Deciding when to claim Social Security is one of the most important financial choices retirees face. Should you start at age 62, wait until 65, or hold off until 70? While many factors play into this decision, one stands out above the rest: how long you expect to live.
Why Life Expectancy Is the Key
According to the Social Security Administration, your total lifetime benefits depend heavily on your longevity. The longer you live, the more sense it makes to delay claiming Social Security. The SSA’s Life Expectancy Calculator is a helpful tool to estimate this.
Claiming Early vs. Waiting: A Quick Breakdown
Let’s look at two scenarios using sample benefit figures from the Social Security website:
If You Live to Age 74.8 (Average Male Life Expectancy at Birth):
- Claim at 62: $1,400/month × 154 months = $215,600
- Claim at 65: $1,733/month × 118 months = $204,500
- Claim at 70: $2,480/month × 58 months = $143,800
In this case, claiming early at 62 yields the highest lifetime payout.
If You Live to Age 83.6 (Average Life Expectancy at Age 62):
- Claim at 62: $1,400/month × 259 months = $362,600
- Claim at 65: $1,733/month × 223 months = $386,500
- Claim at 70: $2,480/month × 163 months = $404,200
Here, waiting until 70 provides the biggest lifetime benefit.
Why Most Experts Recommend Waiting
Many retirees claim Social Security at 62—the earliest eligible age—because they need the money or worry about the program’s future. But experts like Gal Wettstein from Boston College and economist Laurence Kotlikoff argue that most people should wait until 70.
Kotlikoff’s advice? Plan for the “worst-case scenario”—living to 100. If you live longer than average, delaying benefits ensures you won’t outlive your income.
Key Takeaways
- Use the Social Security Life Expectancy Calculator to estimate your lifespan.
- If you expect to live past 80, delaying Social Security can significantly increase your lifetime benefits.
- Financial need, health status, and retirement savings should also factor into your decision.
Final Thought
While there’s no one-size-fits-all answer, understanding your life expectancy is crucial. Whether you’re planning for a modest retirement or aiming to stretch your income to age 100, timing your Social Security claim wisely can make all the difference
