In 2018, personal finance expert Suze Orman, writing for AARP, had a message for anyone approaching retirement. Stop thinking of 65 as your finish line. In her view, 70 is the new 65, particularly when it comes to Social Security. This advice still holds true.
Orman points out that you receive a guaranteed 8% annual increase in your monthly benefit for every year you delay claiming between your full retirement age and 70. Compare that to the roughly 2% you might squeeze out of a savings account right now, and the math starts looking pretty compelling.
The cost of claiming early
Claiming as early as 62 cuts your monthly benefit by about 25% to 30% because you’re taking it before your full retirement age, which is 66 or 67 for most people. That reduction is permanent. Waiting past full retirement age raises your benefit each year until age 70, when the monthly check reaches its maximum.
For married couples, the stakes get even higher. If you’re the higher earner and you claim early, then die before your spouse, you’ve also reduced their survivors’ benefit for the rest of their life.
But the real danger may not be dying young before you collect. It is living longer than your savings can support you. The first 10 or 15 years of retirement might feel manageable, but the 10 or 15 years beyond that could get rough.
By waiting until 70, your monthly payout could be more than 75% higher than your age-62 benefit. That is serious money.
Bridge the gap with smart strategies
Waiting until 70 may create a practical problem. How do you cover living expenses in your 60s if you’re not collecting Social Security?
Orman suggests tapping your 401(k) or IRA savings during this bridge period, but she adds a critical caveat. You must keep those withdrawals as low as possible. The longer that money stays invested, the more years it has to grow, and the fewer years it needs to support you later.
This is where extending your career becomes part of the equation. Data suggests that every three to six months you delay taking Social Security, you could be equivalent to having saved an additional percentage point in your retirement accounts over 30 years. That is a powerful trade-off.
Rethinking work in your 60s
Staying employed longer doesn’t necessarily mean grinding away at a demanding job you’ve outgrown. Orman encourages people to think creatively about this decade.
If you love your current role, consider what skills might keep you valuable through your 60s. If you’re burned out, explore transitioning to something less intense that still covers most of your living expenses.
Even part-time work can make a real difference. If your age-62 Social Security benefit would be around $1,200 monthly, finding a gig that pays roughly that amount lets you leave your benefit untouched while it grows. Lots of companies let you earn money for testing apps, playing games and taking surveys,. With FreeCash, you could earn $1,370 a month while you’re watching TV.
The options are more varied than you might think. Rideshare driving, dog walking, or shifting to part-time hours at your current employer could all help bridge the gap without the stress of full-time commitment.
When this advice matters most
Orman is particularly insistent about this strategy for two groups. She speaks specifically to single people and the higher earners in married couples. These are the situations where delaying delivers the biggest payoff, both for your own retirement security and potentially for a surviving spouse.
If health concerns make waiting until 70 unrealistic, she still recommends holding out on Social Security until full retirement age if you can. The decision is deeply personal. It is shaped by your health, savings, family situation, and tolerance for financial uncertainty.
But Orman’s core point is worth consideration. In an era when many of us could live well into our 80s and beyond, optimizing for longevity risk might matter more than getting your hands on money as soon as possible. You have to consider the specific danger of outliving your savings.
What could a check that is more than 75% higher actually mean for your quality of life at 85, especially when healthcare costs tend to climb? That question alone is worth running the math.
None of us can predict the future, but Life Line Screening helps uncover hidden health risks early. A better understanding of your long-term health outlook can make it easier to decide when claiming Social Security makes the most sense for you.
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