Why You Should Claim Social Security at 70 While Working

So, you’ve made it to 70 and you’re still working and you’re still punching the clock? Congratulations on missing the retirement memo! Now you’re faced with the thrilling decision about whether to claim your Social Security benefits. What a delightful conundrum after decades of mandatory contributions to the Social Security system.

Fortunately, the government in its infinite wisdom doesn’t force you to take your money back. How generous! You can continue working AND delay claiming the retirement benefits you’ve been funding your entire career. Because who wouldn’t want to postpone receiving money they’re entitled to?

Let’s explore your riveting Social Security options, shall we?

Why Age 70 Is Optimal for Social Security

You could have claimed Social Security at 62, but that would have meant actually enjoying your money while you’re still spry enough to use it. Perish the thought! Instead, waiting until your full retirement age (66-67, depending on when you were born) gets you 100% of your benefit.

But wait, there’s more! Each year you delay past full retirement age until 70, your Social Security benefit increases by 8%. It’s almost as if they’re paying you interest on money that was already yours to begin with. Brilliant!

Once you hit 70, though, the party’s over. The Social Security Administration stops adding those delayed retirement credits, presumably because they figure even the most stubborn workaholics should start collecting by now. If you haven’t claimed by 70, you might as well start, unless you enjoy donating money back to the government.

Oh, and if you’ve already passed 70 without filing? You can get up to six months of retroactive benefits. How magnanimous of them to give you a portion of what you’ve missed while they keep the rest! Delay any longer and you’re essentially making a charitable contribution to the Treasury Department. How patriotic of you!

Maximizing Social Security Benefits and Income

Here’s a refreshing twist: once you’re past full retirement age, you can earn as much as you want without affecting your Social Security benefits. Before that age, earn too much and they’ll reduce your benefits—because heaven forbid you try to work AND collect what you’re owed simultaneously.

Your claiming decision depends on your financial situation:

• If you’re swimming in cash with millions saved, perhaps you enjoy the thrill of leaving your benefits unclaimed
• If Social Security will be your primary income source in retirement, maximize your monthly check
• If you’re still working at 70, you can contribute to retirement accounts while collecting maximum benefits

Health is another factor. If you’re fit as a fiddle, those higher Social Security benefits might serve you well during a long retirement. If not, well… let’s just say the Social Security Administration has factored mortality tables into their calculations, and they’re not exactly betting against themselves.

Seek Out Professional Help

Social Security rules are about as straightforward as quantum physics. Spousal benefits, survivor benefits, tax implications—it’s almost like they designed it to be incomprehensible!

This is where financial professionals come in. For a modest fee, they’ll decipher the Byzantine regulations that govern the money you’ve already earned. What a bargain!

They might suggest:

• Using your Social Security benefits to pay down debt
• Investing in low-risk assets
• Strategies for minimizing taxes on your benefits
• Coordinating Social Security with Medicare enrollment

Or perhaps they’ll help address the emotional side of retirement planning—because nothing says “golden years” like anxiety about running out of money.

Key Takeaway

I’m not a financial planner, but here’s a revolutionary idea: if you’re 70 and still working, maybe consider claiming the Social Security benefits you’ve been funding your entire working life. Shocking advice, I know!

By filing for Social Security at 70, you lock in the highest possible benefit. What a novel concept—maximizing the return on your forced retirement contributions!

For personalized advice, consult a financial professional who can tailor recommendations to your unique situation. Or visit ssa.gov to navigate their user-friendly website, which was apparently designed during the dial-up internet era. Happy claiming!