Jul 19, 2026
Once upon a time in America, when Social Security was first created, it was supposed to be part of a three-legged stool supporting retirees that included retirement benefits, a pension and savings.
Today, the median retirement account balance among 65-year-olds is $103,202, and only around 18% of workers have a pension. To say the stool is wobbly would be an understatement. It’s about to collapse for many.
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Some retirees are better off than others, though. Let’s pretend, for example, that we have Debra and Patrick. Patrick has a $100,000 pension and $1 million invested. He’s ready to retire at 67, but now he has to decide whether to claim Social Security right away or wait until 70 to maximize survivor benefits.
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Here’s what Patrick needs to know before he decides.
Waiting pays — and retirement doesn’t mean you have to claim Social Security
Before Patrick claims Social Security, he should carefully consider what delaying his benefits can do for both his and his wife’s finances.
“The math on waiting, every year, gets an 8% step up in the benefit base that caps at age 70 and would provide a guaranteed income from the government for life. It’s a 24% increase from what it would be today,” Christopher Walsh, a financial advisor at Capital Choice Financial Group, told Moneywise.
This benefits increase comes from earning delayed retirement credits available between full retirement age and 70. Since Patrick was born in 1959, his FRA is 66 and 10 months, so he can actually earn slightly over a 24% increase by maxing out the credits. And since his credits increase survivor benefits too, his wife will end up better off for each month he waits.
Not only will Patrick boost his wife’s future benefits, but multiple studies have revealed that around 90% of people get more lifetime benefits if they claim at 70. Since life expectancies have become longer, more retirees benefit by waiting. So, delay is a win/win for Patrick and Debra.
It’s important to note that Patrick could still retire even if he waits to claim. “Retirement and claiming Social Security are really two different things,” Evan Mills, Associate Financial Advisor at Scholar Advising, said to Moneywise. “You can have enough money to retire at 67, but that doesn’t necessarily mean claiming Social Security now makes sense.”
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With his $100,000 pension and his $1 million investments able to comfortably produce another $40,000 by following the 4% rule for safe withdrawal, he should have more than enough as long as he’s not spending living beyond his means.
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Does his pension have survivorship benefits?
When deciding how to proceed, financial experts also recommend that Patrick consider the details of his pension.
“The bigger question I would ask first is what happens to your pension when you pass?” Walsh said. “Does your spouse get all of that pension, a portion of that pension, or none of that pension? If it’s none or a portion, then it might make sense to delay Social Security as long as possible for the financial needs of the surviving spouse if you precede them in death.”
Aaron Ulrich, owner of Integra Financial Planning, LLC, agrees. “The key point I would look at is survivorship benefits on pension. If the pension-holding spouse dies, how much will then go to the surviving spouse? Depending on that level, yes, absolutely, you would want to look at Social Security benefits as a de facto pension survivorship plan,” he told Moneywise.
However, he said that “if the pension provides 100% spousal survivorship benefits, then waiting for the increased Social Security payment could become less important.”
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One of the biggest reasons to maximize Social Security is that it is protected against inflation by COLAs and is guaranteed to last for life. While some pensions also have these features, others don’t. And these benefits are valuable enough that it’s smart to make strategic Social Security filing choices.
“The biggest risk isn’t dying before you earn enough to make up for delaying. It’s outliving your portfolio,” said Mills. But you won’t outlive your Social Security. “So if you’re relying on this money long term, taking a permanently reduced benefit by claiming early is one of the worst things you can do, because that reduction just stays with you,” Mills said.
Since Patrick can bring in $140,000 now with his pension and account distributions, based on the 4% rule, there’s likely very little reason he shouldn’t wait to claim Social Security later, especially if his pension will disappear or be reduced when he dies. His wife may really need the extra Social Security when that happens, and if he happens to live a long time, both benefit anyway.
As Mills said, “If you can bridge the gap with your other assets, delaying and locking in that larger benefit for both you and your spouse is usually the stronger move.”
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
