Suze Orman Says Delay Social Security if This Factor Applies to You

"According to Orman, "If you are in your late 50s and in good health, you should seriously consider the upside of delaying when you start, so you can earn a higher benefit." Orman has urged her readers to delay a claim, ideally until the age of 70, despite the fact that you become eligible to first claim benefits at 62. 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. These would apply if you claimed your Social Security checks before your full retirement age, which is 67 if you were born in 1960 or later. Once you have reached FRA and you continue to delay, you earn delayed retirement credits."

If in late 50s and in good health, delaying Social Security claiming until age 70 increases monthly benefits and can maximize lifetime payouts. Eligibility to first claim begins at age 62, but claiming before full retirement age (67 for those born in 1960 or later) triggers reductions. After reaching full retirement age, continued delay earns delayed retirement credits that increase benefits month by month. Each monthly increase is modest, but the cumulative effect can be substantial. Waiting until age 70 can result in a benefit about 76% higher than claiming at age 62. Avoiding early-filing penalties and accumulating credits produces larger benefits.

Read at 24/7 Wall St.