Why Delaying Social Security Until 70 Could Mean $806 More Monthly—Yet Most Retirees Won't Do It

The math is compelling: A worker claiming Social Security at age 70 receives roughly 77% more in monthly benefits compared to taking it at age 62. Yet according to 2024 data, only 10% of newly retired workers actually make this choice. More than 30% rush to claim as soon as they’re eligible. The gap between optimal strategy and actual behavior reveals a disconnect worth understanding.

The Numbers Tell a Clear Story

The Social Security Administration tracks benefit amounts across all claiming ages. Here’s what the December 2024 data shows:

Average Retired-Worker Monthly Benefits:

That $806 monthly difference between age 62 and 70 compounds significantly over time. For someone living into their 80s, the cumulative advantage of waiting becomes substantial.

How the 62/70 Percentage Gap Works

The percentage increase depends on your birth year and full retirement age (FRA). For workers born in 1960 or later, the mechanics are straightforward:

• Claiming at 62: You receive 70% of your Primary Insurance Amount (PIA)
• Claiming at 70: You receive 124% of your PIA

That 62/70 percentage difference—54 percentage points—represents delayed retirement credits that accumulate for each year you wait past full retirement age (67 for those born after 1960).

Here’s how this plays out across different birth cohorts:

Why Most People Claim Early Despite the Evidence

A 2022 National Bureau of Economic Research study found that over 90% of workers ages 45 to 62 would maximize lifetime income by waiting until 70. Yet behavior doesn’t match the research. Three factors explain the gap:

Financial pressure: Workers facing immediate cash needs can’t afford to wait. If you need income now, the mathematics of future payouts matter less than today’s bills.

Longevity uncertainty: The break-even point typically occurs around age 80. Workers unsure they’ll reach that milestone rationally discount the value of delayed benefits.

Decision complexity: Most retirees don’t run detailed scenarios. They simply take benefits when available rather than optimize for lifetime value.

How Social Security Benefits Actually Get Calculated

The SSA uses a two-step process:

Step 1 - Determine your baseline benefit: Your Primary Insurance Amount (PIA) is calculated using a formula applied to your inflation-adjusted lifetime earnings. Your full retirement age (67 if you were born in 1960 or later) determines what percentage of your PIA you’ll receive.

Step 2 - Apply age adjustments: The SSA then adjusts your PIA based on when you claim. Claim before FRA and you get less than 100%. Claim after FRA and you get more. There’s no benefit to waiting past 70.

When Early Claiming Makes Sense

Claiming at 62 isn’t always wrong. Consider it if:

• You’re experiencing financial hardship with no other income options
• Health conditions suggest you may not reach age 80
• Your family history indicates shorter life expectancy
• You want to enjoy retirement income while you’re young enough to use it

For personalized guidance, consult a financial advisor or use Social Security optimization tools to model different scenarios and see which aligns with your specific situation.

The Bottom Line

The 62/70 percentage math is clear: Waiting until 70 delivers substantially higher monthly payments. But waiting works only if you can afford to. The real decision isn’t about which age is objectively “best”—it’s about which choice fits your financial reality, health outlook, and life priorities.