While most financial experts recommend waiting until age 70 to claim Social Security benefits, this may not always be the optimal decision for every retiree. Here’s why waiting could actually hurt your financial situation and your enjoyment of retirement.
1. You Could Be Forfeiting Benefits for No Reason
While waiting until 70 increases your monthly benefit, some individuals might receive a larger overall benefit by claiming earlier—especially if they qualify for spousal benefits.
For instance, a spouse may be entitled to up to half of the other spouse’s benefit at full retirement age (FRA), which can often be just as valuable or more than their personal benefit. By waiting until age 70 to claim their own benefit, they may miss out on several years of Social Security payments.
Additionally, if you’re the lower-earning spouse, claiming early might be beneficial, as you’ll be eligible for survivor benefits if your spouse passes away. This can significantly increase your benefits, making it potentially smarter to claim earlier.
2. The Risk of Not Living Long Enough to Benefit
While waiting until age 70 maximizes your benefits over a lifetime for those with long life expectancies, the reality is that not everyone lives long enough to reap the full benefits. If you have health issues that could shorten your life expectancy, claiming earlier might provide more financial security.
Furthermore, Social Security can help cover medical expenses, such as treatments for chronic conditions, so delaying your claim until age 70 could do more harm than good in certain situations.
3. Medicare Costs Can Be a Major Burden
Once you claim Social Security, you’ll automatically be enrolled in Medicare at age 65, with premiums deducted directly from your Social Security payments.
However, if you haven’t yet claimed benefits, you’ll have to pay for Medicare premiums out of pocket, which can be expensive. In 2026, estimated Part B premiums will rise to $206.50 per month—an 11.6% increase from 2025.
For retirees with smaller Social Security checks, claiming benefits earlier can help mitigate the rising costs of healthcare premiums, ensuring that you’re not left with a smaller check than expected due to high medical expenses.
The decision to claim Social Security at age 70 is often touted as the best financial move, but it may not always be the right choice for every individual.
Factors like spousal benefits, health considerations, and Medicare costs all play a crucial role in determining when to claim Social Security. It’s important to weigh these factors carefully and consider how your personal situation aligns with the timing of your claims.
