Should You Wait Until Age 70 to Collect Social Security?
Every year, up to 85% of your Social Security benefits are subject to taxation, depending on your household income. And if you make a significant amount of money each month, there’s a good chance the government will tax some of your Social Security.
To find out what, if any, portion of your Social Security is taxable, the government determines your combined income from your adjusted gross income, nontaxable interest (like from municipal bonds) and half of your Social Security benefits. If your combined income exceeds certain thresholds, your benefits will be taxed at a higher rate.
For 2026, if you’re a single filer, your benefits will not be taxed if your combined income is less than $25,000. If your combined income is between $25,000 and $34,000, 50% of your benefits will be taxed. If your combined income is more than $34,000, up to 85% of your benefits will be taxed. For married filing jointly, the combined income thresholds are less than $32,000, between $32,000 and $44,000 and more than $44,000.
If delaying benefits and getting a bigger Social Security check increases your combined income, it could push you into a threshold that’s taxed higher than others. Before you decide whether to delay collecting benefits, make sure you understand how the government calculates the taxable portion of Social Security payments and how it will affect you.
How a financial advisor can help you determine when to claim Social Security
“[The SSA] isn’t designed to meet with you on a one-on-one basis and it certainly isn’t going to meet with you every year as things change,” says Nustad.
A financial advisor can meet with you to get a better understanding of your financial situation and retirement goals. They can also plug specific information, like age, marital status and earnings, into software that can provide recommendations, run various scenarios and calculate your break-even point—the point at which your cumulative benefit amount from claiming Social Security at 70 equals the cumulative benefit amount from claiming at 62.
A financial advisor or wealth manager can also help you with the bigger picture. According to Beck, they can look at the various goals you have in retirement and help you prioritize those goals and put the moving parts together to make them achievable. These moving parts could include income withdrawal strategies, investment management, tax planning, estate planning and insurance needs.
If you’re worried you’re going to run out of money, a financial advisor who specializes in retirement can help you course correct and plan a better withdrawal strategy based on your available resources.
FAQ
How much more do you get by waiting until 70?
Depending on the year you were born, you can get a 24% to 29% increase in your benefits by waiting to withdraw from Social Security until age 70. For example, if you were born in 1960 or later, you’ll receive 124% of your full retirement benefit if you wait until age 70. If you were born in 1956, you’ll receive 129% of your full retirement benefits when you turn 70 this year.
What is the break-even age for delaying Social Security?
The Social Security break-even age is the age at which you will meet, then surpass your cumulative amount of benefits if you started receiving them at 62 versus waiting until age 70.
For example: If you were born in 1960, and your monthly benefit at full retirement age was $1,000, your break-even age would be about 80 years old. That means you will have earned the same amount of money—about $185,000—once you turn 80 regardless of whether you started collecting at 62 or 70. After your break-even age, you will earn more money from collecting at age 70 than age 62. In this case, delaying your benefits will be “worth it” mathematically if you live past age 80.
Can you work while delaying Social Security?
Yes, you can work while delaying Social Security. While this helps provide a stable income while you wait to collect, it takes time away from a retirement that you can enjoy while you’re still healthy and active.
You can also work while receiving Social Security benefits, but you will have some benefits temporarily withheld if you’re younger than your FRA and earning more than the annual limit of $24,480 in 2026.
Does delaying Social Security affect taxes?
Depending on your household income, up to 85% of your Social Security benefits could be taxed each year. You might also have to pay taxes on Social Security if you earn a significant amount of money each month.
By delaying benefits and getting a bigger Social Security check, you’ll increase your combined income, which could push you into a threshold that’s taxed higher than others.
What if I change my mind about collecting Social Security?
If you start collecting Social Security and decide you want to delay your benefits, you can turn the benefit off and then back on later. According to the SSA, you can suspend your benefits if you have reached your FRA but are not 70 yet. You can also withdraw your application one time within 12 months of your benefit approval.
“Most people think that when they make a decision on how to take the benefit, it’s one and done, it’s over,” says Nustad. “Even if you turn your benefit on at age 62, you are not necessarily stuck.” Nustad uses the example of someone with an initial Social Security benefit of $1,000 per month who starts to collect at 62. Because they begin collecting before their FRA, they only receive $700. They collect the $700 per month until their full retirement age (67), then turn their benefit off. For the next three years, their benefit grows by 8% each year from the baseline of $700. When they start collecting again at age 70, their new monthly benefit will be $868.