"Orman believes waiting makes good sense because the rules of the Social Security benefits program result in a reduction in benefits if you claim your Social Security at a younger age. In fact, as Orman points out, if you wait until you turn 70, your benefit continues growing month after month from the time you first become eligible for it."
"While each monthly increase isn't huge, the cumulative impact of all of the monthly increases is very substantial, with Orman stating that "if you wait all the way until you turn 70, your benefit will be 76% higher than if you start at age 62." These monthly increases happen if you wait to claim benefits because you avoid early-filing penalties."
If in late 50s and in good health, seriously consider delaying the start of Social Security benefits to earn a higher monthly benefit. Eligibility begins at 62, but claiming before full retirement age reduces monthly benefits. Full retirement age is 67 for people born in 1960 or later; delaying past full retirement age earns delayed retirement credits that increase benefits month by month. Each monthly increase is modest, but the cumulative effect is substantial. Waiting until age 70 can produce a benefit about 76% higher than starting at 62. Avoiding early-filing penalties and accruing credits drive these gains.
Read at 24/7 Wall St.
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