Should You Retire at Age 70? Here Are the Pros and Cons
When it comes to Social Security, one of the biggest decisions you’ll make is when to claim your benefits. While you can start as early as age 62, waiting until age 70 can come with some powerful advantages—but it’s not the right choice for everyone.
Here’s a breakdown of the key benefits and potential drawbacks of delaying your Social Security retirement benefits until age 70.
Advantages of Retiring at Age 70
You’ll Get the Maximum Monthly Benefit
For every year you delay past your Full Retirement Age (FRA)—typically 66 or 67 depending on your birth year—Social Security increases your benefit by about 8% per year. That means if your FRA benefit is $2,000/month, waiting until 70 could boost it to around $2,640/month.
Higher Lifetime Benefits—If You Live Long Enough
If you live into your 80s or beyond, the total amount you receive from Social Security may be greater than if you had started earlier. This acts like longevity insurance, helping ensure you don’t outlive your income.
Increased Survivor Benefits for Your Spouse
The larger your monthly benefit, the more your surviving spouse could receive after your passing. If you’re the higher earner, delaying can help protect your spouse’s future income.
Inflation Protection Amplified
Social Security benefits come with cost-of-living adjustments (COLAs). A higher starting benefit at age 70 means those COLAs apply to a larger base amount—compounding your inflation protection.
Reduces Pressure on Other Retirement Savings
By delaying Social Security, you may use other income sources first, allowing Social Security to kick in later with a higher payout—helpful for managing longevity risk.
Disadvantages of Retiring at Age 70
Delayed Access to Benefits
If you wait until 70, you give up 8 years of potential payments (from age 62 to 70). If your health declines or you pass away earlier than expected, you might collect less overall.
More Strain on Personal Savings
You’ll need to rely on retirement savings or other income for longer. This could put pressure on your nest egg, especially if market conditions are volatile.
Less Time to Enjoy Retirement
Many people want to retire earlier to travel, spend time with grandchildren, or pursue passions while still young and healthy. Delaying may limit your active retirement years.
Not Everyone Can Work Until 70
Whether due to health issues, job market challenges, or caregiving responsibilities, not everyone is able—or wants—to work into their late 60s. This could create a financial gap.
You May Not Hit the Breakeven Point
Most experts estimate the breakeven age for delaying Social Security to be around 80–82. If your life expectancy is shorter due to medical or family history, you might not come out ahead.
Spousal Benefit Delays
If your spouse plans to claim spousal or survivor benefits based on your record, waiting to file could delay their benefits too.
Final Thoughts
Delaying Social Security until age 70 can be a smart move if you’re in good health, expect to live into your 80s or beyond, have enough savings to bridge the gap, and want to maximize benefits for your spouse.
However, it’s not a one-size-fits-all decision. Your health, financial needs, and lifestyle goals all play a role.
Need help deciding? Contact our team for a free consultation—we’ll walk you through your options and help you make the right choice for your retirement.