Her Advisor Said Wait Until 70. At 66, She Chose Time to Enjoy Social Security Over an 8%-a-Year Raise.

A 66-year-old woman, financially secure, chose to claim her Social Security benefits early instead of waiting until age 70 for a larger monthly payment. She acknowledged her advisor's advice to delay, but she prioritized the money needed for her present needs, while her knees still function well and she enjoys a comfortable lifestyle.

The delay in claiming Social Security benefits typically results in an 8% annual increase, but this doesn't start until full retirement age, which is 67 for someone born in 1960 or later. Claiming at 66 means accepting a slight reduction in monthly payments for one year. The full benefit amount at age 67 would be $2,400 per month, increasing to $2,976 at age 70.

Waiting until 70 would result in a monthly payment of approximately $2,976 before cost-of-living adjustments. The delayed benefit would catch up around age 82. However, the decision to claim early or later extends beyond the numbers, as it also impacts lifestyle choices during the active years and the financial security for future years, especially if the individual is married.

The woman's advisor suggested that claiming early could leave more assets for her and her potential spouse, while delaying could provide a larger monthly income for the spouse after her death. The decision ultimately depends on her health, spending plans, and investment portfolio, and she could consider a mix of claiming now and drawing from her savings until age 70.