Is Claiming Social Security at 70 Actually Worth It? Here's the Math.
Key Points
Claiming Social Security at 70 nets you your largest monthly checks.
For many people, it also leads to their largest lifetime benefit.
Those with short life expectancies or little savings may do better by applying earlier.
- The $23,760 Social Security bonus most retirees completely overlook ›
Waiting eight years after you become eligible for Social Security benefits to claim your first check may sound like a costly mistake to you, and for some people, it is. But the debate around the optimal time to apply for benefits continues for a reason.
When you claim doesn't just determine your monthly checks. It also affects the total amount you receive over your lifetime. Claiming at 70 often proves to be the smarter choice over the long run, but it depends on a few key factors.
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Why claiming Social Security at 70 may be the better choice
Every month you delay your Social Security application increases your checks until you turn 70, and the rate of increase accelerates over time. If, like most workers today, your full retirement age (FRA) is 67, your benefits grow as outlined in the table below:
|
Benefits Grow by: |
From Ages: |
|---|---|
|
5/12 of 1% per month (5% per year) |
62 to 64 |
|
5/9 of 1% per month (6.67% per year) |
64 to 67 |
|
2/3 of 1% per month (8% per year) |
67 to 70 |
Data source: Social Security Administration.
Delaying benefits until 70 nets you the largest monthly benefit by far. If you qualified for a $2,000 monthly benefit at 62, you'd be eligible for $3,543 per month at 70.
For many people, it will also net them the largest lifetime benefit. If you live until 85, claiming a $3,543 monthly benefit at 70 would give you $637,740 over your lifetime, compared to just $552,000 if you claimed a $2,000 monthly benefit at 62. But delaying Social Security isn't the right choice for everyone.
When claiming Social Security at 70 may not make sense
Those with shorter life expectancies may get a larger lifetime benefit by claiming Social Security earlier. In our previous example, if you only live until 75 instead of 85, claiming at 62 gives you $312,000, compared to just $212,580 if you waited until 70 to apply.
Delaying Social Security also doesn't make sense if doing so would force you to take on debt in the near term. In this case, it's much better to apply for benefits early, even if it means getting less over your lifetime.
It's also fine to choose one claiming age now and change your mind later. Just make sure you understand how that change will affect your monthly and lifetime benefits, and how much personal savings you'll need to cover the rest.
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