These Retirees Definitely Should Not Delay Their Social Security Claim

"While benefits can be claimed starting at 62, putting off a claim as long as possible until 70 will result in the amount of your monthly payment increasing. Since the Social Security benefits formula was created to equalize out the amount early and late claimers received, and since lifespans have gotten longer since the formula was created, delaying until 70 also gives you the best chance of getting more lifetime benefits. In fact, 7 in 10 retirees are better off if they wait."

"Full retirement age is based on birth year and it's 67 for anyone born in 1960 or later. If you wait until your full retirement age to claim spousal benefits you will receive 50% of your spouse's primary benefit. If you claim before full retirement age, then you will receive a reduced amount. If you claim after, though, you do not see any increase in your monthly payments."

"This is different from people who claim spousal benefits on their own work record. Those who get benefits based on their own earnings are also hit with early filing penalties for a claim before FRA, just as those who get spousal benefits are. However, people claiming their own retirement benefits also have the option to earn delayed retirement credits. Those credits increase payments by 2/3 of 1% per month until age 70."

Social Security benefits can be claimed starting at age 62, and benefits increase by delaying claims up to age 70. The benefits formula was designed to equalize early and late claimers, and longer lifespans make delaying more likely to yield higher lifetime benefits; about seven in ten retirees are better off waiting. Claimants planning to take spousal benefits who have reached full retirement age should not delay. Full retirement age is 67 for those born in 1960 or later, and spousal benefits at FRA equal 50% of the spouse's primary benefit. Delayed retirement credits apply only to benefits based on one’s own earnings.

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