Delaying your Social Security benefits until age 70 may not be the most exciting retirement strategy, but it could be one of the smartest financial decisions you make. Backed by government incentives and expert analysis, waiting to claim your Social Security after full retirement age can lead to significantly higher monthly payments and better long-term financial security.
How Delaying Benefits Works
Social Security benefits can be claimed as early as age 62, but doing so reduces your monthly payment. The Social Security Administration (SSA) defines Full Retirement Age (FRA) based on your birth year—typically 66 or 67 for most Americans. If you delay collecting benefits past your FRA, you earn Delayed Retirement Credits of about 8% per year, until you reach age 70.
According to the SSA’s retirement planner, waiting until 70 can increase your benefit by 24% to 32%, depending on your full retirement age. These credits stop accumulating once you hit 70, so there’s no financial incentive to delay beyond that point.
Why Delaying Pays Off
1. Bigger Monthly Payments
The primary advantage is simple—more money. If your FRA benefit is $2,000 per month and you wait until 70, your monthly check could increase to around $2,640—and that higher amount will last for life.
2. Better Inflation Protection
Social Security includes annual cost-of-living adjustments (COLAs) to keep up with inflation. A larger base benefit means you’ll receive larger COLA increases year after year, helping to preserve your purchasing power.
3. Higher Survivor Benefits
If you’re married, delaying your benefit can also mean a higher benefit for your surviving spouse. As AARP explains, survivor benefits are based on the deceased spouse’s benefit amount—so maximizing yours helps ensure greater financial protection for your partner.
When Delaying May Not Be Ideal
Delaying isn’t always the right choice. You should consider:
- Your Health & Life Expectancy: If you have a chronic illness or a shorter life expectancy, it may make sense to take benefits earlier.
- Immediate Financial Needs: If you need income to cover living expenses and don’t have savings or other sources, delaying might not be feasible.
- Work Plans: If you plan to work during your 60s, your income could reduce your Social Security benefits if you claim early. After FRA, earnings no longer reduce benefits, but taxes could apply.
How to Calculate the Difference
You can estimate your benefits using the Social Security Estimator Tool from the SSA:👉 https://www.ssa.gov/estimator/
The tool helps you compare benefit amounts based on claiming at 62, FRA, or age 70, using your actual earnings history.
Taxes Still Apply
Be aware that up to 85% of your Social Security benefits could be taxable depending on your total income from other sources. As Charles Schwab notes, planning your withdrawals strategically can help minimize your tax burden.
Financial Experts Agree
A growing number of retirement planners and economists recommend delaying Social Security if your situation allows. Kiplinger notes that for many, the breakeven point—when your total lifetime benefits become higher from delaying—is around age 82-83. If you live past that, you come out ahead.
According to a study cited by InvestmentNews, delaying benefits is one of the best ways to boost retirement income, yet fewer than 10% of claimants wait until 70.
Bottom Line
Delaying your Social Security benefits until age 70 can pay off in a big way. You’ll lock in a larger monthly check, enjoy stronger inflation protection, and potentially provide better financial support for a surviving spouse. It’s a move backed by the numbers and endorsed by financial professionals—if you can afford to wait, it may be the most powerful retirement strategy available to you.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
