When Should You Claim Social Security?

Abstract

When to claim Social Security is for many retirees among the most important financial decisions they will make. For many families, the lifetime expected value of future Social Security benefits exceeds half a million dollars. Waiting until age 70 to claim Social Security can raise one’s monthly benefit check by up to 76%, yet only about 1 in 20 recipients waits until age 67 or older. Delayed claiming offers two key advantages. First, by raising the level of guaranteed lifetime income, it can help reduce the risk of outliving one’s wealth. Second, for many people, waiting to claim can increase expected lifetime benefits. For individuals of average life expectancy, waiting until age 69 or 70 can boost expected lifetime benefits by 14%, or $60,000 for those with high (90th percentile) income. Waiting to claim can be even more beneficial for high-income couples, potentially increasing their expected lifetime benefits by more than 20%, or $150,000.