Six Reasons to Claim Social Security Before 70

The standard advice is to wait until 70. Taylor Schulte, drawing on research by Social Security researcher Derek Tharp, thinks that advice deserves more scrutiny than it gets. Six reasons why.

Discount rates. Most academic studies justifying delay assume a 0–2% real return on the money you'd otherwise leave invested. A 60/40 portfolio has historically earned closer to 5% above inflation. At that rate, early claiming looks a lot more competitive.

Sequence risk. Delaying means larger portfolio withdrawals in your early retirement years. If the market drops in that window, the damage to your nest egg is permanent in a way it isn't later.

Mortality risk. Claim at 62 and you collect something even if you die young. Claim at 70 banking on average life expectancy and you're ignoring the real cost of not making it there.

Flexibility. A portfolio can be tapped in a lump sum for a large expense. Social Security cannot.

Policy risk. A 2025 AARP study found only 36% of Americans feel confident the program will be there for them. The trust fund is projected to run short by 2033. That's a real risk most delay calculations don't price in.

Spending psychology. A 2025 Retirement Income Institute study found retirees spend about 80% of guaranteed income like Social Security or a pension, but only about 50% of portfolio income. Claiming earlier may mean actually spending the money during your healthiest years, rather than sitting on a portfolio you're afraid to touch.

Schulte isn't arguing everyone should claim at 62. Health, savings, tax situation, and personal goals all belong in the calculation. The point is that "always wait until 70" is a rule of thumb, not a law of nature, and the research behind it rests on assumptions worth checking against your own numbers.

Financial planner Taylor Schulte, drawing on research by Social Security researcher Derek Tharp, lays out six overlooked arguments for claiming Social Security earlier than the standard advice of waiting until age 70. The case rests on discount rates, sequence risk, mortality risk, portfolio flexibility, policy uncertainty, and spending psychology. On discount rates: most academic studies justifying delay use a 0–2% real return assumption, but a diversified 60/40 stock-bond portfolio has historically earned closer to 5% above inflation, which makes the math of early claiming look far more competitive. On sequence risk: delaying forces larger portfolio withdrawals in the early retirement years, the period when a market downturn does the most permanent damage to a nest egg.

On mortality: claiming at 62 rather than 70 protects against dying before the higher benefit ever pays off — focusing only on average life expectancy ignores the real cost of an early death. On flexibility: a portfolio can be tapped in a lump sum; Social Security cannot. On policy risk: a 2025 AARP study found only 36% of Americans feel confident about Social Security's future, and the trust fund is projected to run short by 2033 — a real but often un-priced risk. On psychology: a 2025 Retirement Income Institute study found retirees spend about 80% of guaranteed income (Social Security, pensions) but only about 50% of portfolio income, meaning earlier claiming may actually help people enjoy their money during their healthiest years. Schulte emphasizes that none of this means everyone should claim at 62 — health, savings, tax situation, and personal goals all matter — but the standard advice to always wait deserves scrutiny.