
Gold holds above $4,350 following weak US jobs data. As inflation reports approach and UBS eyes $5,000, can XAUUSD break resistance at $4,435 to rally toward $4,500?
placeholder
Intel Price Forecast: Nvidia Picked Xeon 6, Invested $5B, Yet Analysts Still Trail INTCIntel Corporation (NASDAQ: INTC) sits at $140.05, holding firm on the ascending trendline within the 2H timeframe. The RSI indicator is currently reading 55.21, positioning it as neutral-
Author  TradingKey
Jul 02, Thu
Intel Corporation (NASDAQ: INTC) sits at $140.05, holding firm on the ascending trendline within the 2H timeframe. The RSI indicator is currently reading 55.21, positioning it as neutral-
goTop
quote