When to Apply for Social Security Benefits at Age 70?

Social Security benefits are an important part of retirement planning. Understanding when and how to claim these benefits is an important financial decision. Delaying Social Security payments until age 70 is a strategy that can increase your monthly benefit. This approach is beneficial for those who can defer receiving income, allowing their benefits to grow.

Maximizing Your Benefits Through Delayed Claiming

Claiming Social Security benefits at your Full Retirement Age (FRA) allows you to receive 100% of the benefit calculated from your earnings record. Your FRA is determined by your birth year, gradually increasing from age 66 for those born in 1943-1954, to age 67 for individuals born in 1960 or later. Understanding your specific FRA is important for understanding claiming options.

Delaying Social Security benefits beyond your Full Retirement Age can lead to an increase in your monthly payments. This increase occurs through Delayed Retirement Credits (DRCs), which are added for each month you postpone benefits past your FRA, until age 70. These credits accrue at a rate that results in an annual increase of approximately 8% for those born in 1943 or later. These credits compound your benefit, leading to a higher monthly payment.

For example, if your Full Retirement Age is 67 and you delay claiming until age 70, you accumulate three years of Delayed Retirement Credits. This delay results in your monthly benefit being 124% of your Full Retirement Age benefit, representing a 24% increase. This enhancement is permanent and applies to all future monthly payments.

Once you reach age 70, no further Delayed Retirement Credits are applied to your benefit. Age 70 is considered the optimal age to claim benefits for those seeking to maximize their individual monthly payout. This strategy appeals to individuals who anticipate a long lifespan or desire greater financial stability in retirement.

The decision to delay claiming benefits until age 70 is personal, influenced by your financial situation, health, and other retirement income. For those who can manage finances without Social Security income during this period, the increased monthly benefit provides a valuable inflation-adjusted income stream with enhanced purchasing power.

Pre-Application Considerations and Preparations

Before initiating your Social Security application, several important considerations and steps should be addressed. Coordinate your Medicare enrollment, which typically begins at age 65. Even if delaying Social Security until age 70, enroll in Medicare Part A and Part B when first eligible at age 65.

Failing to enroll in Medicare Part B when first eligible, unless you have creditable employer-sponsored health coverage, can result in permanent late enrollment penalties. These penalties involve an increase in your monthly premium for as long as you have Part B.

Consider spousal and survivor benefits. If you are married, delaying your own Social Security benefit until age 70 can significantly impact potential spousal or survivor benefits for your spouse. A spouse may claim a spousal benefit based on your earnings record once you file, even while you delay your own primary benefit. This influences combined household benefits.

Delaying your own benefit also maximizes the potential survivor benefit for your spouse should you pass away first. Survivor benefits are based on the deceased worker’s benefit. Maximizing your own benefit through Delayed Retirement Credits also maximizes the potential income for your surviving spouse. Couples should discuss claiming strategies to optimize combined household benefits.

Gather necessary information and documents before applying. You will need your Social Security card, your birth certificate or other proof of birth, and proof of U.S. citizenship or lawful alien status if you were not born in the U.S.

Additional documents may include W-2 forms or self-employment tax returns for the previous year to verify your earnings. You will also need your bank account information, including your bank’s routing number and your account number, for direct deposit of your benefits.

The Application Process

Once you have considered your options and gathered documentation, apply for Social Security benefits at age 70. It is recommended to apply approximately three to four months before your 70th birthday. This timeframe allows the Social Security Administration time to process your application and ensure benefits begin in the month you turn 70. Applying too early or too late may delay your first payment or cause benefits to start earlier than intended.

You can submit your Social Security application through several methods. The most common method is applying online through the Social Security Administration’s official website. You will need to create a my Social Security account if you do not already have one to access the online application portal.

The online application guides you through various sections, requesting personal details, earnings history, and banking information for direct deposit. Review each section carefully before submission to ensure accuracy.

For those who prefer not to apply online, applications can also be submitted by phone or in person at a local Social Security office. To apply by phone, call the Social Security Administration’s national toll-free number during business hours. A representative will guide you through the application questions and may mail forms or request additional documentation.

If you choose to apply in person, schedule an appointment beforehand to minimize wait times. When visiting an office, bring all your prepared documents and information.

After submitting your application, the Social Security Administration will process it within a few weeks to a few months. You will receive a letter informing you of their decision. If approved, the letter will specify your monthly benefit amount and the date your payments will begin. Benefits are almost always paid via direct deposit into your designated bank account.