Suze Orman's Makes A 32% Benefit Boost Argument, But Dose It Actually Hold Up?

"Suze Orman has long maintained that most Americans claim Social Security at the wrong age. Her advice is unambiguous: wait until age 70 to maximize your lifetime benefit. She frames the decision around an 8-year break-even calculation, longevity risk, and the 32% benefit increase you receive by delaying from full retirement age to 70. For someone who expects to live into their 80s or beyond, the math favors patience."

"Her reasoning is grounded in reality. Every year you delay claiming past full retirement age adds 8% to your annual benefit, adjusted for inflation through annual cost-of-living adjustments. That guaranteed return is difficult to replicate elsewhere, especially with the federal funds rate at 3.75%. With inflation running at 2.2% year-over-year, the purchasing power of early benefits erodes steadily. A larger base benefit at 70 compounds with future COLA adjustments, protecting against inflation over decades."

Waiting until age 70 to claim Social Security yields a substantial guaranteed increase in annual benefits, including a roughly 32% boost from full retirement age to 70. Each year delayed past full retirement age adds about 8% to the benefit, and annual cost-of-living adjustments compound that larger base, helping protect purchasing power against inflation. The typical break-even point falls around ages 78–80, so those who expect to live into their 80s or beyond generally benefit from waiting. Claiming early can be rational for those in poor health, with urgent financial needs, unemployment, or specific spousal benefit considerations.

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