  The optimal age that a retiree claims social security retirement benefits is
in general a complicated function of many factors. However, if the
beneficiary's finances and health are not the constraining factors, it is
possible to formally derive mathematical models that maximize a well-defined
measure of his total benefits. A model that takes into account various factors
such as the increase in the benefits for delayed claims and the penalties for
early retirement, the advantages of investing some of the benefits in the
financial markets, and the effects of cost-of-living adjustments shows that not
waiting until age 70 is almost always the better option. The optimal claiming
age that maximizes the total benefits, however, depends on the expected market
returns and the rate of cost-of-living adjustments, with the higher market
rates in general pushing the optimal age lower. The models presented here can
be easily tailored to address the particular circumstances and goals of any
individual.
