Personal Finance

Planning to Delay Social Security Until 70? Here's Why Your Strategy May Not Work Out

Maurie Backman

Published: February 13, 2025 1:59 pm

There’s a reason some people aim to file for Social Security at age 70 despite being entitled to their monthly benefits without a reduction much sooner than that. For each year a Social Security claim is delayed past full retirement age (FRA), which is 67 for anyone born in 1960 or later, those monthly benefits get an 8% boost. And that increase then sticks around permanently, thereby guaranteeing you higher monthly paychecks for life.

You may be planning to delay your Social Security claim until age 70, too. But before you bank on that strategy, recognize that it may not be feasible due to circumstances outside your control.

Will life get in the way of your Social Security filing strategy?

Unless you have a huge pile of savings, delaying Social Security until age 70 probably hinges on being able to work and collect a paycheck until age 70. But whether that’s feasible is up in the air.

Unfortunately, it’s not an uncommon thing for people to be forced into early retirement. Companies are notorious for driving out older workers once they reach a certain age. And while age discrimination is certainly illegal, proving it can be difficult.

Also, you never know when health issues might force you to quit your job at an earlier age than you’d like to. If arthritis makes it impossible to sit at a desk and type all day, you may have no choice but to resign. And if you have a job that involves physical work and your body decides it can no longer handle it at age 65, then you may have to retire and claim Social Security then rather than wait.

For this reason, you shouldn’t automatically assume you’ll be able to claim Social Security at age 70. You can certainly plan on it. But you shouldn’t neglect your savings efforts thinking you’ll have a larger monthly Social Security benefit to fall back on.

Make sure to save consistently

While delaying Social Security to age 70 could be a lucrative strategy in theory, since it may not work out, it’s important to save consistently for retirement throughout your career. The good news, though, is that if you give yourself a long enough savings window, you can build a large nest egg without having to part with 20% of your paycheck each month (though it’s worth noting that some financial experts do recommend doing that).

It’s also a good idea to consult with a financial advisor in the course of your retirement planning. A financial professional can help you maximize your paychecks so you’re setting money aside for the future while covering your expenses in the near term. They can also walk you through different Social Security filing strategies so you have all of your options.

For example, based on factors that include the amount of stress you have at work and your life expectancy, a financial advisor might suggest that you claim Social Security at FRA rather than wait until 70. So it’s good to discuss different approaches with someone who can give unbiased advice.