Planning to Delay Social Security? Here's Why You May Not Be Able To.

Many older Americans today rely on Social Security to cover their retirement expenses. And chances are, those benefits will be an important source of income for you once your career ends.

That’s why it’s important to claim Social Security strategically. And you may be planning to delay your claim as long as possible to boost your monthly benefits.

You’re eligible for your Social Security benefits without a reduction at full retirement age, which is 67 if you were born in 1960 or later. But for each year you delay your claim past that point, your benefits get an 8% boost, up until age 70.

Filing for Social Security at 70 may be part of your retirement income strategy. And it is a good way to take the pressure off your savings.

But just because you’d like to claim Social Security at 70 doesn’t mean doing so will work out. So, it’s important to have a backup option.

Why your Social Security plans could fall through

You might think claiming Social Security at 70 is a pretty easy thing to pull off. Just work till 70, quit, and take your benefits.

But it’s not so simple. It’s not a given that you’ll be able to work until age 70. And unless you have a lot of savings to support yourself with, you may be unable to wait on Social Security until 70 in the absence of a job.

And unfortunately, a lot could go wrong with your job between now and your 70th birthday. You could find yourself downsized out of your role. You could find yourself pushed out of your company due to age discrimination, which is, of course, illegal, but also hard to prove.

Or you may have to stop working before turning 70 for different reasons. If your health takes a turn for the worse, continuing to work may be difficult. If you need to care for a spouse with health problems, that might force you to stop working, too.

For these reasons, it’s best not to bank on being able to claim Social Security at 70. You can try to do that. But it may not work out.

Set yourself up with other income

Because it’s not a given that you’ll be able to claim Social Security at 70, one of the best things you can do in case your plans don’t pan out is build savings. That way, if your monthly benefits end up being smaller in retirement, you can supplement them by pulling from your individual retirement account (IRA) or 401(k).

Let’s say you’re 45 years old and have only $40,000 saved for retirement. If you spend the next 20 years contributing $500 a month to an IRA or 401(k) that gives you an 8% annual return, which is a bit below the stock market’s average, you could end up with $461,000 by age 65.

If, at that point, you’re forced to stop working for one of the reasons above (or a completely different one), you’ll have a decent-sized nest egg to tap. And if you aren’t able to delay Social Security until 70 for the largest possible monthly checks you can get, that may be something you can pretty easily recover from.