Key Points
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You qualify for your maximum monthly Social Security benefit at 70.
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Waiting this long may not be the wisest move for you financially.
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Family members eligible for benefits based on your work record can’t claim them until you apply for checks.
If you’ve done any reading about when to claim Social Security, you’ve probably come across at least one article warning you about the dangers of claiming at age 62. Yes, you get more checks, but each one is smaller. Claiming early could also lead to a smaller lifetime benefit.
Many of these articles advise you to delay your claim, possibly as long as age 70, when you qualify for your largest possible benefit. But what they don’t tell you is that there are drawbacks to claiming at this age, too — and every age, for that matter.
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That doesn’t mean 70 is a bad time to sign up. It simply means you need to understand the potential disadvantages and weigh them against the possibility of a larger lifetime benefit to decide whether it’s right for you. Here are three reasons people may want to claim at age 70.
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1. You could die before you’re able to claim anything
No one knows when they’re going to die, and while many of us will live well past 70, some won’t. This makes waiting until 70 to claim Social Security a bit riskier than signing up at 62. There’s a chance that by waiting, you’ll miss your opportunity to claim benefits altogether.
This risk is most pronounced for those with terminal illnesses or a poor personal or family health history. If you fall into one of these groups, you may get a larger lifetime benefit from claiming early. But if neither of these issues applies to you, you may feel more comfortable waiting until 70 to apply.
2. You could strain your budget trying to cover all your expenses on your own until 70
If you wait until age 70 to claim Social Security benefits, you’ll need to cover all your living expenses on your own until then. This might not be a concern if you’re still working or if you’re sitting on a large nest egg. But many people find themselves unable to work and without a lot of savings.
In this scenario, the risks of running out of money or racking up a lot of debt may be too great to delay Social Security. Claiming benefits earlier might mean settling for a smaller lifetime benefit, but it could also give you the stability you need to cover your living expenses for the foreseeable future.
3. You could prevent family members from claiming benefits on your work record
If you’re married or have minor or disabled children, they may be eligible to claim Social Security benefits on your work record. However, they can’t do so until you apply for checks first. Waiting to claim may also limit their choice of when to apply.
This doesn’t mean it’s always the wrong move. But it’s something you should discuss with your partner to make sure you’re making the best decision for the household as a whole. You may prefer to sign up earlier, even if it means getting less yourself, to help your household take in multiple checks.
It doesn’t have to be one extreme or the other
If 70 doesn’t sound like the right claiming age for you, but neither does 62, that’s OK. Those aren’t your only two options. You can sign up for benefits at any point in between. Every month you delay checks grows your checks a little, so you might consider waiting a few months to a few years after you become eligible before you apply. This might feel more doable than covering all your expenses on your own until age 70.
It’s also fine if you change your claiming age as you get closer to retirement. Just make sure you understand the pros and cons of whatever you decide so you’re not caught off guard once your benefit checks start coming in.
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