Waiting until age 70 to claim Social Security can pay off with significantly larger monthly benefits. While you can start…
Waiting until age 70 to claim Social Security can pay off with significantly larger monthly benefits. While you can start collecting Social Security as early as 62, delaying benefits past your full retirement age allows your monthly payments to grow until you reach 70. For some retirees, that bigger check can make waiting worthwhile.
Here’s what to consider as you think about claiming Social Security at a later age:
— Waiting increases benefits.
— You may pay less in taxes.
— You could gain peace of mind.
— Review reasons not to delay payments.
— Compare Social Security at age 62 vs. 67 vs. 70.
Waiting Increases Benefits
For every year you delay claiming Social Security past your full retirement age, your benefits grow by 8% — giving you a significantly larger monthly check when you eventually claim.
While you can start taking Social Security at 62, you won’t receive the full benefit you have earned unless you wait until your full retirement age to sign up. You can check to see when you are eligible for full Social Security benefits. For anyone born in 1960 or later, the full retirement age is 67. After age 70, there are no further increases for delaying your benefit.
“By waiting until you’re 70 to start drawing on Social Security, you’re essentially opting for the highest possible monthly payout for the rest of your life,” says Khwan Hathai, a certified financial therapist based in Denver and founder of Epiphany Financial Therapy. “It’s like giving yourself a raise just by waiting.”
Want to see what waiting could mean for your wallet? You can compare your estimated Social Security benefit at different claiming ages.
“There are many online calculators that can help determine the amount you will receive at various ages, but I always recommend my clients go to ssa.gov and open an account to see the government’s estimate of what you will receive at different ages,” says Bill Waggoner, president and chief compliance officer at Stoney Creek Advisors in Rochester Hills, Michigan. “You can also consult an expert in Social Security planning before you make your decision to help create and adjust a robust strategy that works best for you.”
You May Pay Less in Taxes
If your income is above certain thresholds, you could owe federal income taxes on a portion of your Social Security benefits. If you file as an individual and your combined income exceeds $34,000, you may have to pay taxes on some of your benefits. For married couples filing jointly, the threshold is $44,000. At higher income levels, you may have to pay taxes on up to 85% of your Social Security benefit.
However, once you stop working, you may have less taxable income, which “will lessen the amount of taxes you will have to pay on your Social Security benefits,” says Aviva Pinto, managing director at Wealthspire Advisors in New York.
[READ: How to Undo Claiming Social Security Early.]
You Could Gain Peace of Mind
This depends on your financial situation, of course. If waiting to claim Social Security will create a financial hardship, you may not feel better at all. But if you can afford to wait, having a larger guaranteed monthly benefit could provide a greater sense of financial security throughout retirement.
Hathai points out that “from a money perspective, delaying to 70 can create a sense of empowerment and security,” she says. “There’s something inherently comforting about knowing you’ve maximized a guaranteed income stream.” Knowing you’ll have more money coming in each month could allow you to relax and enjoy retirement without as many financial worries.
[Read: What Is a Good Monthly Income in Retirement?]
Reasons Not to Delay Payments
Waiting to collect Social Security benefits often pays off in the long run, but there are a few reasons to start payments earlier:
— You may not live as long as expected. Not everyone lives into their 90s and beyond, and some people may not even make it to 70. “Life is unpredictable,” Hathai says. “Health can deteriorate and personal circumstances can change. If you or your partner face health challenges, the additional money you gain from waiting may not provide the value you once thought it would. There’s a very real emotional cost to consider here, especially if you feel restricted during what are supposed to be your freedom years.”
— You can’t make the math work. Depending on your financial situation, you may not have the luxury of waiting until age 67 or 70 for a larger payout. Maybe you retire early at age 60. You might not be able to maintain your lifestyle for years or even a decade without collecting Social Security benefits.
— You might not have a job. If you lose your job or are laid off before you planned to retire, you could find yourself short on funds. In this case, you could look for another job or start collecting Social Security benefits to help support yourself.
Compare Social Security at Age 62 vs. 67 vs. 70
Consider the pros and cons of claiming benefits at different ages. Here are some examples of what to expect when taking Social Security at ages 62, 67 and 70.
62
67
70
Pro
Early access to funds.
You receive 100% of the benefits you’ve earned.
Receive an 8% increase in benefits per year after full retirement age in addition to full benefits earned.
Con
Benefits are reduced by about 30% compared to full retirement age.
Smaller monthly benefit compared to waiting until age 70.
Requires waiting and potentially using other savings in the meantime.
Example
If your full retirement benefit is $1,500 per month at age 67, you would receive about $1,050 per month if you start at age 62.
With a full retirement benefit of $1,500 per month, you get the full amount starting at age 67.
If your full retirement benefit is $1,500 per month at age 67, you would receive about $1,860 per month if you start at age 70.
2026 maximum monthly benefit
$2,969
$4,152 at full retirement age
$5,181
Choosing when to start Social Security benefits requires careful consideration of your health, financial situation, employment status and retirement goals. Delaying benefits can increase your monthly payout, but claiming earlier may make more sense in some circumstances, such as if you have a health condition or need the income sooner.
More from U.S. News
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Can You Collect Unemployment and Social Security?
Reasons to Take Social Security Late at Age 70 originally appeared on usnews.com
Update 08/13/26: This story was published at an earlier date and has been updated with new information.
