Retirement Social Security

Claiming Social Security Before 70 Could Cost Some Retirees Over $180,000

More than 90% of workers would gain by waiting, but few actually do.

By David Maina, CPA , Edited by Laura Hohenstein

Updated June 3, 2026

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Most people file for Social Security years before they probably should, and the cost of that decision is bigger than almost anyone expects.

A working paper from the National Bureau of Economic Research (NBER) found that more than 90% of workers between 45 and 62 would end up financially better off waiting until 70 to claim.

For the typical worker who files early, the researchers put the lifetime cost at around $182,370 in today's dollars. Here is what the research found and what it could mean for your own senior benefits.

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What the research found

The NBER paper used the Federal Reserve's Survey of Consumer Finances and a detailed model of household budgets to simulate what claiming at different ages would mean for lifetime spending.

The finding was that most middle-aged Americans would come out ahead by waiting, and the majority would do best by holding off until 70.

That $182,370 figure is measured in lifetime discretionary spending, which means it accounts for taxes, Medicare premiums, and the effects of other government programs, not just the gross benefit.

Even after all of that, the typical worker would see lifetime spending rise about 10.4% by delaying. A quarter of households would gain more than 17%, and one in ten would see their spending power climb by more than 26%.

Lower-income workers tend to benefit the most from waiting. The poorest fifth of workers in the study saw a median lifetime spending increase of 15.9%, higher than the overall average.

Since Social Security replaces a larger share of income for lower earners, a bigger monthly check can go further for people with less savings to rely on.

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Why the gap between 62 and 70 is so large

For each year you delay past full retirement age (FRA), up to 70, your monthly benefit grows by 8%. Claiming early does the reverse, permanently lowering your benefit for each year before full retirement age.

Take someone whose full benefit at 67 would be $2,000 a month. Filing at 62 would cut that to about $1,400. Waiting until 70 would raise it to roughly $2,480. That's a difference of more than $1,000 every month, locked in for life and adjusted for inflation each year afterward.

If that retiree lives into their mid-80s, the higher benefit from waiting can add up to well over $100,000 in additional lifetime income, even after accounting for the years between 62 and 70 when no checks were coming in.

And since the annual cost-of-living adjustment (COLA) applies to whatever benefit you started with, that larger starting benefit continues to be larger for as long as you collect.

When waiting makes sense

The case for waiting is strongest if you expect to live a long time. A 62-year-old man today will live about 21 more years on average, and a woman about 24 more, according to the Census Bureau. If you're in good health with a family history of longevity, the odds usually favor waiting.

Having other income sources can also make it easier to delay. If you have a pension, rental income, part-time work, or savings to live on in your early 60s, you can cover your expenses without filing right away, which also lets your own savings keep growing.

Couples also have an extra reason to coordinate. This is because when the higher earner waits to claim, it raises their own check and locks in a larger survivor benefit for their spouse later.

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When claiming early is the better call

If you're in poor health or have a family history suggesting a shorter life, collecting sooner may put more total money in your pocket.

Roughly half of workers over 50 have physically demanding jobs, and many can't keep working as long as a wait-until-70 strategy would require. If you're the sole earner supporting a household, caring for a sick spouse, or short on savings, the income at 62 may simply be necessary.

The main thing to avoid is filing early by default, without really thinking it through. That is the choice most likely to cost you.

How to find your own break-even age

Your break-even age is the point where the larger checks from waiting overtake the smaller checks you'd have collected by claiming early. Here is a quick way to estimate it.

Say your full benefit at 67 would be about $1,800 a month. Waiting from 62 to 67 means giving up roughly $75,600 in payments you could have collected during those five years. In exchange, your monthly check would be about $540 higher from 67 onward.

Divide the amount you gave up by the monthly increase, and it would take about 11 years and 8 months to break even, putting you a little under age 79.

Where to run the numbers

The SSA's website at ssa.gov lets you log in and see your projected benefit at every claiming age based on your actual earnings record. From there, you can compare the numbers against your health, your other income, and how long you expect to collect.

For anything more complicated, like coordinating benefits as a couple or weighing the tax effects, a fee-only financial planner can run the full picture for you.

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Bottom line

Claiming Social Security is one of the biggest financial decisions in retirement, and it is often made without much thought. For most people, the option that feels safest, taking the money as soon as it's available, tends to leave the most on the table.

If you're in good health with other income to lean on, even waiting a few years past 62 can permanently raise the income you'll depend on for the rest of your life. Lining that decision up with your retirement goals, rather than filing the moment you are eligible, can make a real difference in what the years ahead look like.

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