The Case for Not Waiting Until 70 to Take Social Security 

They say, “patience is a virtue,” but it may not be the right approach when selecting when you’ll claim social security. The financial services industry has positioned the decision to wait until age 70 as a financially virtuous choice. And to be sure, it will result in a larger monthly check. But at what cost? Here’s what you may be missing in your calculations.   

The Wealth of Health 
The decision-making process on when to retire is often full of guilt and financial anxiety. The worry about running out of money alone can be a powerful motivator to stay in the workforce longer or delay your social security benefits. The problem is, while you may not run out of money, you will eventually run out of health. No amount of money can buy it back. You don’t want to miss doing what you’d envisioned—like travel, time with grandkids, and hobbies—because your health, energy, or mobility unexpectedly decline. 

Not Just Numbers 
Choosing when to take social security isn’t as simple as just “running the numbers.” It’s a decision that also involves emotion and risk. On paper, waiting until 70 might seem like a no-brainer. But what’s not reflected in the calculation is your own comfort-level with rolling the dice. Can you be certain you’ll live long enough and be healthy enough to fully enjoy those higher monthly payments?  

Timing Isn’t Everything 
Here’s a secret: the timing you elect probably won’t move the needle much in the grand scheme of things. The break-even point for social security—that is, the age at which your delayed benefits will surpass the total amount you would have received with an earlier election—is in the early 80s. That’s right around the current U.S. life expectancy. If you think you’ll live longer, then waiting until 70 to take your benefits will help you come out ahead. But, again, does anyone really know for sure?  

When 70 Makes Sense 
That said, there are some instances that do build the case for waiting until 70. Consider, for example, a couple where one partner has a significantly larger social security benefit than the other. Because the surviving spouse can receive the larger of the two benefits when the other one passes, it may suit the spouse with the higher benefit to wait until 70 to claim.  

Another scenario pertains to individuals who have had periods of unemployment or whose current salary is far higher than previous years. Your social security benefit is calculated by averaging the monthly earnings of your 35 highest earning years. Because of this, it may make sense to continue working to boost your benefit.  However, it’s important to note, this isn’t a hard and fast rule. And it’s never a decision that should be made without regard for your health and happiness. Ultimately, that’s the most important calculation you can make when choosing when to take social security.  

Still unsure you’re selecting the right date? Your personalized Roadmap for Retirement will give you confidence you’re on the track.  

Disclaimer: Numbers are for illustrative purposes only. Consult a professional for personalized advice.