Updated

Updated · 24/7 Wall St. · Jul 17

Suze Orman Urges Higher Earners to Delay Social Security to 70 for Bigger Survivor Benefits

Updated

Updated · 24/7 Wall St. · Jul 17

Suze Orman Urges Higher Earners to Delay Social Security to 70 for Bigger Survivor Benefits

Q: With Social Security's trust fund facing a 2032 shortfall, is delaying benefits to age 70 still a safe bet for your retirement?

Delaying to 70 is still often a sound strategy, but it is no longer a risk-free one. The key fact is that the projected 2032 shortfall does not mean Social Security disappears. If the Old-Age and Survivors Insurance trust fund runs out of reserves, payroll taxes are still expected to cover about 78% of scheduled benefits. That implies a broad benefit cut of roughly 22% if lawmakers do nothing. So the full benefit now shown on statements is not guaranteed. Even so, delaying can still make sense because the higher benefit earned by waiting is larger before and after any cut. A worker with a $3,000 monthly benefit at full retirement age would get about $2,100 at 62 or about $3,720 at 70. If benefits were later reduced across the board, 78% of $3,720 would still be more than 78% of $2,100. That is why Suze Orman and other planners still view delaying, especially for the higher-earning spouse, as valuable survivor protection. The strategy is strongest for healthy couples with other savings and a need to protect the surviving spouse’s lifetime income. It is weaker for people with poor health, shorter life expectancy, or immediate cash-flow needs. Drawing from IRAs or other savings while waiting can also reduce future required minimum distributions and taxes. So delaying to 70 is still a reasonable bet for maximizing lifetime and survivor income, but not a fully safe one. It should be treated as part of a broader retirement plan, not as a guarantee.

3 articles · Updated · 24/7 Wall St. · Jul 17

Age 70 is the key target in Orman’s advice: the higher-earning spouse should delay claiming Social Security to maximize the survivor benefit a widow or widower can keep for life.
A $3,000 full-retirement-age benefit falls to about $2,100 if claimed at 62 but rises to roughly $3,720 at 70, creating a gap of more than $1,600 a month that also compounds with future COLAs.
That strategy matters because Social Security stops one of the two checks when a spouse dies, and the survivor keeps only the larger benefit, including any delayed-retirement credits the deceased earned.
Orman argues fears about future benefit cuts should not drive early claiming: even if the trust fund reserves deplete in Q4 2032 and payments drop to about 78% of scheduled benefits, a larger base benefit still pays more.
For healthy couples with savings, she says drawing more from IRAs in the late 60s can bridge the wait, while the lower-earning spouse has more flexibility to claim earlier for cash flow.