Full Retirement Age Just inched Higher: How Waiting One More Year Could Boost Your Monthly Check
Written by
Vance Cariaga
Edited by
Angela Corry
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Social Security will hit a major milestone in 2027 because it’s the year people born in 1960 will turn 67 years old. This means they’ll reach full retirement age (FRA), which is when you can claim 100% of your earned Social Security benefits.
Since 1983, the FRA has been gradually inching higher to account for longer lifespans, according to the Social Security Administration (SSA). It originally was 65 years old. Next year marks the first time that 67 will apply to all new applicants.
When Can You Claim Social Security?
Although you’re entitled to all of your earned Social Security benefits at your full retirement age, you can claim them as early as age 62. However, your check will be much smaller than if you waited.
As the SSA noted, you’ll only get 70% of your earned benefits at age 62. Here’s the percentage as you get older:
- Age 63: 75% of your earned benefits
- Age 64: 80%
- Age 65: 85%
- Age 66: 90%
- Age 67: 100%
The biggest payment comes if you hold off until age 70 to file for benefits. After that, there’s no financial advantage to waiting.
The Advantage of Delaying Your Claim
When it comes to claiming Social Security, delaying it by even one year can “significantly increase” your monthly income, according to Nancy Gates, lead educator and financial coach at Boldin, a financial planning platform that helps you strategize a retirement plan.
“Social Security benefits grow roughly 8% annually after full retirement age, up to age 70,” she told GOBankingRates. “For a high earner, a single year’s delay can boost monthly income by about $200, adding nearly $50,000 over a 20-year retirement.”
For an average earner, delaying by two years produces a similar boost of about $200 a month, which could be worth around $48,000 over 20 years. The financial gain really adds up if you wait as long as possible before filing for benefits.
“The gap between claiming at 62 versus 70 can be as much as $500,000 in lifetime value,” Gates said.
One Month = Thousands of Dollars
Even waiting a month before filing for benefits can increase your Social Security payment.
For example, when you file at age 66 years 11 months, you are entitled to 99.4% of your earned benefits. If your total earned benefits are $3,000 a month, your check will be $2,982 at age 66 years 11 months.
Holding off an extra month means you get the full $3,000 – or an additional $18 a month for the rest of your life. If you live another 25 years, that adds up to $5,400.
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