Studies tell you when to claim Social Security — but you may not want to listen

If you want to maximize your chances of receiving the highest lifetime Social Security income, studies provide the answer about when you should claim benefits.

The optimal age to claim for most people is 70, according to a study called The retirement solution hidden in plain sight. This study found that 57 percent of retirees would have more lifetime wealth as a result of a delayed claim, even though only 4 percent of seniors are starting their benefits right now at age 70. The fact that so many people make the suboptimal choice and claim benefits early costs retirees as a whole about $3.4 trillion in potential income that they could have had if they had waited.

These numbers are pretty compelling, but they should not you’re actually convincing yourself to claim Social Security at 70 in every situation. Here’s why.

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Studies tell only part of the story

While the odds are that starting Social Security benefits at age 70 will result in higher lifetime income, the truth is that 57% is not 100%. For some retirees, in fact, an earlier request do what results in higher lifetime income. You may be one of those retirees if you are not in good health, likely will not outlive your life expectancy, and have no surviving spouse who is dependent on Social Security survivor benefits.

Even if you i am Among the majority who will likely end up with more lifetime benefits if you claim at age 70, this still doesn’t mean you have to listen to that study. You may decide to claim Social Security early because:

• You want to retire earlier than age 70 and need Social Security benefits to do so.
• Better to get less money at a younger age, when you can enjoy it more — than wait until you’re a rich retiree who may not have the health or stamina to travel at that point.
• You need to retire younger than 70 for practical reasons, and you’d go through your savings too quickly if you didn’t have Social Security benefits to supplement them.

These are all good reasons to start checks well before age 70 — and even as early as age 62, when you become eligible for benefits.

The key is to make an informed choice. You have to i know you reduce your monthly benefits and possibly your lifetime benefits and you have to be okay with that. You also need to make sure you have other sources of income, because you can’t live on Social Security alone — especially if you’ve applied for benefits early and had them reduced.

If you’re aware of the downsides of an early claim and still decide it makes sense for you, then there’s nothing wrong with going ahead with this plan, despite what the studies might say.

Optimizing your lifetime benefits isn’t everything

While there’s certainly an argument to be made that you should try to squeeze every dollar out of Social Security, the truth is that many people constantly choose to make decisions in life that don’t optimize their finances. This ranges from taking a lower paying job because you like it more to deciding to leave the workforce early even though you could make a lot of money staying.

As long as your decision doesn’t put you at risk of financial ruin, you should consider life factors along with your financials to make the Social Security choice that’s right for you.