Why You Should Wait Until Age 70 to Claim Social Security Benefits

A dedicated financial advisor, Jerry Guttman provides services through Total Living Plan in Phoenix, Arizona. Jerry Guttman collaborates with clients to identify personal finance goals and create strategies for attaining them. One of the key elements he helps clients with is retirement planning, including saving in tax-advantaged accounts and claiming Social Security benefits.

For most people, waiting until age 70 to claim Social Security benefits is the best decision. Several factors make this a choice wise. First of all, your benefit grows the longer you wait to claim Social Security, up until age 70. At that point, you have reached the maximum monthly benefit. The benefit you receive at age 70 is 75 percent higher than what you would receive at age 62, so waiting can nearly double the amount you receive each month. Since this benefit lasts your entire life, it makes sense to maximize the amount up front.

Also, Social Security benefits get adjusted for inflation periodically, and these changes are a percentage of your monthly payment. If you start with a higher payment, your adjustment is even larger over time.