Delaying Social Security benefits until age 70 maximizes lifetime income for over 90% of retirees, studies show.
Retirees who claim Social Security before age 70 forfeit a median $182,370 in lifetime discretionary spending, according to research. Only 10.2% of households wait until the optimal age, despite data favoring delayed claims.
Studies from the National Bureau of Economic Research and United Income indicate that over 90% of workers benefit from waiting until 70. Early claims at age 62 reduce a $2,000 monthly benefit to $1,400, while delaying until 70 increases it to $2,480.
The increase stems from avoiding early filing penalties and maximizing delayed retirement credits. Full retirement age, typically 67, serves as the baseline for these adjustments.