Longevity vs. Liquidity: Why Waiting Until 70 for Social Security Isn’t Always Smart.
The idea of delaying Social Security until age 70 to receive the biggest possible monthly check is appealing.
But is it always the best move? While waiting can maximize lifetime benefits for those who live long enough, it can also create short-term financial strain that may not be worth the trade-off.
Yes, Social Security benefits increase by 8% per year after full retirement age, but this only pays off if you live long enough to collect those higher checks.
The typical "break-even" point—when the total benefits from delaying surpass those from claiming earlier—is around 80-82 years old.
If your family history or personal health suggests you may not reach your mid-80s, waiting could mean losing out on years of payments.
Delaying benefits means relying on other retirement savings or income sources to cover expenses in your late 60s.
Drain savings faster, leaving less for later years.Increase withdrawal rates from investments, potentially hurting long-term financial stability.Limit lifestyle choices, forcing retirees to postpone travel, hobbies, or big purchases.
Instead of an all-or-nothing approach, some retirees choose a hybrid strategy—claiming Social Security at full retirement age (66-67) to lock in higher benefits than at 62 while preserving liquidity.