Research shows most people should take Social Security at 70: Why you may not want to wait

Choosing your Social Security filing age is perhaps the most important retirement decision you'll make, as it can affect your benefit amount by hundreds of dollars per month.

You can begin claiming as early as age 62, but that comes at a steep price: a permanent benefit reduction of up to 30%. Waiting until age 70 will earn you the maximum possible payments based on your work history, with a bonus of at least 24% on top of your full benefit.

Despite the reduction in benefits, 62 is one of the most popular filing ages. According to 2023 data from the Social Security Administration, roughly one-quarter of both men and women file at 62, while fewer than one in 10 wait until age 70.

When it comes to the ideal age to take Social Security, though, the data is clear: Age 70 is far and away the best time for the majority of retirees. While the data is compelling, here's why that may not be the best move for your retirement.

Research shows filing at 70 is a no-brainer

Taking Social Security benefits at age 70 can maximize your monthly income, sometimes increasing your benefit amount by several hundred dollars per month. But for most older adults, it can maximize your lifetime income, too.

In a 2019 report from United Income, researchers used data from the Social Security Administration to examine retirees' claiming decisions and how those decisions affected their lifetime income. They then determined how many retirees made the ideal claiming choice to maximize their income and at what age older adults should file to earn as much as possible.

They found that claiming before age 64 is the ideal choice for only 6.5% of retirees, while a whopping 57% could have earned more in total by filing at age 70. Furthermore, filing at a less-than-optimal age costs the average retired household around $111,000 in total income over a lifetime.

A separate, similar study from the National Bureau of Economic Research found that a staggering 99.4% of retired households could maximize their lifetime income by waiting until at least age 65 to file, while 91.6% would be best off financially by claiming at age 70.

Additionally, the study revealed that for those aged 55 to 62, specifically, claiming Social Security at the financially optimal age could result in lifetime gains of around $181,623.

When it pays to take benefits sooner

The data may be clear that taking benefits at 70 can maximize your total lifetime income. However, finances are only one part of the equation when it comes to deciding on a filing age. Other factors, like health and marital status, can play an equally important role in this decision.

If your health takes a turn for the worse in your 70s, filing for benefits sooner could give you more time to enjoy retirement. Nobody can predict the future, of course, but life can throw curveballs in an instant. Filing early will reduce your monthly payments, but it could also help you make the most of every moment in case the unthinkable happens.

Also, if you're married to someone who is also entitled to Social Security, it can be a good idea to coordinate your claiming ages. For example, one person may wait until age 70 to earn the maximum payment, while the other files at 62 to make it a little more affordable to retire early.

Finally, filing early can be a smart option if you're on the fence about when to claim. If you change your mind within 12 months of taking benefits, you can withdraw your application and file again later. But if you delay benefits from the start and regret your decision, you can't go back in time for a do-over.

No matter your situation, finances will play only one part in your decision. If your primary goal is to earn as much as possible in retirement, delaying claiming until age 70 is likely your best bet. But if you're aiming to retire earlier for health reasons or otherwise, it sometimes pays to file early. You may need to make some financial sacrifices, but there's more to retirement than just money.

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