WASHINGTON, D.C. — For many Americans, deciding when to claim Social Security is one of the most important retirement decisions they’ll ever make. While some workers begin collecting benefits as soon as they become eligible, others choose to wait—and that decision can significantly increase their monthly income for the rest of their lives.
For example, a worker eligible for a monthly benefit of $1,800 at full retirement age could increase that amount to approximately $2,232 per month by delaying benefits until age 70. The increase comes from delayed retirement credits, a feature built into the Social Security system that rewards people who postpone claiming beyond their full retirement age.
Here’s how it works and who may benefit from waiting.
How Delaying Benefits Increases Your Monthly Check
Your Social Security retirement benefit depends on several factors, including:
- Your lifetime earnings.
- Your work history.
- The age at which you claim benefits.
If you claim before reaching your full retirement age, your monthly benefit is generally reduced.
If you wait until after your full retirement age, your benefit increases through delayed retirement credits until age 70.
For many retirees, these credits add up to about 8% per year, resulting in a substantially larger monthly payment.
How an $1,800 Benefit Could Become $2,232
Consider this example:
| Claiming Age | Estimated Monthly Benefit |
|---|---|
| Full Retirement Age | $1,800 |
| Age 70 | About $2,232 |
That’s an increase of roughly 24%, or $432 more each month.
Over a full year, that equals:
- About $5,184 in additional annual benefits.
Over a retirement lasting 20 years, the difference could exceed $100,000, depending on longevity and future cost-of-living adjustments (COLAs).
Why Some People Claim Earlier
Waiting isn’t the right choice for everyone.
Many retirees claim benefits before age 70 because they:
- Need income immediately.
- Retire earlier than expected.
- Experience health issues.
- Have caregiving responsibilities.
- Prefer receiving benefits sooner rather than later.
Personal finances, life expectancy, and retirement goals all play an important role in the decision.
Who May Benefit Most From Waiting?
Delaying benefits may be especially valuable for people who:
- Expect to live well into their 80s or beyond.
- Have other retirement savings to cover expenses while waiting.
- Want a larger guaranteed monthly income.
- Are planning for a surviving spouse who may later receive survivor benefits based on the higher benefit amount.
Because Social Security provides inflation-adjusted lifetime income, increasing the monthly benefit can offer additional financial security later in retirement.
Factors to Consider Before Delaying
Before deciding when to claim, retirees should evaluate:
- Current income needs.
- Health and family longevity.
- Other retirement assets.
- Employment plans.
- Tax considerations.
- Medicare enrollment timing.
A claiming strategy that works well for one person may not be appropriate for another.
Don’t Forget About COLAs
Regardless of when you begin receiving Social Security, eligible beneficiaries generally receive annual Cost-of-Living Adjustments (COLAs) when inflation warrants them.
A larger starting benefit means future percentage-based COLAs are applied to a higher monthly amount, potentially increasing lifetime income even further.
Bottom Line
For some retirees, delaying Social Security until age 70 can substantially increase monthly income. In one example, an $1,800 monthly benefit could grow to approximately $2,232, providing an extra $432 each month for life. However, the best claiming age depends on individual circumstances, including health, financial needs, retirement savings, and long-term goals. Carefully weighing those factors can help retirees choose the strategy that best fits their situation.
