Key Points
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You get credit for delaying your Social Security claim past full retirement age.
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Once you turn 70, there’s no financial incentive to wait on benefits.
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Holding off too long could actually cost you.
One of the biggest financial decisions you might make in retirement is figuring out when to claim Social Security. And you’ll be rewarded if you decide to delay your claim beyond full retirement age, which is 67 for anyone born in 1960 or later.
For each year you hold off on taking benefits beyond full retirement age, those checks get a permanent 8% boost. So if your full retirement age is 67, filing for Social Security at 70 gives you benefits that are 24% higher.
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But while it could make sense to delay your Social Security claim until age 70, one thing that makes no sense is to wait beyond age 70 to file.
Because delayed retirement credits run out at 70, waiting longer than that only denies you income you could be collecting sooner. And if you wait too long beyond your 70th birthday to file for Social Security, you could have a serious loss on your hands.
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Social Security will pay recipients up to six months of retroactive benefits. So if you delay your claim past full retirement age and don’t file for benefits until you’re 70 and three months old, there’s not much to worry about. Social Security will pay you three months of retroactive benefits dating back to your 70th birthday.
If you don’t file for benefits until 71, though, you risk losing out on six months of Social Security income (or more, depending on your exact filing date). That’s money you’re giving up for no reason.
So if you’re going to delay your claim past full retirement age for larger checks, don’t wait beyond your 70th birthday to sign up for Social Security. There’s no reason to forgo money you have every right to collect.
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