Social Security benefits grow by 8% each year you delay claiming, reaching their maximum at age 70. But waiting until 70 isn't the right move for everyone.
If you die before collecting enough to offset the years you waited, delaying costs you money. Someone who dies at 69 receives nothing, even if they would have received larger checks. Family health history matters when you decide when to claim.
Couples have another option. The lower-earning spouse can claim benefits as early as age 62 to bring in income while the higher-earning spouse waits until 70. This "split strategy" can work even though both spouses waiting would produce larger checks later.
You also face taxes on up to 85% of your Social Security if your income exceeds certain thresholds. If you're still working when you claim, your paychecks could push you over that limit.
The timing decision depends on your health, total earnings, savings, living expenses, and spousal benefits. A financial advisor can help you work through these factors for your situation.