There’s no denying that waiting until age 70 to claim Social Security is the path to earning the largest possible monthly benefit<\/a>. Yet, waiting isn’t right for everyone. For some, waiting means losing the chance to enjoy retirement while they’re still healthy. For many, waiting also means running into the hidden costs of postponing Social Security. <\/p>\n Opportunity cost <\/p>\n Each year that you delay Social Security between the ages of 62 and 70, you forgo 12 monthly checks. Waiting until age 70 means missing out on 96 total benefit payments. For example, if you’re entitled to $1,500 per month at age 62, that would be $144,000 in benefits you could have invested, spent on everyday needs, or used to delay tapping into your retirement accounts. <\/p>\n Break-even point <\/p>\n Planning for retirement typically includes figuring out your break-even point — the age at which the extra benefits you receive from claiming Social Security later equal the amount you would have received if you’d chosen to start early. However, the break-even calculation ignores the time value of money. <\/p>\n Due to inflation, a dollar today is worth more than it will be in six or eight years, particularly if you choose to invest early benefits or spend those funds rather than taking money from tax-advantaged retirement accounts<\/a>, where your money can continue to grow. <\/p>\n Let’s say you withdraw $25,000 annually from your IRA while waiting for larger Social Security benefits. Over the course of eight years, you would have taken $200,000 from your retirement account — money that could have remained invested and continued compounding. <\/p>\n Tax bracket boost <\/p>\n Delaying Social Security until age 70 will provide you with the largest check you’re eligible for. However, three to five years later — at age 73 or 75 (if you were born in 1960 or later) — you must begin taking Required Minimum Distributions (RMDs) from tax-advantaged retirement accounts. The combination of a larger benefit and your RMDs can push you into a higher tax bracket. <\/p>\n Claiming earlier allows you to spread retirement income more evenly through the years, which could help you remain in a lower tax bracket throughout retirement. <\/p>\n For some, delaying Social Security is the right move. For example, someone from a family with a long history of longevity, who also lives a long time, or someone who began saving for retirement late, may benefit from waiting. <\/p>\n However, that doesn’t cover everyone. The best strategy depends on important issues, such as your health, how you hope to spend retirement, and your overall financial picture. As you plan, remember to factor in the pros and cons associated with both waiting and claiming benefits early. <\/p>\n The\u00a0$23,760\u00a0Social Security bonus most retirees completely overlook <\/p>\n If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known\u00a0“Social Security secrets”<\/a> could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. <\/p>\n Many Americans leave money on the table in retirement. Learn more about these retirement strategies and more, available when you join Stock Advisor. <\/p>\n View the “Social Security secrets” \u00bb<\/a> <\/p>\n The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Hidden costs <\/p>\n