Millions of retired seniors today collect a monthly benefit from Social Security. For many of those people, that monthly benefit constitutes the bulk of their senior income.

That’s why it’s so important to do what you can to get the most out of Social Security. One simple move on your part could lead to a higher monthly payday for the rest of your life.

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When patience pays off

In March of 2024, the average monthly Social Security benefit among retired workers was $1,913.31. Meanwhile, you have a choice as to when to claim Social Security — and that decision will directly affect your monthly benefit.

If you claim Social Security at age 62, which is a route many seniors opt to take since it’s the earliest age at which you can file for benefits, your monthly checks will be reduced by about 30%, compared to filing at full retirement age, or FRA. This assumes that your FRA is 67, which is the case if you were born in 1960 or later.

On the other hand, you’re allowed to delay your Social Security claim past FRA. And for each year you do, up until the age of 70, your monthly benefit will get an 8% boost.

Let’s assume you’re eligible for the average recent monthly benefit of $1,913.31 at an FRA of 67. If you sign up at age 62, you’ll shrink that monthly payment down to $1,339.32.

On the other hand, if you delay your Social Security claim to age 70, you’ll end up with $2,372.50 per month. As such, filing for Social Security at age 70 instead of age 62 puts an extra $1,033 in your pocket each month throughout retirement. It’s that simple.

Should you delay your Social Security claim until your 70th birthday?

Delaying Social Security isn’t necessarily something everyone should do. If your health is poor and you’re unlikely to live a long life, then it could actually benefit you financially to claim Social Security early, as that may result in a higher amount of lifetime income from the program.

Furthermore, if filing for Social Security early gives you access to cash you use to generate more income, such as starting a business, then signing up at age 62 could be a great idea. You may also want to file early if you have a boatload of savings and are tired of pushing yourself to uphold a stressful job.

But in some cases, a delayed Social Security claim absolutely makes sense. Let’s say you’re nearing retirement with very little saved up. If you won’t be getting a lot of money out of your nest egg each month, you might need more Social Security to be able to cover your bills without worry. For example, if you can only safely withdraw $400 or $500 a month from your IRA or 401(k) plan, having an extra $1,000 and change each month from Social Security could be huge.

Similarly, if your health is great going into retirement, delaying your Social Security claim could result in a higher lifetime payout from the program. Also, the longer you live, the more you potentially risk depleting your savings. But having more Social Security coming your way could help minimize that risk.

Of course, filing for Social Security at age 70 won’t necessarily boost your monthly payments by precisely $1,033. The boost you’re eligible for will depend on what monthly benefit you’re entitled to, based on your personal wage history.

The point, however, is that there can be a ton of financial upside to delaying your claim until your 70th birthday. So it’s a move worth considering if you expect to be even somewhat reliant on Social Security once retirement begins.

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