What happens to Social Security benefits if claimed at age 70?

Claiming Social Security benefits at age 70 is significant because that is the age at which individuals can receive the maximum benefit amount. Social Security benefits increase for each year you delay claiming past your full retirement age, which is typically between 66 and 67 years depending on your birth year. By waiting until 70, beneficiaries receive the full delayed retirement credits, which increases their monthly benefit substantially compared to claiming earlier.

Due to this structure, those who claim at age 70 will receive a higher monthly payment for the rest of their life compared to those who claim at an earlier age, thus maximizing their potential Social Security income. This strategy is especially beneficial for individuals who continue working or have a longer life expectancy, allowing them to optimize their financial well-being in retirement.