Should You Delay Social Security Until Age 70?
When to start Social Security is one of the most consequential decisions retirees face.
For many, delaying until age 70 maximizes total lifetime benefits—especially if you’re in good health. But that doesn’t make it a no-brainer.
Let’s break it down with numbers, context, and one big “what if.”
📊 The Math: Claim at 62 vs. 70
We’ll assume:
- Monthly benefit at age 62: $1,288
- Monthly benefit at age 70: $3,065
- Average life expectancy: Men = 84, Women = 87
Here’s what total lifetime benefits look like:
Gender | Claim at 62 | Claim at 70 | Gain from Delaying |
|---|---|---|---|
Men | $340,032 | $514,920 | +$174,888 |
Women | $386,400 | $625,260 | +$238,860 |
So far, it looks like delaying until 70 is a big win.
💡 But What If You Invested the Early Benefits?
Let’s assume you take the $1,288/month from 62 to 70 and invest it with a 6% annual return. That adds up to a sizable chunk by age 70—around $123,648 in invested cash flows that compound over time.
We then compare the total lifetime benefits for each strategy:
Gender | Claim at 62 + Invest @6% | Claim at 70 | Difference |
|---|---|---|---|
Men | $374,287 | $514,920 | −$140,633 |
Women | $420,655 | $625,260 | −$204,605 |
💥 Even with solid investment returns, delaying to age 70 still wins if you live to average life expectancy.
🧠 Why Some People Still Choose to Claim Early (And Aren’t Wrong)
Even in good health, there are legitimate reasons to claim early:
- You want or need the income now
Those first 8 years of income total over $123,000, even before investing. That’s powerful cash flow flexibility. - You might not live to the break-even age (80–81)
Averages don’t account for individual risks. - You want to spend more in your 60s than in your 80s
Why delay income you may not enjoy later? - You fear future Social Security changes
While rare, some fear potential means testing or benefit cuts. - You prefer control
Money in hand can be invested, gifted, or used strategically for other goals. - You want to reduce withdrawals from your portfolio early in retirement
A guaranteed income floor helps mitigate market risk.
🧾 Takeaway
Social Security isn’t just a math problem. It’s about goals, preferences, flexibility, and risk. But if you’re in good health and can afford to wait, delaying until age 70 typically results in higher lifetime income—even when comparing to a 6% annual return on early claims.
Want Help Optimizing Your Retirement Timing?
At Stonebrook Capital Management, we help clients make evidence-based, emotionally satisfying retirement decisions—backed by math, but tailored to real life.
