Once you turn 62, you can technically file for Social Security at any age you want. However, you'll generally hear that 70 is the latest age at which to sign up for Social Security.
It's not that you'll be barred from filing a claim if you do so at 71 or 72. Rather, there's no financial incentive to delay your Social Security filing beyond the age of 70.
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You're entitled to your complete Social Security benefit, based on your personal earnings history, at full retirement age (FRA). That age is 67 if you were born in 1960 or later.
Filing for benefits prior to FRA will shrink them in the process, generally on a permanent basis. On the other hand, delaying your Social Security filing past FRA will result in a boosted monthly benefit for life.
You can only accrue delayed retirement credits that boost your Social Security benefits up until the age of 70, though. So that's why there's no reason to wait beyond that point.
You may be planning to claim Social Security at 70 so you can lock in the highest monthly benefit you're eligible for. That's a good idea in theory, but whether you're able to pull it off is a different story.
When the best-laid plans don't work out so well
Claiming Social Security at age 70 could mean having to work longer than most of your peers. But you may be willing to hold down a job for a few extra years to score a higher monthly benefit for the entirety of your retirement. Still, just because you're willing to make that effort doesn't mean you'll be able to.
You never know when health issues might impact your ability to work. And those health issues don't need to be yours. It may be that by the time your late 60s arrive, your health is fine, but the health of your spouse has declined. If you're forced into a caregiving role, you may not be able to hold down a job. And you might have to claim Social Security earlier than age 70 because of that.
Similarly, your company might fold when you're 65 years old. And even if you're highly skilled, let's face it -- it can be tough to get hired when you're at an age that's perceived to be on the cusp of retirement.
Age discrimination is very much illegal. But it's an issue you might face if you find yourself out of work later in life. In that situation, you may not even be able to wait until FRA to claim Social Security -- let alone age 70.
Don't wait to start saving
There's nothing wrong with deciding that you'd like to claim Social Security at age 70. But don't let that be a reason for you to save less for retirement during your career.
If everything goes smoothly, then sure, you may end up with a boosted monthly benefit, which will allow you to get away with having a smaller nest egg. But because you're not guaranteed you'll be able to claim Social Security at age 70, you shouldn't let your savings fall by the wayside. You also shouldn't look to a larger benefit as a replacement for the higher IRA or 401(k) contributions you should be making.
Some people can pull off a Social Security filing at age 70 without any issues. But you can't assume you're going to be one of them.
