Why Delaying Social Security Isn’t Always the Best Move

For years, one piece of Social Security advice has been repeated so often that many retirees treat it as a rule: delay your benefits as long as possible. On the surface, the logic is solid. Your benefit grows the longer you wait, and those increases are guaranteed by the government. But in real retirement planning, what sounds optimal on paper isn’t always optimal in practice.

I’ve found that the decision of when to claim Social Security is less about maximizing a check and more about coordinating income, risk, health, and lifestyle. Delaying can be powerful — but it’s not universally the right answer.

Let’s look at where the nuance lives.

How Delaying Actually Works
Social Security benefits grow for each year you delay past your full retirement age (FRA), up to age 70. The increase is roughly 8 percent per year in delayed retirement credits. That means someone whose full retirement age benefit is $2,500 per month could see it grow to about $3,300–$3,400 per month by age 70.

That’s a meaningful bump. It also adjusts for inflation over time, which makes it even more attractive on paper.

But there’s a tradeoff that often gets overlooked: you don’t receive those payments during the delay years. In other words, you’re spending your own money while you wait for a larger future benefit.

The Hidden Cost of Waiting
To delay Social Security, retirees typically fund their lifestyle using portfolio withdrawals, pensions, or other savings. That creates what I call a “bridge period” — the years between retirement and when benefits begin.

If markets are strong and your portfolio is healthy, this strategy can work well. But if markets are volatile or down, those withdrawals can create sequence-of-returns risk. You may be selling investments at depressed prices just to postpone claiming.

In some cases, the portfolio damage from funding the delay can offset part of the benefit increase you were aiming for in the first place.

This is why Social Security timing should never be decided in isolation. It must be coordinated with your broader income plan.

Health and Longevity Matter
The math behind delaying often assumes you’ll live well into your 80s or 90s. For many people, that’s a reasonable assumption. But not everyone has the same health outlook or family longevity history.

If someone has medical concerns or a shorter life expectancy, claiming earlier can sometimes produce more lifetime value. Social Security is, at its core, longevity insurance — it pays off the most if you live a long time.

The key is being realistic, not pessimistic, about your personal situation.

Cash Flow and Lifestyle Goals
Retirement isn’t just a spreadsheet exercise. It’s a life phase with goals, priorities, and timing preferences.

Some retirees want more income earlier to travel, help family, or enjoy active years while health is strong. Others prioritize maximizing guaranteed income later for peace of mind.

Neither approach is wrong. But the decision should reflect how you actually want to live, not just what produces the largest theoretical lifetime total.

I often remind people: a larger benefit at 70 doesn’t help fund meaningful experiences at 62 or 65 if those years matter most to you.

Taxes and Coordination Also Play a Role
Social Security interacts with taxes, Medicare premiums, and required minimum distributions (RMDs). Delaying benefits can create planning opportunities, such as doing Roth conversions in lower-income years before benefits begin.

On the flip side, stacking large Social Security checks on top of RMDs later can increase taxable income and Medicare IRMAA surcharges. Good planning looks at the full picture, not just the benefit size.

When Delaying Often Makes Sense
Delaying tends to be most effective when:
• You expect a long lifespan
• You have sufficient assets to fund the delay comfortably
• You want stronger guaranteed income later in life
• You’re planning for a surviving spouse who may rely on the higher benefit

When It May Not
Delaying may be less attractive when:
• Health or longevity is uncertain
• Portfolio withdrawals would strain your plan
• You retire early and need income
• Lifestyle goals favor earlier spending

The Real Takeaway
The best Social Security strategy isn’t about chasing the biggest check. It’s about fitting Social Security into a coordinated retirement income plan.

For some retirees, delaying to 70 is absolutely the right move. For others, claiming earlier creates more flexibility and less financial stress. The optimal choice depends on your health, assets, taxes, and goals.

Social Security is too important to treat as a rule-of-thumb decision. A personalized strategy almost always beats a generic one.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.