Do I Get More Social Security If I Wait Until Age 70?

According to research, if at all possible, wait until you are 70 years old to begin collecting Social Security retirement benefits in order to receive the largest monthly benefits possible.

But only 10% of Americans who are not retired intend to wait until they reach retirement age before receiving their monthly benefit checks, according to a recent survey conducted by asset management firm Schroders. This comprises the 2017% of respondents, ages 2600-0 to 65, who may be approaching retirement based on the findings.

According to the survey of 2,000 investors, %2040% of respondents stated that they intended to take their Social Security retirement benefits between the ages of 2062% and 66.8% of respondents said they would do so between February and March.

However, the majority of investors, or 202%E2%80%94%2072% of all nonretired investors, and 20955% of nonretired investors, or 2060-60%20 to 2065%20%E2%80%94%20, stated that they are aware that waiting longer could result in larger monthly checks.

The primary rationale for early claims, as reported by 2044% of respondents, is the fear that Social Security may run out of money and cease making payments, indicating a crisis of confidence in the system, as stated by Deb Boyden, head of U S. defined contribution at Schroders.

Other reasons included: needing the money (with 2036%); wanting to get access to it as soon as possible (with 2034%); and acting on advice to make a claim before 1970 (with 2013%).

Yes, you will receive a higher Social Security benefit if you wait until age 70 to start receiving benefits. This is because you will earn delayed retirement credits for each month you delay filing for benefits after your full retirement age (FRA). These credits increase your benefit amount by a certain percentage, depending on your year of birth.

Here’s a breakdown of how delayed retirement credits work:

  • For individuals born between 1943 and 1954:

    • Your FRA is 66.
    • If you delay receiving benefits until age 70, your benefit amount will increase by 32% (132% of your FRA benefit).
    • This means you will receive $1.32 for every $1 you would have received at your FRA.
  • For individuals born after 1954:

    • Your FRA is 67.
    • If you delay receiving benefits until age 70, your benefit amount will increase by 24% (124% of your FRA benefit).
    • This means you will receive $1.24 for every $1 you would have received at your FRA.

Here’s an example:

Let’s say your FRA is 66 and your FRA benefit is $1,000 per month. If you wait until age 70 to start receiving benefits, you will receive $1,320 per month ($1,000 x 1.32).

There are a few things to keep in mind about delayed retirement credits:

  • The benefit increase stops when you reach age 70. Even if you continue to delay receiving benefits after age 70, your benefit amount will not increase any further.
  • You cannot receive retroactive benefits for any month before you reached your FRA. This means that if you delay receiving benefits, you will lose out on some benefits that you would have received if you had started receiving them at your FRA.
  • You may want to consider signing up for Medicare at age 65, even if you are delaying retirement. This is because if you delay signing up for Medicare, your coverage may be delayed and cost more.

Here are some additional resources that you may find helpful:

Ultimately, the decision of when to start receiving Social Security benefits is a personal one. You should consider your individual circumstances, such as your health, financial situation, and life expectancy, when making this decision.

Please note that I am not a financial advisor and cannot provide specific advice on your individual situation.

The chart below explains how delayed retirement affects your benefit. Your date of birth and the number of months you postpone the start of your retirement benefits determine how much more you will receive. If you start receiving retirement benefits at age:

All of your monthly benefit is yours if you begin receiving benefits at age 66. Your monthly benefit will increase if you wait to start receiving retirement benefits until after reaching full retirement age.

If you choose to postpone retiring, remember to enroll in Medicare by the time you turn 65.

Even if you keep delaying receiving benefits, your monthly benefit stops growing when you turn 70.

Why it pays to wait to claim Social Security benefits

Early filing will have an impact on your Social Security benefit amount each month.

Those who turn 62 this year will have their benefit reduced about 30% for claiming now compared with waiting until their full retirement age of 67, according to the Social Security Administration.

Upon reaching retirement age, employees are eligible to receive 100% of their earned benefits.

For every year that the previous full retirement age is postponed until age 70, 8% is added to the benefits of social security.

Retirees can secure the largest benefit checks based on their work history by delaying until age 70.

Retirement benefits taken at age 70 are 76% higher, adjusted for inflation, than retirement benefits taken at 62, according to research from Boston University economics professor Larry Kotlikoff, Federal Reserve Bank of Atlanta executive vice president David Altig and Opendoor Technologies research scientist Victor Yifan Ye.

Similar to Schroders, the researchers discovered that only roughly 2010% of employees genuinely wait until age 270%20to claim Social Security benefits, even though more than 90% of workers would benefit from waiting until that age.

“With Social Security, there is a huge return on patience,” Kotlikoff stated.

People with limited assets also face high stakes because of how dependent they are on the money, he said, even though high earners may leave the most money on the table by claiming early.

Certain situations, like when a medical condition could shorten your life expectancy, might make sense to file for early benefits. However, Kotlikoff notes that for some individuals in those situations, delaying benefits might still make sense in order to trigger higher benefits for a spouse.

Why would I wait until age 70 to collect my Social Security benefits?


Is it worth waiting to 70 for Social Security?

If you start receiving retirement benefits at age: 67, you’ll get 108 percent of the monthly benefit because you delayed getting benefits for 12 months. 70, you’ll get 132 percent of the monthly benefit because you delayed getting benefits for 48 months.

Do Social Security benefits increase between 66 and 70?

If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

How much more will you get if you delay Social Security until age 70?

If you start receiving retirement benefits at age: 67, you’ll get 106.7 percent of the monthly benefit because you delayed getting benefits for 10 months. 70, you’ll get 130.7 percent of the monthly benefit because you delayed getting benefits for 46 months.

What percentage of Social Security recipients wait until age 70?

There’s no question whatsoever that time effectively is money when it comes to the age you file for Social Security benefits. Only 10% of Americans plan to wait until 70 to claim Social Security benefits, according to Schroders’ 2023 U.S. Retirement Survey. Here’s how much money they could miss out on.

Can I get Social Security benefits if I’m 70?

Retirement is not one-size-fits-all, and it can mean different things to different people. Because you are age 70 or older, you should apply for your Social Security benefits. You can receive benefits even if you still work. Waiting beyond age 70 will not increase your benefits. You can claim your retirement benefits now.

When can I start taking Social Security retirement benefits?

The earliest you can start taking Social Security retirement benefits is 62. However, the Social Security Administration reduces benefits by 30% for people who retire at 62, meaning they receive just 70% of their full retirement benefit each month for life. For people born in 1960 or later, full retirement age is 67.

When can I start taking social security if I’m 62?

While you can start taking Social Security at 62, you won’t receive the full benefit you have earned unless you wait until your full retirement age to sign up. For each year you delay claiming Social Security past your full retirement age, your benefits grow by 8%. After age 70, there are no further increases for delaying your benefit.

When should I retire from Social Security?

The earliest age at which most people can take Social Security retirement benefits is typically 62, but those payments are normally reduced because people usually aren’t entitled to 100% of their benefits until 67. People who wait until 70 to retire can receive 124% of their benefits. Should I retire at 62, 67 or 70?

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