# The Wait-to-Win Rule of Retirement Spending
Delaying retirement withdrawals creates a permanent income boost that compounds over time. This strategy works because your remaining savings continue growing while you spend down other assets first.
The mechanics are straightforward. If you retire at 65 but wait until 70 to claim Social Security, your monthly benefit increases by roughly 8% annually. A person who claims at 65 might receive $2,000 monthly. That same person waiting five years gets approximately $2,640 monthly for life.
This advantage extends beyond Social Security. By tapping taxable brokerage accounts or Roth IRAs first, your tax-deferred retirement accounts keep compounding untouched. Even modest market returns multiply significantly over five to ten years.
The tradeoff matters. You need accessible funds to cover expenses during the waiting period. Healthcare costs, inflation, and longevity risk all factor into the decision. Someone in poor health faces a different calculation than someone expecting a long retirement.
The wait-to-win approach rewards patience most for people in good health with secure income sources and adequate savings outside retirement accounts. Running the numbers with your specific situation reveals whether delaying makes sense.