Deciding when to claim Social Security can be complicated because the age at which you claim benefits affects how much income you’ll get. The difference in income can be really substantial depending on whether you claim benefits early, late, or on time.
While the right approach depends on several things, including whether you’re married, your health status, other savings, and additional individualized factors, there are plenty of great reasons to wait until 70 to start taking Social Security. In fact, here are four big reasons waiting makes a lot of sense.
1. You’ll get the maximum in guaranteed income
While you can begin receiving Social Security benefits when you’re as young as 62, waiting to receive them earns you delayed retirement credits. Your standard Social Security benefit is based on the age the Social Security Administration classifies as your full retirement age (FRA). If you were born after 1960, your FRA is 67.
If you retire before FRA, benefits are reduced by five-ninths of 1% for each of the first 36 months before FRA. If you retire more than 36 months before FRA, benefits are reduced by an additional five-twelfths of 1% for each earlier month.