Surprise, This Is The Best Age to Claim Social Security

"Social Security is one of your best income sources as a senior because you collect it for life, and there are inflation adjustments built in to help you maintain your buying power. Chances are good you're going to rely on Social Security to cover at least some of your bills, and potentially to provide a good amount of your retirement income, depending on how much you've saved."

"Although you can start benefits when you're just 62 years old, the reality is that a delayed Social Security claim is actually going to be the better bet for the majority of seniors. In fact, you don't just want to delay until your full retirement age, which is 67 for anyone born in 1960 or later. Research has clearly shown that the best age for claiming Social Security is actually 70."

"That's based on a report from the National Bureau of Economic Research, which found that waiting until 70 is the right choice for over 90% of Americans. Of course, this means leaving eight full years of money on the table, so it may seem hard to believe this is the right move. The data is clear, though, with the NBER report showing the median loss in spending power totals $182,370 among those who claim earlier than the optimum age."

Social Security provides lifetime income with inflation adjustments to help maintain buying power. Many retirees will rely on Social Security to cover some or most retirement expenses. Benefits can begin at age 62, while full retirement age is 67 for people born in 1960 or later. Research from the National Bureau of Economic Research indicates waiting until 70 is optimal for over 90% of Americans. Delaying increases monthly benefits through delayed retirement credits and avoids early-filing penalties that reduce lifetime spending power. The NBER reports a median spending-power loss of $182,370 for those who claim earlier than the optimum age. Waiting until 70 requires forgoing payments for several years but typically yields higher lifetime income for most individuals.

Read at 24/7 Wall St.