Be careful, pensioners: Many seniors overlook an important Social Security move
Retirement comes with very few guarantees. One of them is that Social Security will provide a monthly check for life. But the size of that check isn’t set in stone—it depends on decisions you make long before you stop working, and especially on when you decide to start collecting.
Unfortunately, most people miss the single biggest opportunity to maximise their benefits. Fewer than one in ten retirees take advantage of it, even though research shows it could lead to significantly larger checks.
The secret to bigger Social Security payments: Waiting until 70
Many people know that their benefits depend on how much they earn during their career. What’s less obvious is how dramatically your claiming age affects your monthly income.
- You can start claiming at age 62, but you’ll lock in up to a 30% reduction for life.
- Your full retirement age (FRA)—age 67 for anyone born in 1960 or later—is when you’re entitled to your full benefit.
- But if you wait past FRA, your benefit grows 8% per year until age 70. After that, the increases stop.
The difference is striking. Suppose you qualify for $2,000 per month at 62. By holding off until 70, you could receive $3,543 per month—a boost of more than $1,500. And that doesn’t even include annual cost-of-living adjustments, which would make the gap even wider over time.
A survey by the National Bureau of Economic Research found that over 90% of Americans would collect their largest lifetime benefit by claiming at 70. Yet only about 10% of people actually wait that long.
Why don’t more people wait?
If waiting until 70 is such a powerful move, why doesn’t everyone do it? There are two big reasons:
1. Many simply can’t afford to delay.
Not everyone has enough savings to cover living expenses in their 60s. For retirees without adequate pensions or personal savings, Social Security becomes a lifeline as soon as it’s available. In these cases, starting benefits early may be the only practical option—even if it means smaller checks for life.
2. Fear of “not living long enough”.
Some people worry they won’t live long enough to “break even”. While it’s true you need to reach your late 70s or early 80s to come out ahead financially, this calculation overlooks an important point: Social Security is longevity insurance. If you do live a long time, those bigger checks protect you against outliving your savings.
How to decide if delaying makes sense for you
Waiting until 70 isn’t for everyone, but it’s worth considering carefully. Ask yourself:
- Do you have other income sources? Savings, part-time work, or a spouse’s income can help bridge the gap.
- What’s your health outlook? If you expect a long retirement, larger checks will be a huge advantage.
- Are you married? Delaying can also boost survivor benefits for a spouse, giving them a stronger financial safety net.
Don’t leave money on the table
Social Security is one of the few retirement benefits you can actually control after you stop working. By waiting until age 70—if you can afford to—you could unlock the largest possible check for the rest of your life.
More than 90% of Americans would benefit from delaying, but only 10% take that route. If you’re approaching retirement, take a hard look at your finances before rushing to file. Those extra years of patience could pay off for decades.
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