Current:Home > InvestIs 70 the best age to claim Social Security? Not in these 3 situations. -ProfitPoint
Is 70 the best age to claim Social Security? Not in these 3 situations.
View
Date:2025-04-13 17:28:13
For most people, the optimal age to claim Social Security is 70. A study from United Income found that the majority of retirees would end up with more lifetime income if they delayed their benefits until that age.
This does not mean that everyone is better off claiming at 70, though. In fact, there are three situations in which making a different choice would be a better financial move.
If you're claiming spousal benefits
When you are claiming benefits based on your spouse's work record, you absolutely do not want to wait until you are 70 to do so. The best age to start your checks in this situation is typically your full retirement age (FRA). That's because if you claim your benefits at your FRA, you should receive the maximum spousal benefit, which is 50% of your higher-earning spouse's primary insurance amount.
You cannot earn delayed retirement credits for spousal benefits, so there's no benefit to waiting any longer than FRA to claim them. The most you'll get is always going to be 50% of your spouse's standard benefit check. You do, however, lose benefits if you claim before FRA, so waiting until then often makes good sense.
If you're in poor health with no spouse
Claiming benefits at 70 is also a bad idea if you're in poor health and you won't have a spouse relying on survivor benefits. That's because you're unlikely to break even for your delayed claim in this situation.
When you delay starting your Social Security benefits, benefits increase — but you miss out on the money that you'd be getting each month if you had started payments earlier. You have to live for long enough so higher future benefits make up for the missed money. Often, this takes over a decade to do depending on how long you delay. You typically have to outlive your projected life expectancy in order to end up with more lifetime income due to a delayed claim.
If you aren't in good health, odds are that you'll end up with less than if you'd claimed early. In fact, if you pass away before 70, you might end up without a single dollar of benefits.
Now, if you were married and you earned more than your spouse, then delaying your claim would still make sense even if you're in poor health. Doing so would increase your spouse's survivor benefits, which they might need to rely on — especially if you did pass away at a younger age. But, if you aren't married and don't have a spouse who will need your help maximizing Social Security, waiting until 70 makes no financial sense when your health is poor, and outliving your life expectancy probably isn't in the cards.
If you're at risk of running out of savings
Finally, if you are not working and are relying on your savings with the goal of making it until 70 to claim benefits, you'll want to make sure you aren't draining your account dry. You need to maintain a safe withdrawal rate to make your savings last because you'll need that to supplement your benefits. If you need Social Security in order to avoid spending down your assets, you're much better off with an early claim.
In each of these three situations, delaying benefits until 70 simply isn't a smart choice — despite what studies might say about what's optimal most of the time. You should claim at a younger age because it's the right choice given your personal financial circumstances.
The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
The $22,924 Social Security bonus most retirees completely overlook
Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
View the "Social Security secrets" ›
veryGood! (47718)
Related
- Former Danish minister for Greenland discusses Trump's push to acquire island
- Greek government’s plans to legalize same-sex marriage win key opposition backing
- AP Week in Pictures: Latin America and Caribbean
- Marvin Harrison's Ohio State football career is over as star receiver enters NFL draft
- Nearly half of US teens are online ‘constantly,’ Pew report finds
- Lawsuit filed against Harvard, accusing it of violating the civil rights of Jewish students
- Congressional Office Agrees to Investigate ‘Zombie’ Coal Mines
- Jessica Simpson Recreates Hilarious Chicken of the Sea Moment With Daughter Maxwell
- New data highlights 'achievement gap' for students in the US
- Millions of tiny plastic nurdles prompt fears of major troubles in Spain after falling from vessel
Ranking
- Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
- Indonesia and Vietnam discuss South China sea and energy issues as Indonesian president visits
- Mel Tucker appeal of sexual harassment case denied, ending Michigan State investigation
- Pennsylvania police officer shot, suspect injured during confrontation
- Global Warming Set the Stage for Los Angeles Fires
- 'Jellyfish', 'Chandelier' latest reported UFOs caught on video to stoke public interest
- The US relationship with China faces a test as Taiwan elects a new leader
- 2 dead, 3 rescued after a boat overturns near a southeast Alaska community
Recommendation
What to know about Tuesday’s US House primaries to replace Matt Gaetz and Mike Waltz
Bill Belichick-Patriots split: What we know and what's next for head coach, New England
Guyana rejects quest for US military base as territorial dispute with Venezuela deepens
Usher Proves There’s No Limit in Star-Studded Super Bowl Halftime Show Trailer
Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
Ohio woman who miscarried at home won’t be charged with corpse abuse, grand jury decides
Boat propeller gravely injures endangered whale calf, NOAA says
North Korea to welcome Russian tourists in February, the country’s first since the pandemic