Should You Still Wait Until 70 to Claim Social Security?
A recent Kiplinger article explores the widely debated question of whether delaying Social Security until age 70 remains the best strategy—even in light of evolving policy and economic conditions.
Here's what clients should know:
- Policy updates don’t change core strategy
Despite recent reforms—like the repeal of the Windfall Elimination Provision and Government Pension Offset under the Social Security Fairness Act—general guidance on deferring benefits remains the same. - Four personalized claiming scenarios
- Couples both claiming at 70: Ideal for maximizing lifetime income and survivor benefits—but requires a bet on longevity and program solvency.
- Singles: Health-driven decision—poor health may justify claiming at full retirement age or earlier; good health supports waiting until 70 (with an 8% annual boost past Full Retirement Age (FRA).
- Those still working: Generally advised against claiming before FRA due to earnings limits and benefit reductions.
- Legacy-focused individuals: Early claiming can free up funds to invest and leave a larger estate—but depends on investment returns versus delayed benefit growth.
- Solvency concerns acknowledged
The Social Security trustees’ latest report projects trust fund depletion around 2035—with only about 77% of benefits payable thereafter—reinforcing the importance of contingency planning. - Call for customized guidance
The article strongly advocates for tailored advice, factoring in health, family longevity, tax impact, income needs, employment status, and legacy goals.