Unlocking Greater Retirement Security at MASSMutual: The Benefits of Delaying Social Security to Age 70

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In this article, we will discuss:

1. Key factors influencing Social Security benefits and how MASSMutual employees can enhance their retirement income.

2. Strategic timing for claiming Social Security benefits and the financial impact of delaying claims until age 70.

3. The role of Cost of Living Adjustments (COLA) and complementary retirement savings plans like 401(k)s and IRAs in creating a solid financial foundation.

Social Security remains a foundational element of retirement planning in the United States, with approximately 51 million people receiving its benefits each month as of 2024. For those over 65, these benefits represent about 30% of their total income. A recent update from the Social Security Administration (SSA) in October 2024 indicates an average monthly benefit of $1,924.35 for retired workers ( Social Security Administration Report, October 2024 ). However, the specific amount you receive is heavily influenced by the age at which you choose to initiate these benefits. For MASSMutual employees, understanding these figures can be critical to preparing for a stable retirement.

Calculation of Social Security Benefits

The SSA calculates Social Security benefits based on four key criteria:

1. Work History : To increase benefits, having at least 35 years of work is essential.

2. Earnings History : Benefits are determined by your top 35 earning years, adjusted for inflation.

3. Full Retirement Age (FRA) : This is the age range where you qualify to receive 100% of the benefits due to you.

4. Claiming Age : The age at which you begin drawing benefits.

At MASSMutual, employees are encouraged to review their earnings and work history as part of retirement planning, keeping you on track for the highest possible Social Security benefits.

Strategic Claiming Age Points

The SSA identifies three critical periods for claiming Social Security benefits:

• Age 62 : The earliest age to claim, offering reduced benefits.

• Age 67 : Considered the full retirement age for those born after 1960, offering full benefits.

• Age 70 : The age at which benefits plateau, even if the claim is deferred.

As of December 2023, monthly payments vary significantly depending on the proportion of the initial benefit amount available at each stage ( Social Security Claiming Options, December 2023 ). For example, if the base benefit is $1,000 at age 67, claiming at 62 would provide $700 per month, reflecting a 30% reduction. Conversely, delaying until age 70 increases the monthly payout to $1,240, a 24% gain over the full benefit reached at age 67.

Cost of Living Adjustments (COLA)

The SSA regularly adjusts benefit levels to address inflation through the Cost of Living Adjustment. For 2025, the COLA has been set at 2.5%, helping maintain the purchasing power of benefits over time ( SSA COLA Updates, 2025 ). This adjustment is especially relevant for MASSMutual employees, as it directly affects the value of their retirement benefits.

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Comprehensive Retirement Strategy

While Social Security benefits are vital, they should not be the sole source of post-retirement income. Investing in retirement savings vehicles like 401(k)s and Individual Retirement Accounts (IRAs) is also advisable. These tools complement Social Security and offer additional growth potential. For MASSMutual employees, combining these options can create a well-rounded financial strategy for the future.

In Conclusion

Social Security remains a critical component of retirement planning at MASSMutual. The choice of when to claim benefits can have significant implications for long-term financial well-being. By analyzing the effects of different age brackets and incorporating these benefits into a broader retirement strategy, retirees can maintain financial stability and enjoy a fulfilling retirement.

For those planning to retire at 70, considering the effect of continued work on Social Security benefits is important. Working longer can increase benefits by adding more years of earnings to your record and accruing delayed retirement credits. According to the Social Security Administration, each additional year of deferral after full retirement age until age 70 increases annual benefits by 8% ( SSA Delayed Retirement Credits ).

Retiring at age 70 is akin to perfecting a craft. Just as wine matures and deepens in flavor over time, delaying Social Security benefits enhances their value. Each additional month of waiting after full retirement age adds financial strength, allowing for more substantial payouts when benefits are finally accessed.