Research shows that most people should take Social Security at age 70. Here’s why this may not be the best move.

Choosing your Social Security filing age is perhaps the most important retirement decision you’ll make because it can affect your benefit amount by hundreds of dollars a month.

You can start claiming as early as age 62, but that comes at a high price: a permanent benefit reduction of up to 30%. If you wait until age 70, you’ll earn the maximum payout possible based on your work history, with a bonus of at least 24% on top of your full benefit.

Despite the reduction in benefits, 62 is one of the most popular enrollment ages. According to 2023 data from the Social Security Administration, about a quarter of men and women file at age 62, while fewer than one in 10 wait until age 70.

When it comes to the ideal age to take Social Security, however, the data is clear: 70 is by far the best time for most retirees. While the data is compelling, here’s why it might not be the best move for your retirement.

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Research shows that filing at age 70 is a no-brainer

Getting Social Security benefits at age 70 can maximize your monthly income, sometimes increasing your benefit amount by several hundred dollars a month. But for most older adults, it can maximize lifetime income.

In a 2019 report from United Income, researchers used data from the Social Security Administration to examine retirees’ claims decisions and how those decisions affected their lifetime income. They then determined how many retirees made the ideal choice to maximize their income and at what age older adults should file to earn as much as possible.

They found that filing before age 64 is the ideal choice for just 6.5 percent of retirees, while 57 percent could have earned more overall by filing at age 70. household around $111,000 in total lifetime income.

A separate, similar study by the National Bureau of Economic Research found that 99.4 percent of retirement households could maximize their lifetime income by waiting until at least age 65 to file, while 91.6 % would be best financially if I claim at age 70.

Additionally, the study found that, especially for those ages 55 to 62, taking Social Security at the financially optimal age could result in lifetime earnings of about $181,623.

When it’s worth getting benefits early

The data may be clear that taking benefits at age 70 can maximize your total lifetime income. However, finances are only part of the equation when it comes to deciding on your filing age. Other factors, such as health and marital status, can play an equally important role in this decision.

If your health deteriorates in your 70s, filing for benefits early can give you more time to enjoy your retirement. No one can predict the future, of course, but life can throw curves in an instant. Depositing early will lower your monthly payments, but it can also help you make the most of every moment should the unthinkable happen.

Also, if you are married to someone who is also entitled to Social Security, it may be a good idea to coordinate your claim ages. For example, one person may wait until age 70 to earn the maximum payout, while the other deposits at age 62 to make early retirement a little more affordable.

Finally, filing early can be a smart option if you’re on the fence about when to claim. If you change your mind within 12 months of receiving benefits, you can withdraw your claim and reapply later. But if you delay the benefits from the start and regret your decision, you can’t go back in time for a change.

Regardless of your situation, finances will only play a role in your decision. If your main goal is to earn as much as possible in retirement, delaying your claim until age 70 is probably your best bet. But if you plan to retire early for health or other reasons, it sometimes pays to file early. You may have to make some financial sacrifices, but retirement is about more than money.