Many Americans are told that delaying Social Security benefits until age 70 is the smartest financial move. After all, waiting can significantly increase monthly payments, providing a more substantial cushion for later retirement years. But for some retirees like Tim F., a former healthcare professional, the decision to delay came with unexpected consequences and regret.
This article explores why some people regret waiting until 70 to claim Social Security and what future retirees should consider when making this critical decision.
The Logic Behind Delaying Benefits
Under current Social Security rules, individuals can claim benefits as early as age 62. However, the longer you wait (up to age 70), the more you receive monthly. The Social Security Administration (SSA) states that delaying benefits increases payments by about 8% per year past full retirement age. (SSA Delayed Retirement Credits)
For example, someone whose full retirement age is 67 could receive 124% of their monthly benefit by waiting until 70. Financial advisors often tout this strategy as a way to maximize lifetime income, particularly for those with longer life expectancies.
The Other Side: Regrets and Reality
Tim F., now retired, followed conventional advice and waited until 70 to claim his benefits. Despite receiving higher monthly checks, he later reflected that the decision came at a cost.
“I felt like I was chasing a financial number without considering my lifestyle and health,” he told Yahoo Finance. Tim had planned for a vibrant retirement filled with travel and adventure, but by 70, his energy and health weren’t what they were at 65. “The window for making the most of my retirement years had narrowed.”
This regret is not uncommon. Many retirees underestimate how rapidly health can decline or how quickly interests and energy change in their later years. Others overlook the emotional cost of deferring financial security.
The Break-Even Point
One key metric often cited in Social Security planning is the “break-even point” — the age when the total value of delayed benefits surpasses the cumulative benefits one would have received if claiming earlier. Typically, this point is somewhere around age 80.
However, life doesn’t always cooperate with math. If a person dies before hitting that break-even point, the financial benefit of delaying is lost. As a result, those with shorter life expectancies or uncertain health may do better by claiming earlier.
Missing Out on Retirement Freedom
Beyond finances, some retirees express regret about missing the “younger” part of retirement. Those who delay claiming often continue working longer or live frugally in hopes of a better payout later.
“I kept working past 66, even when I didn’t have to,” said Tim. “I wanted to wait for that bigger Social Security check. But now, I realize I missed years when I had more freedom and ability to enjoy life.”
This echoes a growing sentiment among retirees: money isn’t the only retirement asset — time, health, and opportunity matter just as much.
Health Risks and Unpredictability
Health risks become more pronounced with age. Chronic illness, reduced mobility, or even the loss of a spouse can drastically alter what retirement looks like. For people in poor or uncertain health, waiting to claim Social Security can be a gamble.
The Centers for Disease Control and Prevention (CDC) reports that the average life expectancy in the U.S. is about 76 years as of 2023. (CDC Life Expectancy Data) That statistic alone suggests that some retirees may never see the long-term payoff of delaying benefits.
When Waiting Does Make Sense?
Despite the potential regrets, waiting until 70 is still a smart move for many people, especially those in good health with other income sources to support early retirement. Married couples may benefit if the higher earner delays, as it can increase the surviving spouse’s survivor benefits.
Also, those concerned about outliving their savings may find peace of mind in a higher guaranteed income for life.
Key Takeaways for Future Retirees
Before deciding when to claim Social Security, consider the following:
- Health and Longevity: Be realistic about your health and family history.
- Lifestyle Goals: Consider how you want to spend your 60s versus your 70s.
- Financial Needs: Evaluate whether you need the income now or can afford to wait.
- Spousal Benefits: Look at how your timing affects your partner’s benefits.
- Break-Even Point: Understand when delayed benefits will truly pay off.
Final Thoughts
There is no one-size-fits-all answer when it comes to Social Security. While delaying benefits can result in higher monthly checks, it may not be the best choice for everyone. As Tim F. learned, time and health are finite resources.
Future retirees should weigh both financial and personal factors. It may help to consult with a certified financial planner and explore the SSA’s retirement estimator tools (SSA Retirement Estimator) to make the most informed decision.
Because sometimes, the “best” financial decision isn’t the one that brings the most joy.
Vikas is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, he empowers readers with actionable insights and clarity. When he’s not crafting impactful articles, you can find him sharing her expertise on Social Media. You can connect with him via email at [email protected].
