Claiming Social Security at 70 boosts benefits for retirees, experts say.

Claiming Social Security benefits at age 70 can significantly enhance both monthly and lifetime payouts, especially for those in strong health or who are the higher earners in their households. This strategy may prove advantageous as many people face the complex decision of when to start receiving these benefits, which can be claimed anytime after turning 62. The full retirement age is 67 for those born in 1960 or later, but delaying benefits until age 70 can result in an 8% increase for each year beyond full retirement age.

The urgency of this decision is heightened as many individuals approach retirement age and assess their financial readiness. Social Security typically replaces about 40% of pre-retirement income for workers earning an average salary, but most retirees need about double that amount to maintain their standard of living. As many find their retirement savings—including IRAs and 401(k)s—insufficient, delaying Social Security can lead to more substantial checks that help bridge the income gap.

There are specific scenarios where delaying benefits until 70 is particularly beneficial. For those in good health with a family history of longevity, the risk of not living long enough to recoup the benefits of waiting may be low. In such cases, the financial advantage often outweighs the wait. Furthermore, higher earners should consider the impact of their claiming decision on their spouse’s future benefits, as the surviving spouse may be eligible for survivor benefits based on the deceased’s higher earnings.

Overall, this decision requires careful consideration of individual circumstances, including health, financial needs, and family dynamics. As retirees navigate their options, understanding the implications of when to claim Social Security can make a considerable difference in their financial security during retirement.