Choosing the right age to claim Social Security is one of the most crucial decisions you’ll make for retirement.
Although waiting until age 70 can significantly boost your monthly benefit amount, it’s not always the best move for everyone. Here’s why, despite research showing that age 70 maximizes your income, you may want to consider filing earlier.
Research Supports Filing at Age 70
Most financial experts and research studies agree that age 70 is the best time to file for Social Security if your goal is to maximize your benefits.
Filing at 70 allows you to earn delayed retirement credits, which increase your monthly benefit by around 8% per year after your full retirement age (FRA).
By age 70, you can receive at least 24% more than your full benefit, and this bonus can add up to hundreds of dollars more per month.
Studies, like the 2019 report from United Income, show that a majority of retirees would benefit financially by waiting until 70.
The report found that 57% of retirees could have maximized their lifetime income by delaying their benefits. Claiming early, on the other hand, could cost retirees as much as $111,000 over a lifetime.
Similarly, research from the National Bureau of Economic Research found that 91.6% of retirees would be better off financially by waiting until age 70 to claim Social Security. For those aged 55 to 62, waiting until the ideal age could increase lifetime income by an estimated $181,623.
When Claiming Social Security Early Makes Sense
While the data strongly supports waiting until age 70, your financial situation is only one piece of the puzzle. Other personal factors can make claiming benefits earlier the right choice.
1. Health Concerns
Your health should play a major role in your decision. If you have health issues or a family history of shorter life expectancy, claiming Social Security earlier (even at age 62) might be the better option.
While your monthly payments will be lower, you’ll have more time to enjoy your retirement years and make the most of your benefits.
Nobody can predict the future, and if you wait until age 70 but encounter health issues, you might not get to fully enjoy the extra income.
Filing earlier, even though it results in smaller checks, can provide peace of mind and allow you to enjoy your retirement while you’re still healthy.
2. Marital Status
For married couples, coordinating the timing of Social Security claims can be a smart strategy. One spouse can file early, say at age 62, while the other waits until age 70 to claim.
This approach can balance maximizing benefits for one spouse while still providing immediate income for the household. It can be especially useful when one spouse has significantly higher earnings or better health.
Additionally, filing early for the lower-earning spouse can ensure that the higher-earning spouse’s benefit continues to grow. In the event of the higher earner’s death, the surviving spouse would receive the higher monthly benefit.
3. Flexibility and Do-Over Option
If you’re unsure about your decision, claiming early can offer flexibility. If you claim benefits but later decide you’d rather wait, you have a 12-month window to change your mind. You can withdraw your application, repay the benefits you’ve received, and refile later for higher payments.
However, if you decide to delay claiming and regret it later, you can’t go back and get those early payments. Filing early gives you a chance to adjust your strategy if your circumstances change within the first year.
Balancing Financial and Personal Considerations
Ultimately, the decision of when to claim Social Security comes down to more than just finances. Age 70 is likely the best age for those who want to maximize their lifetime income and have good health or a family history of longevity.
But for others, particularly those facing health issues, marital considerations, or financial needs, claiming earlier can be a smart move.
If you want to retire early, filing at age 62 or FRA might allow you to enjoy your retirement without waiting until you’re older. You’ll receive lower benefits, but for many, the trade-off is worth it. There’s more to retirement than just maximizing income—you’ll need to balance financial considerations with your health, lifestyle, and personal goals.
FAQs
Why do most people file for Social Security before age 70?
Many people file early due to health concerns, financial need, or a desire to retire earlier, despite the lower monthly payments.
How much more will I receive by waiting until age 70 to file for Social Security?
By waiting until age 70, you can receive at least 24% more in monthly benefits compared to filing at full retirement age (FRA).
What happens if I change my mind after filing for Social Security early?
If you change your mind within 12 months of filing, you can withdraw your application and repay any benefits received, then refile later for higher payments.
Should married couples coordinate their Social Security filing ages?
Yes, coordinating the filing ages can help maximize household income, with one spouse filing early and the other delaying until age 70.
Is filing for Social Security early a good idea for those with health concerns?
Yes, if you have health issues or a shorter life expectancy, filing early can allow you to enjoy your benefits sooner, even though the payments will be smaller.
