I’m a Retirement Planner: Here’s Why Delaying Social Security Until 70 Could Cost You Money

Core Insights - The conventional advice to wait until age 70 to claim Social Security benefits may not be suitable for everyone, as individual circumstances can significantly impact the outcome [1][2] Group 1: Life Expectancy and Break-Even Point - Delaying Social Security benefits until age 70 can lead to a situation where individuals do not live long enough to reach the break-even point, which is typically around age 81 or 82 for those who delay claiming until 70 [3] - The average life expectancy is 75.8 years for men and 81.1 years for women, indicating a high likelihood that waiting until 70 may not be beneficial for many individuals [3] Group 2: Impact of Spousal Death - If one spouse passes away prematurely, the surviving spouse may lose a Social Security check and could be pushed into a higher Income-Related Monthly Adjustment Amount (IRMAA) tier, negating any net income advantage from delaying benefits [4] Group 3: Opportunity Cost of Delaying Benefits - By adhering to the traditional mindset of waiting until age 70, individuals may miss the opportunity to invest or strategically use those funds earlier, potentially yielding higher returns than the deferred Social Security benefits [5]