Why Delaying Social Security to 70 Can Strengthen Your Retirement Cushion

Many retirees treat their savings as something to protect at all costs, but one of the most important ways to improve retirement security comes down to a decision that can’t easily be reversed.

A lot of Americans in their 60s and 70s have spent decades building nest eggs, yet still struggle to use them. Prudential Financial (NYSE: PRU | PRU Price Prediction) surveyed 3,023 U.S. adults age 50 and older for its 2026 Retirement Pulse, and 86% said they do not feel comfortable spending their savings on things they enjoy.

Social Security is part of that anxiety. In the survey, 44% of respondents said they were concerned about its future, while 66% said they would rather have guaranteed lifetime income than a lump sum. The 2026 Trustees Report projects that the retirement trust fund’s reserves will be exhausted in 2032, though ongoing payroll revenue would still be enough to pay about 78% of scheduled benefits.

Consider Linda, 67, who has a solid IRA, a home that is paid off, and a Social Security benefit of $2,500 a month ready to claim. Even though she can afford to enjoy retirement, she worries about outliving her money and keeps holding back.

Waiting Three Years Can Turn Into a 24% Lifelong Boost

For people born in 1960 or later, full retirement age is 67. If you wait beyond that point, you earn delayed retirement credits of 8% per year, and those credits stop at age 70.

By waiting until 70, the monthly benefit rises by 24% before inflation adjustments. In Linda’s case, that would lift her $2,500 payment to $3,100. That is an extra $600 a month, or $7,200 a year, for the rest of her life.

There is one timing wrinkle to keep in mind: Social Security may apply credits from the year you claim in the following January, so the full increase can appear a little later than expected.

Cost-of-living adjustments make the larger benefit even more valuable. A projected 3.6% increase would add about $90 to a $2,500 monthly benefit or roughly $112 to a $3,100 benefit. Both checks receive the same percentage increase, but the larger benefit produces more dollars each time.

A bigger guaranteed payment can also make spending feel easier. If Social Security covers groceries, utilities, and property taxes, then those basic costs no longer have to be paid from savings. That leaves the IRA available for travel, gifts, and other expenses retirees have been putting off.

What You Give Up While Waiting

To delay claiming, Linda would need to rely on other income for three years. If she lives off savings instead of taking the $2,500 monthly benefit, she gives up roughly $90,000 in payments, a loss many Prudential Financial survey respondents would likely find hard to accept. In other words, spending more freely later means spending deliberately now.

At an added $7,200 a year, Linda would recover the missed $90,000 in about 12.5 years, which would put her around age 82½. That is a simplified break-even estimate that does not include investment returns, taxes, or inflation changes. Living longer generally makes the larger benefit more attractive, while claiming earlier preserves more savings during those first three years.

Claiming at 67 can still make sense for some people. Retirees in poor health, or those who would need to drain much of a small savings balance to get to 70, may be better off starting benefits sooner and keeping more cash available.

For married couples, waiting can also protect the surviving spouse. A spouse who survives generally receives 100% of the deceased worker’s benefit at full retirement age, and delayed retirement credits carry over as well. If the higher earner waits until 70, that larger benefit can continue for whichever spouse lives longer.

Use the Gap Years as a Planned Bridge

The hardest retirement choice to undo is the age at which you claim benefits. Once Linda starts Social Security, that monthly amount is largely fixed for life. By contrast, withdrawals from savings can be adjusted year by year. If she uses the years between 67 and 70 as a planned bridge and takes a set monthly amount from savings, spending becomes part of the strategy instead of something to feel guilty about.

What matters most is how much of the basic budget the guaranteed check can cover. Retirees who know that a larger, inflation-adjusted benefit will handle their core expenses may finally feel comfortable using the savings they already worked so hard to build. Health, marriage, taxes, and the size of the gap all affect the decision, so it is worth running the numbers before choosing a claiming age.