Social Security at 62, 67, or 70? A HNW Decision Framework

Social Security at 62, 67, or 70? A HNW Decision Framework

Balancing lifetime income, portfolio withdrawals, and survivor protection

September 10, 2026

Having enough money to retire does not make the Social Security decision unimportant. It changes the question. A household with substantial investments can often choose whether to spend more from its portfolio now in exchange for a larger monthly benefit later. I would evaluate that exchange alongside health, the surviving spouse's income needs, and the assets available to fund the wait.

There is no single claiming age that is best for every high-net-worth household. The useful objective is a durable retirement plan, including years when one spouse is living alone or neither spouse wants to manage complicated financial decisions.

Start with the benefit you are actually choosing

For people born in 1960 or later, SSA sets full retirement age at 67. Claiming a retirement benefit at 62 reduces it to 70% of the full-retirement-age amount. Waiting from 67 to 70 adds delayed retirement credits equal to 8% of the full benefit for each year of delay, producing 124% at 70. These comparisons assume the same underlying earnings record. Your birth date and actual claiming month matter.^1,2

The 8% figure describes an increase in the monthly benefit formula. It is not a return credited to an investment account that you can withdraw or leave to children. Waiting also means giving up payments in the intervening years. Social Security receives cost-of-living adjustments, but the purpose of delaying is to increase the income available if you live long enough to need it.^2,6

Put the income difference in dollars

Assume a worker has a $3,000 monthly benefit at full retirement age, is subject to the age-67 schedule, and has no further earnings changes. The comparable gross monthly benefits are $2,100 at 62, $3,000 at 67, and $3,720 at 70. Figure 1 shows that waiting to 70 increases monthly income by $1,620 compared with claiming at 62. These are hypothetical amounts, not a forecast or an estimate from an individual's earnings record.

Waiting from 67 to 70 forgoes $108,000 of gross benefits in this simplified example. The additional $720 per month takes 150 months to recover that amount, putting the undiscounted crossover at approximately age 82½. The calculation deliberately excludes taxes, cost-of-living changes, investment returns, payment-calendar details, and survivor benefits. It is a starting point for discussion, not a recommended claiming age.

That comparison changes when the bridge must be funded from investments. I would identify the accounts that will supply the missing cash, the taxes those withdrawals may create, and what happens if markets fall during the waiting period. A plan that requires selling volatile assets at an inconvenient time deserves a different assessment from one with sufficient cash and short-duration reserves already set aside.

Give the surviving spouse a separate analysis

Delayed retirement credits can increase benefits paid to an eligible surviving spouse. That makes the higher earner's decision especially consequential when the other spouse could live substantially longer. The benefit of waiting may extend beyond the higher earner's lifetime.⁴

I would compare each spouse's expected income after either death, then compare that income with a realistic survivor spending plan. Household expenses rarely divide neatly in half. Housing, maintenance, and many fixed expenses may remain. A higher dependable income floor can therefore have value even when a household has ample investments.

Know when waiting is a poor fit

Earlier claiming can be reasonable when serious health concerns shorten the expected benefit period, available assets are illiquid, or the household needs the income to avoid financial strain. A strong preference for near-term spending can also be legitimate if the longer-term plan remains sound. The decision should reflect those priorities explicitly.

Continued employment needs a separate check. In 2026, someone below full retirement age all year generally has $1 withheld for each $2 of earnings above $24,480. In the year full retirement age is reached, the rule becomes $1 for each $3 above $65,160, counting earnings before the full-retirement-age month. Beginning that month, earnings no longer reduce benefits. Wages and net self-employment income count; investment income and pensions do not. SSA later adjusts benefits for months affected by earnings-test withholding.³

Taxes are another reason to coordinate the choice with the withdrawal plan: other household income helps determine how much Social Security enters taxable income. Ask the CPA to compare the years before claiming with the years after claiming, rather than evaluating one tax return in isolation.⁵ Medicare enrollment also needs its own timetable even when Social Security is delayed; waiting on one does not automatically justify waiting on the other.²

Closing

Before submitting an application, obtain benefit estimates that use the same future-earnings assumptions, identify the cash that funds any delay, and review both spouses' income under a long-life scenario. Our team can coordinate that analysis with your CPA and verify the benefit mechanics with SSA.

For a healthy household with adequate liquid reserves, delaying the higher benefit deserves serious consideration. For another household, earlier income may solve a more pressing problem. I want the chosen age to follow from the plan, with the reasoning documented while the tradeoffs are still clear.

All my best,

Brandon VanLandingham, CFA, CMT, CFP
Founder / CIO

Citations

1. SSA, Born in 1960 or later. https://www.ssa.gov/benefits/retirement/planner/1960.html (accessed September 10, 2026).
2. SSA, Delayed Retirement Credits. https://www.ssa.gov/benefits/retirement/planner/delayret.html (accessed September 10, 2026).
3. SSA, Receiving Benefits While Working. https://www.ssa.gov/benefits/retirement/planner/whileworking.html (accessed September 10, 2026).
4. SSA, 20 CFR 404.313. https://www.ssa.gov/OP_Home/cfr20/404/404-0313.htm (accessed September 10, 2026).
5. IRS, Topic 423. https://www.irs.gov/taxtopics/tc423 (accessed September 10, 2026).
6. SSA, Cost-of-Living Adjustment Information. https://www.ssa.gov/cola/ (accessed September 10, 2026).

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