If You Want the Largest Lifetime Social Security Benefit, Claiming at This Age Is Probably Your Best Bet

You can make an argument for or against every Social Security claiming age because there are genuine trade-offs with each one. That's how the system was designed, not to make things complicated, but to give people options while still trying to keep things somewhat fair for everyone.

There is no best claiming age for every senior, but there is one claiming age that tends to rise above the rest if you want the largest lifetime benefit. That doesn't mean it's the right choice for you, though.

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Why claiming Social Security at age 70 works best for most people

Your claiming age helps determine the size of your Social Security checks. First, the government calculates your benefit at your full retirement age (FRA), which is 67 if you were born in 1960 or later. Then, it adjusts that amount up or down, based on your actual claiming age. Claiming early can reduce your checks by up to 30%, while delaying benefits beyond FRA grows your checks until you qualify for your largest benefit at 70.

A study from the National Bureau of Economic Research found that virtually all Americans aged 45 to 62 would do best to wait until after age 65 to collect, and nearly 90% would get the greatest lifetime benefit by waiting until 70 to apply. Doing so would net the average person over $182,000 more in total Social Security benefits.

That could substantially improve your financial situation in retirement, but it comes with a trade-off. Delaying Social Security benefits until 70 requires you to cover your living expenses on your own until you're ready to apply. That might be doable if you're still working or have a large nest egg, but that's not the reality for many seniors.

How to decide whether claiming Social Security at 70 makes sense for you

When trying to decide whether to delay Social Security until 70, the first question to ask yourself is whether you can afford to do so. If going without Social Security for years would cause you to drain your savings or potentially take on debt, it's not worth it. Begin claiming earlier to keep yourself financially secure.

When finances aren't an issue, the best claiming age depends on life expectancy. Those who expect to live into their 80s or beyond generally get a larger lifetime benefit by waiting to sign up. Those with short life expectancies may get more overall by claiming earlier. But if you're married, keep in mind that claiming early will reduce the survivor benefits your family gets after you've passed away.

You don't have to lock yourself into one claiming age right now. You can decide on what makes the most sense for you right now, and then change that plan down the line if your circumstances change.

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