10 Reasons to Claim Social Security After 70
What You Need to Know
Some clients should start claiming sooner, rather than late.
Clients who do put off claiming will increase their monthly benefits.
The increased monthly benefits can cause more good effects.
Your clients’ Social Security benefits will come in handy during their retirement.
More than 49 million people in the United States now receive Social Security retirement benefits.
They get regular income that keeps pace with inflation and isn’t subject to investment risks or stock market fluctuations.
Social Security is an invaluable resource, but if your clients plan ahead and wait to collect benefits, they can get even more value from the program.
Here are 10 reasons why your clients may want to put off claiming Social Security benefits until age 70.
1. Increased Monthly Benefit
By waiting until age 70, clients can maximize their Social Security benefit amount.
Delaying claiming past their full retirement age (typically around 66 or 67) earns them delayed retirement credits, resulting in a higher monthly benefit for the rest of their life.
2. Extra Inflation Protection
Social Security benefits are adjusted for inflation through cost-of-living adjustments, or COLAs. For 2023, the COLA is 8.7%.
By delaying benefits claiming, clients have a higher starting point, which means their future benefit increases due to COLAs will be more substantial.
3. More Financial Stability
If clients wait until age 70 to claim, the increased monthly benefit will likely cover a wider range of expenses.
4. Better Spousal and Survivor Benefits
If a client is married, the decision to delay claiming can also benefit the spouse.
Spousal and survivor benefits are based on the primary earner’s benefit amount, so increasing the primary earner’s benefit will provide higher potential benefits for the spouse in the future.
5. Richer Longevity Protection
If a client anticipates having a longer life expectancy or having a family history of longevity, delaying Social Security can be a smart move.
It helps ensure that the client will have a more substantial income stream much later in life.
