Social Security at 70? Why the “Gold Standard” Advice Works for Only a Few

What the Conventional Wisdom Says

For decades, financial planners have urged retirees to delay their Social Security benefits as long as possible, ideally until the full retirement age of 66‑67 or even the maximum age of 70. The logic is simple: each month you wait adds roughly an 8 % increase to your monthly benefit, resulting in a larger, inflation‑adjusted lifetime payout.

Why Most People Cash In at 62

Despite the math, the vast majority of Americans claim their benefits as soon as they’re eligible at age 62. The reasons are often practical rather than theoretical:

• Financial necessity – many retirees lack sufficient savings or a pension to bridge the gap.
• Health concerns – the fear of not living long enough to “recoup” the delayed earnings.
• Job market realities – older workers may struggle to find employment that offers health insurance or a steady income.

Who Actually Benefits from Waiting Until 70?

Delaying benefits isn’t a one‑size‑fits‑all strategy. It tends to favor:

• Individuals with high lifetime earnings, because their benefit base is already substantial.
• People in good health with a family history of longevity.
• Retirees who have other reliable income sources (e.g., a sizable 401(k), rental income, or a pension) that can cover living expenses.

The Trade‑Offs of Delaying

While the boost to monthly payments is attractive, it comes with several downsides:

• Reduced total benefits if you die early – the extra months of payments are lost forever.
• Opportunity cost – the money you could have received earlier might be invested elsewhere for higher returns.
• Complexity – determining the optimal claim age requires detailed projections of life expectancy, inflation, and investment performance.

Planning the “Unplannable”: Practical Tips

Regardless of your decision, consider these steps to make the most of Social Security:

1. Run the numbers. Use the Social Security Administration’s calculators or a reputable retirement‑planning tool to compare scenarios at 62, 66, and 70.
2. Factor in spousal benefits. Coordinating claims with a spouse can unlock survivor benefits and higher household income.
3. Account for health. If you have a chronic condition or a family history of early mortality, claiming earlier may be wiser.
4. Consider partial benefits. You can work part‑time while receiving reduced benefits, allowing you to test whether you need the full amount.
5. Revisit your plan. Life circumstances change; you can adjust your claim strategy up to age 70.

Bottom Line

The “wait until 70” mantra is a powerful tool for a select group of retirees, but it isn’t universally optimal. By evaluating your health, financial cushion, and long‑term goals, you can decide whether to seize the benefits early or let them grow for a larger, later payout.