Social Security can go a long way in retirement, and it’s even responsible for keeping around 16.5 million adults age 65 and older above the poverty line, according to 2022 data from the Center on Budget and Policy Priorities.

Even if you do have plenty of savings stashed away, it doesn’t hurt to have some extra cushion from Social Security. Fortunately, there’s one straightforward way to boost your benefits, and a comprehensive study found that it could increase the average retiree’s lifetime income by nearly $272,000.

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Supercharging your Social Security

There are plenty of options for earning more from Social Security. You could increase your income, for example, since all wages up to the $176,100 annual earnings limit will count toward higher payments. The length of your career also affects your benefit, so working a few more years could help, too.

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But perhaps the most straightforward way to snag larger checks is to delay claiming benefits. The longer you wait past age 62 to file, the more you’ll receive each month. Claiming at age 70 will earn you the highest possible payments based on your work history, maxing out your benefit.

Research also suggests that for the vast majority of people, filing at age 70 is the ideal choice financially. A 2022 study from the National Bureau of Economic Research looked at how claiming age affects lifetime income — as well as how much retirees are leaving on the table by claiming at the less-than-ideal age.

They found that 91.6% of workers could optimize their Social Security by filing at age 70, while a staggering 99.4% could optimize their benefits by waiting until at least age 65 to begin claiming.

Furthermore, across all age groups, the median amount foregone by filing at the suboptimal age is $158,069. Those aged 45 to 54 stand to miss out on even more, with the median household potentially foregoing $271,790 over a lifetime by eventually filing at the less-than-optimal age.

When it pays to file early

It’s important to note that this study only looked into the financial advantages of filing at a particular age. While finances are a crucial part of this decision, it’s also wise to look at the big picture when deciding what age to take Social Security.

An equally important factor to consider is your overall goal for retirement. If your biggest priority is maximizing your Social Security, waiting until age 70 to file is likely your best bet. But if your primary goal is to spend as much time as possible in retirement, claiming early can sometimes pay off.

You can retire early and then delay claiming Social Security, but that’s often challenging unless you have an extraordinary amount in savings. Most people will need to rely on their benefits to some degree to make ends meet, so filing earlier can make early retirement more feasible.

Finally, though it’s not the most pleasant topic to think about, your life expectancy can also play a role in this decision. If you have reason to believe you may not live into your 80s or beyond, it may not make much sense to delay benefits until age 70. Claiming early will reduce your monthly payments, but you could potentially collect more over a lifetime if you live a shorter-than-average lifespan.

Making the decision

The age you take Social Security is an incredibly important decision, but it’s not as clear-cut as it may seem. By weighing your priorities and overall goals for retirement, you can decide on the best choice for your unique situation.

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