I’m a Retiree: Here’s Why I’m Not Taking Social Security Until After 2025
Written by
Laura Beck
Edited by
Gary Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The first lesson of retirement planning is: Timing is everything. Just ask Sue M., a 68-year-old retiree who’s made the big decision to hold off on claiming her Social Security benefits until after 2025. In a world where many are eager to start cashing those checks ASAP, Sue’s strategy might seem counterintuitive — but she has good reasons.
Here’s why one retiree isn’t taking Social Security until after 2025.
The COLA Conundrum: Why 3.2% Just Doesn’t Cut It
Remember when getting a 3.2% raise would be cause for celebration? Well, in the world of Social Security cost-of-living adjustments (COLAs), that number isn’t exactly making soon-to-be retirees feel great.
“When I saw that 3.2% COLA for 2024, I thought, ‘Is that supposed to cover my grocery bill? I don’t think so.'” Sue said. And she’s not alone. According to The Senior Citizens League, two-thirds of surveyed retirees say their expenses increased more than 3.2% this year.
That’s not the worst of it, either. The COLA for 2025 is projected to be just 2.6%. “I guess I just figured I’d be better off waiting to see if things improve,” Sue shared. “I’m doing okay financially so why not?”
Inflation: The Uninvited Guest at the Retirement Party
If you think inflation is just a buzzword tossed around by economists, think again. For retirees like Sue, it’s the unwelcome houseguest that keeps eating all the snacks and refuses to leave.
“I know I sound like a broken record but every time I go to the grocery store or the gas station, I feel like I’m in a real-life version of ‘The Price is Right’ — and I’m always overbidding,” Sue said with a laugh that didn’t quite hide her frustration.
She’s not alone. The 2024 U.S. Retirement Survey from Schroders found that less than 50% of Americans in retirement believe they have enough money, and nearly 90% are worried about rising prices devaluing their savings.
Maximizing Benefits: The Waiting Game That Pays Off
Here’s where Sue’s strategy gets interesting. For every year she delays past her full retirement age up to age 70, her benefit amount increases by about 8%. It’s like getting a guaranteed raise each year she waits.
“I did the math, and it’s like compound interest on steroids,” Sue said. “By waiting until after 2025, I’m not just hoping for better COLAs — I’m actively growing my base benefit.”
Building a Bridge: How Sue’s Making It Work
Let’s address the elephant in the room: Delaying Social Security isn’t an option for everyone. “I’m lucky to have some savings and a part-time consulting gig that helps cover my expenses,” Sue said. “I know not everyone has that luxury, but if you do, definitely think about it and look into it.”
From downsizing her home to a retirement community near her son and daughter-in-law to becoming a coupon-clipping champ, Sue’s found creative ways to make her savings stretch. “Seniors get a lot of discounts! Thank you, AARP!” she said.
The Final Word
Social Security’s obviously a big deal, but it’s not one-size-fits-all. Sue’s got her plan, but that doesn’t mean it’ll work for everyone. The key, as always, is to figure out what makes sense for you.
Don’t rush into it. Take your time, do some homework. Maybe you’re ready to jump in now, or maybe you want to hold off. At the end of the day, whatever puts you in the best position for the golden years of your dreams is what you need to work toward.
More From GOBankingRates
