Sumary of More Retirees Are Making This Smart Social Security Move — Are You?:
- In fact, there was a 5% drop in the number of applications to start retirement benefits.
- There are two simple reasons: Delaying Social Security results in larger monthly income It also maximizes the chances of earning more lifetime benefits See, retirees can get their standard benefit by starting Social Security checks at their designated full retirement age.
- But since FRA is between 66 and 2 months and 67 depending on birth year, those who start their checks before then end up shrinking their monthly benefit since they’re subject to early filing penalties.
- Seniors could claim benefits as soon as 62, and many do when leaving the workforce, but this can leave them with much less monthly income — a full 30% less if their FRA is 67. Retirees who claim at their FRA still miss out on maximizing their benefit, as starting checks then would mean forgoing the chance to earn delayed retirement credits.
- These credits can be earned until the age of 70 and they increase the amount of monthly checks up until then.
- The benefits program was designed so the claiming age shouldn’t matter as smaller checks obtained sooner should theoretically equalize out with larger checks obtained after a delay.