Laurence Kotlikoff and other experts suggest waiting until age 70 to claim Social Security to maximize lifetime benefits.

Laurence Kotlikoff, a Boston University economist, argues that retirees should "beg, borrow and steal" to avoid claiming Social Security at age 62. While 62 is the most popular age for claiming benefits, the math favors waiting until age 70. For individuals born in 1960 or later, claiming at 62 permanently reduces monthly benefits by approximately 30% compared to the full retirement age of 67. Conversely, waiting until 70 provides an 8% annual increase in benefits for every year delayed past age 67. Research indicates that the typical retiree who claims before age 70 loses roughly $182,370 in potential lifetime income. Experts note that while early claimants may benefit if they have a shorter life expectancy or need immediate cash flow, those who live past age 80 generally see a higher return on delayed claims. Furthermore, maximizing the benefit at age 70 provides a significant financial gift to a surviving spouse, as the larger benefit remains for life. Financial advisors suggest that if retirees have sufficient savings or pensions to bridge the gap, delaying Social Security is a strategic way to secure a larger, inflation-adjusted income stream.

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