The best things don’t always come to those who wait, but bigger Social Security checks do, which is why one expert tells retirees to claim benefits with delayed gratification in mind.
Marty Burbank is an estate planning and elder law attorney, retirement advisor and the founder of OC Elder Law in Orange County, California. Both local and national publications like the Orange County Register and Forbes have recognized him for his work helping veterans and retirees plan for their financial futures, and he sits on several prominent boards.
“My experience working with seniors and veterans on their financial and legal planning has given me a comprehensive understanding of the strategic considerations around Social Security benefits,” he said. “My insights are grounded in years of advising clients on retirement planning, including when and why to claim Social Security benefits.”
If You Can Afford To Delay, It Pays To Wait
The full retirement age — when you’re eligible to receive your complete benefit — is 67 for anyone born in 1960 or later. Retirees can claim Social Security at 62, but they’ll lose 30% of their benefit, or five-ninths of 1% for every month they claim before their normal retirement age.
But if you wait past your full retirement age to claim, the SSA will increase your monthly payment by two-thirds of 1% for every month you hold out.
“In my practice, I’ve encountered many retirees who opt to delay claiming their Social Security benefits until they reach 70,” said Burbank. “The rationale behind this decision is based on maximizing the monthly benefit amount. For every year beyond full retirement age that one waits to claim, the benefit increases by 8%. This can significantly enhance an individual’s income stream in later retirement years, a critical consideration for those concerned about outliving their savings.”
Holding Out Can Benefit Survivors, Too
Burbank, himself an accomplished Navy veteran, recalled the case of a retired naval officer who leaned on his military pension and savings until he could claim the maximum Social Security benefit at age 70.
“This strategy allowed him to not only increase his own monthly benefit but also strengthen the financial security of his spouse, who would be eligible for survivor benefits,” he said. “In situations like these, the decision to delay Social Security is not just about numbers. It’s about providing peace of mind and ensuring long-term stability for oneself and loved ones.”
Waiting Works Only With a Nest Egg and a Plan
The Navy veteran Burbank advised had a military pension to hold him over while he grew his Social Security payment by amassing delayed retirement credits. If you’re planning to delay claiming, you’ll need an income source to cover those leaner years and a strategy for adjusting along the way.
“From my observations, individuals who decide to wait often have diverse income sources to bridge the gap before claiming Social Security,” said Burbank. “These can include pensions, annuities, investment income or even part-time work. It’s crucial to have a well-thought-out plan for this interim period, which can involve budget adjustments, tapping into specific savings accounts or leveraging assets in a tax-efficient manner.”
Claiming at 62: The Argument Against Delaying Rarely Holds Up
According to MarketWatch, most experts join Burbank in advising their clients to wait until 70, but others, like author and radio host Dave Ramsey, suggest claiming benefits at 62 and investing every dollar to compensate for the reduced monthly payment.
So, what’s the right age to claim?
MarketWatch writes, “The short answer is wait until 70 to claim Social Security.”
That blunt statement is based on a recent Journal of Financial Planning study that found retirees who claim early and invest their benefits are unlikely to match the gains they’d receive from waiting for a larger payment.
Either Way, Work With a Pro To Craft a Plan That’s Right for You
A long list of variables will determine the age that’s right for you, including your income, savings, health, marital status, tax bracket, whether you have a pension, if you plan to work part time, etc.
Once you claim benefits, you can’t change your mind — after a year, you’ll be locked in for life. The stakes are high, so work with a professional to curate a custom strategy for when to claim.
“Given the complexities surrounding Social Security and retirement income planning, I always recommend retirees seek personalized advice from financial and legal professionals,” said Burbank. “Tailoring a strategy to one’s unique circumstances can make a significant difference in the quality of life during retirement. My work with clients aims to provide them with the information and resources needed to make informed decisions that align with their goals and values.”
