I Plan to Delay Social Security Until 70, but 3 Things Could Change That

One of the biggest Social Security decisions you'll make is determining when to sign up for benefits. Nearly a quarter of Americans choose to claim shortly after becoming eligible at 62, but for me, that's never seemed like an appealing option.

I've always planned to sign up at 70 so I could get the largest checks possible and hopefully the largest lifetime benefit. But I don't consider my choice to be set in stone. If any of the following three things happened, I might choose a different claiming age.

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1. If my health takes a turn for the worse

Right now, I'm a pretty healthy person. Of course, I'm still in my mid-30s, so a lot can change over the next three decades. If I don't expect to live long at the time I become eligible for Social Security, that might cause me to sign up early.

Your claiming age affects your monthly checks and your lifetime benefit. Every month you delay Social Security increases your benefit by anywhere from 5/12 of 1% per month to 2/3 of 1% per month, and the longer you wait, the faster your checks grow. But there's more than just your monthly benefit to think about.

You also have to weigh your life expectancy. Delaying Social Security is usually the best play if you expect to live until your 80s or beyond and you can afford to wait to sign up. But if you don't think you'll live past your 70s, you'll probably get more money overall by claiming as soon as you can.

2. If an unforeseen issue prevents me from working and saving for retirement

I save 15% of my income for retirement each month, so I'm fairly confident I'll be able to cover my retirement costs on my own until I'm ready to sign up for Social Security at 70. But if I become unable to work for a long period, that could make it difficult for me to save as much as I planned.

In that case, I might either delay my retirement for a bit or claim Social Security earlier. This would give me a steady source of income I could use to supplement my checks. That's much better than falling into debt, even if it would lead to a smaller lifetime benefit.

3. If it makes sense for me to claim at a different age after the government reforms Social Security

Social Security is less than a decade away from insolvency. That doesn't mean benefits are going away. But right now, the program is headed for cuts of more than 22% if the government doesn't find ways to increase Social Security's funding.

Washington will likely intervene, but we don't know how it will tackle the problem. Politicians and experts have thrown a lot of ideas around -- everything from increasing the Social Security payroll tax rate to raising the full retirement age (FRA).

The ultimate fix will likely involve a combination of strategies. Some of them may affect workers and their ability to save for retirement while others may target retirees and the size of the benefits they receive.

When Washington decides on the reforms, workers and retirees alike will have to take a closer look at their retirement plans. Depending on the changes, it may make sense for me to rethink my claiming age. For now, though, I will continue to save as much as I can on my own so I'm prepared for whatever might happen with Social Security.

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