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Single, childless retirees who have never been married may have fewer strategies available for claiming Social Security benefits than spouses, widows, and divorcees, but no less incentive to maximize their retirement income stream.
Indeed, such singles need not worry about how the timing of their Social Security benefits may impact a surviving spouse or minor children, which motivates many to begin claiming benefits at the earliest opportunity — age 62. But that may not provide the biggest payoff.
Why? Filing for benefits before your full retirement age, which ranges from 66 or 67 depending on the year you were born, results in a permanent reduction in the amount of your monthly benefit to compensate for the extra years you will be collecting Social Security. (Learn more: The 2025 changes coming to Social Security)
That reduction can impact single retirees disproportionately if they do not have a spouse, family members, or younger friends they can count on to act as caregivers in the event their health should fail. Indeed, single seniors who lack a support network are sometimes forced to move into assisted living facilities sooner than their peers, which can be costly. (Related: 3 ways to pay for long-term care)
Those who are healthy and able to work a few extra years can reduce the risk of outliving their savings significantly by waiting until at least their full retirement age to collect Social Security, which would entitle them to 100 percent of their monthly benefit.
Claiming strategies to help singles maximize their Social Security benefit
Perhaps the biggest opportunity to augment your guaranteed retirement income, however, is to delay your benefits even longer, which is among the most effective Social Security strategies for singles. The amount of your monthly check will increase by 8 percent per year for each year you delay benefits after your full retirement age until you reach age 70, when delayed retirement credits cease to accrue.
Thus, by resisting the urge to file for benefits early and working a few extra years as you are able, you not only position yourself to save more into your retirement accounts, but also increase the size of your monthly Social Security check down the road — a potential game changer, especially for those who have undersaved. (Learn more: Retirement savings catch up: 3 moves)
Women, in particular, who tend to live longer than men, may benefit most from delaying Social Security. Women who reach age 65 today can expect to live, on average, until age 86.7, while men who reach age 65 today can expect to live until age 84.1. Remember, though, that those are merely averages. Roughly one-third of 65-year-olds today will live to age 90, and about one in seven will live past age 95.1
Nearly one in four respondents (23 percent) to a recent survey by the Wharton School at the University of Pennsylvania regretted claiming Social Security retirement benefits too early. The older the respondents were, the more likely they were to express this regret.2
Some file for benefits early because they undersaved and cannot afford to wait, while others need the monthly income to cover medical bills, a loss of employment, or other unforeseen expense. By doing so, however, they are effectively leaving money on the table that they would otherwise be eligible to collect.
Keep in mind, however, that delaying retirement benefits is not necessarily the right move for everyone. Singles who do not expect to reach the average life expectancy based on family medical history or due to a life-threatening diagnosis, and those who have immediate financial need, may do well to claim at the earliest opportunity. (Related: Estate planning for singles)
Use the American Academy of Actuaries longevity calculator to estimate your own life expectancy, but keep in mind it does not account for the time value of money. If you do not need your Social Security income to pay the bills, for example, you might be able to invest your retirement benefit and to potentially produce a bigger future payout.
Filing options
There are essentially three Social Security claiming strategies for singles, with a range of options that begin at age 62 and end at age 70:
- They can claim reduced benefits as early as age 62.
- They can wait to claim their full benefit until their full retirement age.
- They can delay Social Security until after their full retirement age to increase their monthly benefit.
Each claiming strategy produces a different outcome in terms of lifetime payout. To illustrate, let’s consider hypothetical Michelle. Michelle was born in 1958, making her full retirement age 66 and 8 months. Her full retirement age benefit currently is $2,400 a month.
If she begins collecting at age 62 and lives to age 95, her cumulative lifetime benefits would be more than $200,000 less than had she waited until her full retirement age, and nearly $375,000 less than had she waited until age 70.
Your own calculation would likely be different, depending on how much you earned, how much you contributed to Social Security, and the age at which you started claiming benefits. (Related: Social Security check size drivers)
Social Security retirement benefits are one of the few sources of retirement income that are guaranteed to last as long as you live.
Before making a decision about this important benefit, it’s a good idea to learn about the filing options that may be available to you. A Social Security representative can help. In addition, a financial professional can help you compare potential payout scenarios to help you make a more informed decision.
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This article was originally published in May 2018. It has been updated.
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________________________________________1 Social Security Administration, “Benefits Planner: Life Expectancy,” May 3, 2022.
2 Wharton School of the University of Pennsylvania, “Why Older Americans Regret Not Saving Early and Enough,” Jan. 23, 2023.
