Norman Simpson
Delaying Social Security until age 70 boosts a retiree's monthly check by roughly 132% compared with claiming at 62, thanks to delayed retirement credits that reward patience with a permanently higher payment for life.
The Math Behind Delayed Retirement Credits
Social Security lets workers claim as early as 62, but that early start comes at a steep, permanent cost. Monthly payments taken at 62 run about 30% below what a person would get at full retirement age (FRA), which is 67 for anyone born in 1960 or later. The bigger opportunity sits between FRA and age 70. For each year someone holds off past FRA, the Social Security Administration adds delayed retirement credits worth up to 8% annually, depending on birth year.
Run the numbers on a hypothetical $2,000 FRA benefit. Claiming at 62 drops that to about $1,400 a month, roughly 70% of the full amount. Waiting until FRA delivers the full $2,000. Push the claim to 70, and the payment climbs to around $2,480, about 124% of the FRA figure. That gap, $1,080 a month between the earliest and latest claiming ages, adds up fast over a retirement that could last two or three decades.
Why So Many Advisors Say Wait Until Age 70 for Social Security
The appeal isn't just the higher starting number. Social Security benefits receive annual cost of living adjustments, so a larger base amount compounds over time into a meaningfully bigger lifetime payout. For someone in reasonably good health with a family history of longevity, that compounding effect can be worth tens of thousands of dollars across retirement.
There's also a guarantee element that's hard to find elsewhere. An 8% annual increase for delaying is a locked in return, not subject to market swings. For retirees nervous about stock volatility or low bond yields, that kind of certainty carries real weight, even though it requires patience most people find difficult when they're staring at an empty paycheck.
Bridging the Gap Before Benefits Start
The average Social Security benefit paid in January was $2,071 a month, a figure that underscores how central these payments are to most retirees' budgets. That's exactly why waiting isn't realistic for everyone. Someone without other income sources may simply need the money at 62 or soon after.
For those who can wait, a few strategies make the gap manageable. Retirement accounts like a 401k or IRA can cover expenses in the interim. Some retirees lean on pension payments if they have them. Part time work is another common bridge, and it has the side benefit of keeping people socially engaged during early retirement. Married couples can also coordinate spousal benefit timing to support the household while the higher earner delays. Cutting discretionary spending temporarily, at least until the delayed benefit kicks in, rounds out the list of practical options.
Claiming Age Comparison
| Claiming Age | Percent of Full Benefit | Monthly Payment (Example) |
|---|---|---|
| 62 | About 70% | $1,400 |
| 67 (Full Retirement Age) | 100% | $2,000 |
| 70 | About 124% | $2,480 |
Frequently Asked Questions
Why wait until age 70 for social security?
Waiting until 70 maximizes the monthly benefit because delayed retirement credits add up to 8% per year past full retirement age, and that higher amount then grows with future cost of living adjustments.
Is it worth waiting to age 70 for social security?
For people in good health with other income to cover the gap, it often is, since the guaranteed increase outpaces what many low risk investments currently offer. For those relying on Social Security as their main income source, claiming earlier may be necessary.
Why should I wait until age 70 to collect social security?
The main reason is the permanent boost to monthly income, roughly 132% of the age 62 benefit, which can mean tens of thousands of dollars more over a long retirement.
Why you should wait until age 70 to collect social security?
Beyond the higher payment itself, a bigger base benefit compounds more over time through annual adjustments, and it acts as longevity insurance if you live well into your 80s or 90s.
How many people wait until age 70 to collect social security?
Only a small share of retirees delay all the way to 70; most claim between 62 and full retirement age, though the exact proportion varies by year and data source.
James Chavez