Still, there are some people for whom delaying benefits won't make sense, despite a heftier payout and lower tax bill. Those who have a terminal illness or shorter life expectancy may want to collect what they can as soon as they can (unless they're married and concerned about a spouse’s benefits).
Also, consider the breakeven—the age a retiree has to achieve to make delaying benefits worthwhile. Typically, you have to live to 82.5 to reap the benefits of holding off until age 70, according to Reichenstein. Those who die before then would have been better off taking benefits at full retirement age. It’s an awkward and difficult calculation to make though, and really, who knows?
Others may argue that Social Security is on shaky footing and thus, not collecting benefits as soon as possible is foolish. Sure, the latest projections say the trust fund won't be able to pay full benefits starting in 2035, but if the past is any guide, any changes to shore up finances would likely focus on changing rules for younger people with years left to work, rather than soon-to-be retirees on the cusp of receiving benefits.
Alexis Leondis is a Bloomberg Opinion columnist covering personal finance. Previously, she oversaw tax coverage for Bloomberg News.