You’ve probably heard that the best way to optimize Social Security is to delay benefits until age 70. On paper, the math seems convincing: your monthly benefit grows roughly 8% per year between 62 and 70. For someone eligible for $2,100 at 62, waiting until 70 could mean $3,720, a 77% increase in guaranteed, inflation-adjusted income.
Real life rarely plays out according to optimization charts, though. In fact, only about one in ten retirees actually waits until 70 to claim benefits. And for many, that’s not a mistake; it’s a rational decision.
The Risks of Waiting
Delaying Social Security can create several hidden risks. The most obvious is mortality risk: the possibility that you might not live long enough to fully benefit from those higher payments. Claiming earlier can mean more income in the years when you’re healthiest and most able to enjoy it.
There’s also sequence-of-returns risk. If markets fall early in retirement, and you’re drawing more heavily from your investment accounts while waiting to claim Social Security, those losses can permanently erode your nest egg. Starting benefits earlier can ease the pressure on your portfolio and preserve long-term flexibility.
Flexibility Matters
Once you start receiving Social Security, those payments are steady, but not flexible. You can’t ask the Social Security Administration for a lump sum to help a child buy a home, cover a large expense, or fund a once-in-a-lifetime trip. By claiming earlier and keeping more money in your investment accounts, you maintain the freedom to choose how and when to use your resources.
The Real “Right” Answer
For some, waiting until 70 is the right call. For others, claiming earlier supports a more balanced, fulfilling retirement. The smartest move isn’t always about squeezing every last dollar out of the system. Sometimes it’s about aligning your benefits strategy with your broader financial plan and the life you actually want to live.
If you’re unsure what timing fits your goals, our planners can help you model the tradeoffs and choose a strategy that’s right for you.