Should You Delay Social Security?

How One Decision Could Add $500,000 to Your Retirement

As you approach retirement, one of the most impactful decisions you’ll make is when to start taking Social Security benefits. This single choice can dramatically shape the quality of your retirement—sometimes by hundreds of thousands of dollars.

At The Noble Group, we recently helped a couple navigate this very decision. They were both 60 years old and planning to retire at 62 with an annual income goal of $100,000. Their portfolio included a little over $1.4 million in assets, split between a $460,000 brokerage account and $960,000 in a 401(k).

Their initial plan? Retire and immediately start claiming Social Security at 62. But here’s what happened when we took a closer look using our financial planning software…

Scenario 1: Start Social Security at 62

If they retired and started drawing Social Security at 62, the couple had a 78% probability of retirement success—meaning that in 780 out of 1,000 simulations, they wouldn’t run out of money by their assumed life expectancy.

While 78% is technically within our confidence range, it’s on the lower end—and that’s before factoring in things like future healthcare costs or market volatility.

Scenario 2: Delay Social Security to Age 67

Next, we examined what would happen if they delayed claiming Social Security until full retirement age (67) while covering living expenses using other assets.

By doing this, the probability of retirement success increased to 87%. This jump is thanks to avoiding the early benefit reduction and allowing their Social Security payments to be larger when they do start.

Here’s where it gets more compelling…

Scenario 3: Delay Social Security to Age 70

Delaying benefits until age 70 increased their retirement success probability to just over 90%.

Their lifetime Social Security benefits would increase from $1.76 million (if started at 62) to $2.26 million—a difference of more than $500,000.

The break-even analysis shows that if the client lives beyond age 78, delaying Social Security to 70 becomes the more advantageous route financially.

Why Such a Big Difference?

There are two key reasons:

1. Reduced Benefits at 62 Are Permanent: If you start early, you’re locking in a lower monthly amount for life.

2. Delayed Retirement Credits Pay Off: Waiting past full retirement age adds 8% simple interest annually to your benefit up to age 70.
   

In the example above, simply delaying Social Security by 8 years resulted in a stronger retirement plan and an additional half-million dollars in total income.

So, What Should You Do?

There’s no one-size-fits-all answer. Your decision should be based on your goals, life expectancy, health, and financial resources. That’s where a Social Security analysis tailored to your unique situation can help.

LPL Tracking: #739033-2

This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your financial advisor prior to investing.

All investing includes risks, including fluctuating prices and loss of principal.​