Why I Reconsidered Waiting Until 70 to File for Social Security

Delaying Social Security until age 70 can seem like an obvious financial win, but there is one major factor that often gets ignored. A closer look shows why the usual advice may not be as straightforward as it sounds.

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Age 70 is not the most common time to start Social Security, and the main reason is simple: many people do not want to wait that long.

You can begin filing once you reach age 62. If you wait until full retirement age, or FRA, which is 67 for people born in 1960 or later, you can receive your full monthly benefit without a reduction. Filing before FRA lowers your monthly checks for life.

On the other hand, if you postpone your claim beyond FRA, your benefit grows by 8% each year until age 70. That means waiting can be very rewarding if you do not need the money right away.

For a long time, I was sure I would hold off until 70. Now I am not so certain.

Claiming sooner may help in other ways

One reason I am less interested in waiting is that many people are still in reasonably good health in their early or mid-60s. By 70, however, mobility may decline and other health problems can appear. I am not sure I want to take that risk.

I understand that filing at 70 leads to larger monthly payments, and that added financial security is appealing. But I also do not want to give up the chance to enjoy better health while I can.

I am also unsure that I would feel comfortable putting off Social Security until 70 without a job to support me in the meantime. I do not know what the job market will look like, or what my specific field will look like. If I am unable to keep working into my early 60s, I may not want to delay benefits any further.

Give the choice serious thought

It is tempting to assume that waiting until 70 is always the best move because it produces the biggest monthly benefit. But postponing those payments could also mean missing out on other ways to use the money well.

It is also risky to assume you will have reliable income that lets you delay Social Security until 70. If you cannot keep working in some form, you will likely need substantial savings to fill the gap. And while that may be possible for some people, it takes discipline to build that kind of cushion.

Since I am still far from being eligible for Social Security, I do not need to lock in my filing age right now. Even so, it makes sense to think through the possibilities long before retirement. At the moment, I am not leaning toward waiting until 70.

You may come to a different conclusion based on your savings, work options, health, and other factors. The important thing is to look at the full picture and allow yourself to revise your thinking before making a final decision. Many people do exactly that when it comes to Social Security.