3 Reasons You May Want to Claim Social Security Before Age 70

Social Security's earliest claiming age -- 62 -- remains its most popular, with just under a quarter of eligible seniors choosing to sign up at this age in 2023. However, it's slowly been losing ground to older ages, including age 70 when you qualify for your maximum Social Security benefit.

However, waiting until 70 to claim comes with its own drawbacks. Here are three reasons you may prefer to sign up earlier.

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1. You can't afford to delay benefits

Some seniors claim Social Security benefits at 62 simply because they don't have another choice. They may not be able to work due to health or family caretaking responsibilities, and they might have little to no personal savings of their own.

The idea of getting larger Social Security checks by delaying your application date is appealing, but it's hard to justify when you have immediate bills you have no other way to pay. Larger checks down the road won't help you if you lose your home or wind up in debt today. It's best to apply early if you need to, even if this ultimately results in a smaller lifetime benefit.

2. You have a short life expectancy

Delaying your Social Security application can lead to a larger lifetime benefit, but this is usually only the case for those who live into their 80s or beyond. Those with terminal illnesses or poor personal or family health histories might do better by claiming earlier so they can get as many checks as possible while they're still alive.

However, those with dependents should be aware that claiming early not only reduces the size of your own checks by up to 30%, but it also shrinks the survivors benefits your family could be entitled to after you pass. If you don't need benefits to pay your expenses today, you may prefer to skip Social Security altogether so your family can receive larger checks after you're gone.

3. You're the lower-earning spouse

Married couples aiming to maximize their household benefits often choose a strategy that takes their earnings history into account. When both partners have earned similar amounts, each may choose to delay their benefits, health and financial circumstances permitting.

When one spouse has earned significantly less than the other, it's more important for the higher earner to delay benefits. Every month you delay Social Security increases your checks by a certain percentage, and that leads to a higher dollar-value increase for those with a higher earnings history.

The lower earner could claim Social Security early to help their spouse delay benefits. The higher-earning spouse could wait until they qualify for their largest checks. Then, when they apply, the lower-earning spouse could check to see if switching to a spousal benefit would net them more money. A spousal benefit is worth up to one-half of the amount the worker is eligible for at their full retirement age (FRA). This is 67 for most workers today, though some older adults have an FRA as young as 66.

Make a plan, but stay flexible

Having a Social Security claiming age in mind can help you estimate how much you'll get from the program and how much of your retirement expenses you'll need to cover on your own. You can estimate your Social Security benefit at every claiming age using the tool in your my Social Security account. Compare this amount to your estimated monthly costs in retirement to figure out how much you'll need to come up with on your own.

Be prepared to adapt this strategy as needed. Your retirement timeline or health status could change, forcing you to rethink your Social Security plans. The program is also in danger of insolvency, though the government will almost certainly find a way to increase its funding. When this happens, workers and retirees alike will have to review their budgets and retirement plans to figure out how best to move forward.

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