The Low Number of Claimants at Age 70
Based on recent analysis, the number of people delaying their Social Security benefits until age 70 remains low. Research cited by CNBC found that only about 8% of beneficiaries delay until the highest possible claiming age. Similarly, data on 2022 claimants showed that only 10 percent of individuals initiated benefits at age 70, with early claiming at age 62 being far more common. This contrasts with the advice of many financial advisors who advocate for delayed claiming to maximize lifetime income. While many seniors understand the financial benefits of waiting, the practicalities of retirement often lead to claiming earlier.
Recent trends show fluctuations in claiming behavior. An Urban Institute analysis in 2025 indicated an increase in early claims among retirees, a reversal of a previous long-term trend toward later claiming. This recent shift may be influenced by factors such as economic uncertainty and media attention on Social Security's long-term funding, even though the program is not expected to "run out" of money.
Maximizing Benefits: How Delayed Retirement Credits Work
For every year a person delays taking their Social Security benefits past their full retirement age (FRA), their monthly benefit amount increases by about 8%, up to age 70. These are called delayed retirement credits (DRCs) and can significantly boost a retiree's income for the rest of their life. For those born in 1960 or later, whose FRA is 67, waiting until 70 provides a 24% increase compared to claiming at FRA. This is a permanent boost that is also factored into subsequent cost-of-living adjustments (COLAs), helping benefits keep pace with inflation over time.
The delayed retirement credits are calculated monthly, not just annually. For each month a person waits beyond their FRA, they receive a benefit increase of two-thirds of one percent. This adds up to the full 8% for every year delayed. It is important to note that these credits stop accumulating once you reach age 70, so there is no financial advantage to delaying beyond that point.
Why Most People Don't Wait Until Age 70
There are several reasons why the majority of people claim Social Security before age 70, despite the clear financial incentives to wait. This decision is often driven by immediate needs, health, and a mix of emotional and financial considerations:
- Immediate Financial Need: Many retirees find themselves needing the income from Social Security to cover essential living expenses after leaving the workforce. A person may have stopped working due to job loss, health issues, or simply a desire to retire and may not have sufficient savings to bridge the income gap until age 70.
- Health and Longevity Concerns: The fear of not living long enough to benefit from delayed claiming is a major factor. While the higher monthly payments are attractive, some individuals prefer the certainty of receiving a benefit stream sooner, especially if they have health problems or a family history of shorter life spans. For most, the break-even point where waiting to 70 pays off typically occurs in the late 70s or early 80s.
- Employment Changes: If a person stops working before age 70, their earnings cease, which might necessitate claiming benefits to maintain their lifestyle. While some might draw on other retirement accounts to delay Social Security, not everyone has that option.
- Spousal Coordination Issues: For married couples, the claiming decision is more complex. While delaying the higher earner's benefit can maximize survivor benefits, not all couples coordinate effectively or have the financial means to do so.
A Comparison of Claiming Ages
To highlight the impact of the claiming decision, consider an individual with an estimated full retirement benefit of $2,000 per month at their FRA of 67. The following table illustrates how the claiming age affects the monthly benefit amount:
| Claiming Age | Monthly Benefit (Relative to FRA) | Example Monthly Benefit | Key Consideration |
|---|---|---|---|
| Age 62 | ~70% | $1,400 | Receives payments for longer, but each check is permanently reduced. |
| Age 67 (FRA) | 100% | $2,000 | Receives the full earned benefit amount. |
| Age 70 | ~124% | $2,480 | Receives the maximum possible monthly benefit for life. |
The Financial Implications of the Decision
Understanding the financial consequences of when you claim is critical. Waiting until age 70 provides a larger, inflation-adjusted income stream for the rest of your life, which can be a valuable longevity insurance policy. This is especially important for women, who tend to live longer than men, on average. A higher survivor benefit for a spouse is another significant advantage of delaying.
Conversely, claiming early means accepting a permanently reduced monthly payment, which can be a hardship, especially if other retirement funds are depleted later in life. While it provides immediate cash flow, it sacrifices long-term financial security. The best strategy depends on a retiree’s individual health, financial situation, and family circumstances. Those who are in excellent health and have other assets to live on during the delay period are typically the best candidates for waiting.
For more information and tools to help calculate your specific benefit, the Social Security Administration's official website is an excellent resource Social Security Administration Official Website.
Conclusion: A Personal Choice
While the financial argument for delaying Social Security until age 70 is strong, the statistics show that the vast majority of retirees choose to claim earlier. This is not necessarily a poor decision for everyone, as personal health, immediate financial needs, and life expectancy projections play a crucial role. The optimal claiming strategy is a deeply personal choice that requires a careful weighing of short-term cash flow needs against the long-term goal of maximizing guaranteed income in retirement. By understanding the mechanics of delayed retirement credits and the real-world factors influencing claiming behavior, retirees can make a more informed decision that aligns with their specific circumstances and goals.
