Delaying Social Security benefits until age 70 may seem like the obvious choice for maximizing retirement income, but experts warn this strategy might not be the best option for everyone. Financial planners recommend considering individual circumstances, investment returns, and lifestyle factors before deciding when to claim benefits.

Academics and economists advocating for delayed benefits may overlook the reality that most retirees don’t solely invest in ultra-safe assets. By assuming low returns, they miss the opportunity cost of delaying benefits. Different assumptions and a higher discount rate could change the math and make earlier retirement a better option for some.

Factors like health, mobility, and average life expectancy should also influence the decision of when to start claiming Social Security benefits. While a higher discount rate can help capture financial risks, it’s important to consider lifestyle factors that could affect the value of benefits at different ages.

The average retirement age in the U.S. is 62, and only 10% of retirees wait until age 70 to claim benefits. Instead of blindly following common advice to delay benefits, individuals should assess their unique situation, use accurate assumptions, and potentially work with a financial planner to optimize their retirement plan for their desired lifestyle. 1. A study suggests that delaying Social Security retirement benefits may be a mistake, as it can lead to higher discount rates and impact retirement planning. The MassMutual Retirement Happiness Study sheds light on the importance of claiming behavior and trends.

2. Research from the Bipartisan Policy Center highlights the significance of Social Security claiming age and its impact on retirement. Experts caution against delaying benefits, citing potential financial implications and the need for careful planning.

3. The Journal of Financial Planning and The Wall Street Journal both discuss the potential drawbacks of delaying Social Security retirement benefits. Experts offer insights on how this decision can affect overall retirement planning and financial security.

4. It may be beneficial for individuals to carefully consider when to claim Social Security retirement benefits, as research suggests that delaying may not always be the best strategy. Experts emphasize the importance of weighing all factors before making this decision.

Read more at Yahoo Finance: You probably shouldn’t wait till 70 to claim Social Security. Here’s math to open your eyes (but nobody likes to show)