You probably shouldn't wait till 70 to claim Social Security. Here's math to open your eyes (but nobody likes to show)

Moneywise

Wed, December 17, 2025 at 10:07 AM EST

9 min read

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On paper, it seems rather obvious that the best way to optimize your retirement is to delay claiming Social Security for as long as possible.

According to the Social Security Administration, taking your benefits as early as possible (age 62 for those born after 1960) could result in lower monthly payments. At age 67, you qualify for full benefits, but if you delay your claim until age 70, you could enjoy a 24% total boost to monthly benefits. At 70, your monthly benefit stops increasing.

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With this in mind, many financial planners recommend delaying benefit claims for as long as possible until you turn 70. However, this relatively simple math overlooks some key variables that might shock some retirement planners.

“Age 70 is not the most financially rewarding age to initiate benefits unless an individual has a low discount rate and/or is confident they will live several years past their life expectancy,” says an article published in the Journal of Financial Planning written by Yale University and Pomona College economics professors (1). The discount rate is the expected average rate of return, indicating the present value of all your future payments. It is used to decide if it's worthwhile to wait for Social Security.

They said their calculations “do not support the presumption that the vast majority of people who choose to start their Social Security retirement benefits before age 70 are making a mistake.”

Here’s why some academics are suggesting an earlier retirement could be a better option for some.

Hidden risks

When recommending delayed benefits, academics and economists use simple and generalized assumptions that do not fully reflect the reality of most retirees. That’s according to Derek Tharp — a financial advisor and associate professor of finance at the University of Southern Maine.

In an article published in The Wall Street Journal, Tharp argues that this simple spreadsheet calculation assumes that “future dollars are worth almost the same as today’s dollars (2).” This assumption is based on another assumption: that a retiree invests primarily in ultra-safe assets that earn little to no returns after inflation.

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By doing so, economists have missed opportunity cost, which is the returns of the forgone option.

“Most people don’t have portfolios consisting of assets that earn just 0% to 2%. Rather, their portfolios hold a mix of stocks and bonds — which historically have earned closer to 5% above inflation,” he wrote. “This difference isn’t a matter of trivial academic assumptions. Assuming you’ll earn about 5% rather than less than 2% on Social Security income can completely change the math; it makes delaying benefits much less attractive.”

Retirees who delay claiming Social Security may also need to draw down their savings and investments to cover living expenses, harming their nest egg and future returns.

Another risk for benefit delayers is mortality, according to Tharp. Life expectancy is 78.4 years, according to the Center for Disease Control (CDC), but your individual lifespan could be different from this broad average. If you die early, you could be “leaving hundreds of thousands of dollars on that table that otherwise could have been spent or given to loved ones or causes one cares about,” says Tharp.

To account for these risks, he recommends using a higher discount rate while calculating the present value of future benefits.

“Retirees with modest portfolios, health concerns, or a propensity to underspend may see effective discount rates of 6%-8% or more, which shifts the decision strongly towards early filing,” he writes in an article for Kitces (3). “Conversely, retirees with substantial resources who are less vulnerable to policy or sequence of returns risks may still benefit from delaying until age 70.”

Work with a professional advisor to make a plan

If you need a hand figuring out when to take Social Security, it may make sense to speak with a professional advisor. They can help you prioritize, plan your future and find the right timeline for your specific needs.

Research from Vanguard shows that working with a financial advisor can add about 3% to net returns over time. If you started with a $50,000 portfolio, professional guidance could mean more than $1.3 million in additional growth over 30 years, depending on market conditions and your investment strategy.

Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.

A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations — two key factors in building the right asset mix for your portfolio.

Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.

Besides the math, there are also lifestyle factors that many retirees overlook while making this crucial decision.

Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)

Lifestyle factors

Using a higher discount rate, as Tharp suggests, could help you capture all the financial risks you face while deciding when to start claiming Social Security benefits. But it doesn’t capture the lifestyle factors that are crucial for this decision.

Not only is a dollar worth more today than tomorrow, it’s also more flexible. Income in your 60s can be a lot more useful than in your 80s, when your health and mobility might be restricted. The average healthy life expectancy in the U.S. is just 63.9 years, according to the World Health Organization, so there is a chance you’ve lost some of the best years of your retirement if you delay benefits until 70.

These factors could be why the average retirement age in the U.S. is 62, according to MassMutual (4), and why only 10% of retirees wait until 70 to claim benefits, according to the Bipartisan Policy Center analysis of SSA data (5).

Take advantage of discounts to offset inflation

If you’re concerned about rising costs eating into your retirement savings once you’re no longer earning income, you’ll want to find ways to cut back on spending and tap into discounts where you can.

Organizations like AARP offer older adults rebates on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.

As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but they can also help you make informed financial and health decisions.

AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.

Next steps

A simple spreadsheet calculation doesn’t capture all the risks and nuances of your personal finances. So rather than delaying Social Security for as long as possible, use better assumptions and a higher discount rate to figure out the real present value of future cash flows from benefits.

You’ll also want to make sure you have an emergency fund ready and a health care plan in place.

Prepare your emergency fund

There are plenty of high-yield accounts out there, but it pays to shop around and store your emergency funds with the company offering the highest available interest rate. And if they suddenly lower their rate, start shopping around again and make sure to move your funds where they’ll earn the most interest.

SoFi offers a high-yield account you may want to consider — with no fees, no monthly maintenance costs and no minimum balance requirements.

You can earn 4.30% APY on savings balances and 0.50% APY on checking balances with direct deposit or qualifying deposits too. When you set up a direct deposit, new account holders can even get a cash bonus of up to $300.

Deposits are insured up to $250,000 through SoFi Bank, with additional coverage up to $2 million through the SoFi Insured Deposit Program.

Consider health care options

When you sit down to create a retirement plan that focuses on your finances, you’ll also want to prepare a plan for your physical health once you no longer have the benefits a job provides.

Without proper planning, paying for long-term care could rapidly deplete your retirement fund. In many cases, the burden of paying for care ends up falling on family members — which could strain their finances.

Rather than hope your health holds out, you might instead consider long-term care insurance to help foot the bill. It covers the costs of in-home assistance, nursing homes and assisted living facilities.

GoldenCare offers different options based on your needs, including hybrid life or annuity with long-term care benefits, short-term care, extended care, home health care, assisted living and traditional long-term care insurance.

You probably shouldn't wait till 70 to claim Social Security. Here's math to open your eyes (but nobody likes to show)