Is claiming Social Security at 70 the best option?

Waiting until age 70 to collect Social Security benefits provides the highest possible monthly payments as this is when delayed retirement credits stop accumulating. But does this strategy suit everyone? 

To answer this question, we’ll discuss the rules for claiming Social Security at 70 in this guide. We also talked to an industry expert who shared insights into the benefits of delaying retirement benefits and why most people don’t take this option.   

Rules for collecting Social Security benefits at 70 

Waiting until 70 to collect Social Security benefits lets retirees maximize their primary insurance amount (PIA). There are no additional benefit increases for delaying past this age.  

Retirees may even lose benefits for waiting longer than necessary. This is because the Social Security Administration (SSA) pays only up to six months of retroactive benefits. This means that by claiming benefits seven months after turning 70, a month’s worth of payout is forfeited. 

Benefit payments are also not automatic. The SSA recommends applying up to four months before retirees want the payouts to start. This gives the agency ample time to process the application and set up the payments.  

The SSA typically issues checks a month behind. This means that the benefits should start arriving the month after a person’s 70th birthday. For those born on April 18, for example, the first check should come by May.  

Get more information about how Social Security benefits work in this guide.  

Is it mandatory to take Social Security at 70? 

Claiming Social Security at 70 isn’t mandatory, although waiting until this age offers the highest possible payout. Retirees, however, have an eight-year window, usually between ages 62 and 70, to apply for benefits.  

Collecting monthly payments before or after reaching full retirement age (FRA) has its share of advantages and drawbacks. The age at which to claim Social Security is a personal choice. 

Want to know how early retirement impacts Social Security benefits? Find out in this guide. 

How to apply for Social Security benefits at 70 

Application is free and can be done online, by phone, or by visiting a local Social Security office. This is regardless of the applicant’s age.  

Marcia Mantell, founder and president of the retirement business development firm Mantell Retirement Consulting, Inc., recommends applying online for convenience.  

“The best way to apply for benefits is to use the application on SSA.gov. You’ll first need to set up your MySocialSecurity online account,” she explains. “There is a new required method for accessing your account using LOGIN.gov or ID.me. Make sure to confirm you can get into your account before starting the application process.”  

The next steps are straightforward:  

• Click on “apply for benefits” directly from the SSA.gov homepage 
• Choose “retirement benefits”  
• Click the blue “learn how to apply” box at the bottom of the page 
• Scroll down to the gray box to “submit an application” 
• Click the blue “apply online” box 

From that point, simply follow the form and fill in the information as required. 

Those who want to apply offline can contact 1-800-772-1213 to make an appointment. Applicants with hearing impairment can call the toll-free TTY number 1-800-325-0778. SSA representatives are available from Monday to Friday between 7 a.m. and 7 p.m.  

The SSA’s website also provides a downloadable checklist of the complete requirements.   

How waiting until 70 affects Social Security benefits 

By claiming Social Security at 70, retirees can earn the maximum delayed retirement credits (DRCs). These credits can increase the benefit amount by 0.66 percent for each month they delay retirement or 8 percent per year. Retirees stop earning credits at age 70. At this point, they are entitled to receive up to 132 percent of their primary insurance amount. 

This table illustrates how much retirement benefits can increase for every month retirement is delayed based on the SSA’s rules.   

The higher benefit amount will last for the rest of retirement and will be used to determine future increases tied to inflation. While earning delayed retirement credits increases survivor benefits, it doesn’t affect spousal benefits. This guide offers strategies for married couples on how to maximize Social Security benefits.  

Comparing Social Security at 62 vs 67 vs 70 

The earliest age to claim Social Security benefits for most retirees is 62. Doing so, however, can reduce the benefit amount by up to 30 percent, depending on the year they were born.  

By full retirement age, retirees are entitled to 100 percent of the primary insurance amount.   

People who wait until 70 before collecting benefits can receive up to a 32 percent bump on their PIA.  

The SSA’s benefits calculator can help provide an estimate of how much a person can receive in retirement.  

Benefits of claiming Social Security at 70 

The biggest benefit of waiting until age 70 to claim Social Security is the maximized monthly payout, according to Mantell.  

“Thanks to delayed retirement credits, they will receive ‘bonus’ income of 8 percent per year, increasing their primary insurance amount significantly,” she explains.  

 “A worker whose full retirement age is 67 and has a calculated PIA of $3,500 could increase their monthly income from Social Security by 24 percent, receiving $4,340, or an extra $840 per month.” 

Mantell highlights two other key benefits: 

• the annual cost-of-living adjustment (COLA) will be based on a much higher starting benefit 

• if the beneficiary is married, their spouse will receive the maximum survivor benefit if receiving a smaller benefit 

“Last consideration: Medicare Part B premiums are automatically deducted from Social Security monthly benefits once both programs are active,” Mantell adds. “Starting with a higher base benefit at age 70 leaves more net income after Part B premiums are deducted.”  

Bookmark our Retirement Planning News Section for easy access to more information about Social Security benefits. 

Should you wait until 70 to collect Social Security? 

With all the benefits, claiming Social Security at 70 can be an enticing option, but it doesn’t suit everyone. There are several factors in play, including: 

• health and life expectancy: those in good health and expect to live longer may find this strategy appealing 

• financial situation: those who have substantial retirement savings and investments can afford to delay retirement until 70 

• marital status: earning delayed retirement credits also increases survivor benefits of spouses and other dependents  

• tax implications: a portion of the benefits may be subject to federal income taxes depending on the total income from other sources 

“Only about 10 percent of retirees wait until 70 to claim,” Mantell says. “Unless you have a well-defined retirement income strategy in place that allows you to delay claiming without withdrawing too much of your personal assets to pay for living expenses, it’s a tall order to wait.  

“If you continue to work until 70, it might make sense to wait. Or, if you have money set aside to fund the three-year gap between FRA and age 70, you could wait.” 

Another option, according to Mantell, is to buy an income annuity to bridge the gap years.  

“Remember, if you are planning to leave a legacy, you can only leave your personal assets. Social Security benefits cannot be passed down to younger generations.” 

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