Could Claiming Social Security at 70 Be a Good Idea for You?

Once you turn 62, you can claim Social Security at any time. But that doesn't make 62 the right filing age for you.

You're entitled to your monthly Social Security benefits without a reduction once you reach full retirement age. If you were born in 1960 or later, that age is 67.

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Claiming benefits ahead of full retirement age results in an automatic reduction. But there's a flipside. If you delay Social Security past full retirement age, you'll boost your monthly benefits by 8% for each year you wait.

Once you turn 70, you can no longer collect delayed retirement credits that boost your Social Security benefits. For this reason, 70 is typically considered the latest age to claim Social Security, even though you can technically file later on.

If you wait until 70 to sign up for Social Security, you'll enjoy boosted payments for life. But that's not the only reason to consider a delayed filing.

It's more than just extra money

If your full retirement age for Social Security is 67 and you sign up for benefits at 70, you'll score monthly payments that are 24% higher. To give you a sense of what that might look like, the average Social Security retired worker benefit today is about $2,000. If you're eligible for that amount at 67 but wait until 70, you'll be looking at monthly checks worth $2,480 instead.

But it's not just that delaying Social Security will give you larger monthly benefits. Holding off could also help you stretch your retirement savings and give you more financial peace of mind.

As of 2022, the median retirement savings balance among Americans ages 65 to 75 was only $200,000, according to the Federal Reserve. Now that's the most recent year for which the Fed has savings data available. And recent stock market gains have likely bolstered retirement savings broadly, making that $200,000 figure somewhat dated.

But even with that in mind, it's clear that the typical older American does not have a ton of money saved for retirement. Even if we double that median retirement plan balance to $400,000, if we use the 4% rule to determine withdrawals, we get to $16,000 a year of income, not including inflation adjustments.

That's not a lot of money to live on. So larger Social Security checks could come in handy.

At the same time, if you're retiring with an IRA or 401(k) plan balance that's comparable to the typical older American's, you may be worried about your money running out. The more money you get from Social Security each month, the less you might have to tap your IRA or 401(k), thereby allowing that money to last.

A delayed claim could give you one less thing to worry about -- but there are drawbacks

Many people find retirement financially stressful. If you want to worry less about money throughout your seniors years, then claiming Social Security at 70 could be a good idea for you.

However, you also need to look at the drawbacks and challenges of waiting that long. To claim Social Security at 70, you may need to keep working until 70. It's not a given that you'll be able to do that. And you may feel you don't have the energy for it.

Also, claiming Social Security at 70 will boost your benefits on a monthly basis. It won't necessarily lead to more lifetime income, though -- not if you end up passing away at a younger age than expected.

That's why it's important to consider both the pros and cons of filing for Social Security at 70. While there are perks to consider beyond a boost to your monthly checks, you'll need to make sure claiming benefits at 70 is both feasible and appropriate for your situation.

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