Do You Qualify for Delayed Social Security Credits? Here’s Who Benefits Most
Written by
Kerra Bolton
Edited by
Zuri Anderson
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Claiming Social Security too early can shrink a monthly check for life. Still, most Americans are not planning to wait.
About 92% say they do not expect to delay benefits until age 70 to receive the maximum Social Security payment, according to a recent Schroders U.S. Retirement Survey.
That decision matters.
Waiting to claim benefits can increase monthly payments through delayed Social Security credits. Knowing who qualifies and who benefits most can help retirees make a smarter choice.
What Are Delayed Credits
Delayed Social Security credits reward people who wait to claim benefits.
Benefits typically increase by about 8% for each year someone delays claiming after full retirement age until age 70, according to the Social Security Administration (SSA).
That increase can add up over time. For example, someone eligible for $2,000 a month at full retirement age could receive roughly $2,480 per month by waiting until age 70.
Since Social Security benefits are paid for life, that higher payment can significantly increase total retirement income. There is no additional increase after age 70, so delaying beyond that age does not raise the benefit further.
Who Qualifies
Retirees can begin claiming Social Security at age 62, but their monthly checks will be smaller.
For people born in 1960 or later, full retirement age is 67. That’s when they can start receiving their full benefits. Anyone who waits to claim benefits after reaching full retirement age can earn delayed Social Security credits until age 70.
Who Benefits Most
Delayed Social Security credits can be especially helpful for retirees who expect to live longer and those who can afford to wait before claiming benefits.
Higher earners may also benefit more from delaying. Since their starting benefit is larger, delayed credits can add hundreds of dollars to a monthly payment. Married couples may also want to consider waiting. Delaying benefits can increase the survivor benefit a spouse may receive later.
That delay can make a noticeable difference in long-term household income. In many cases, even a few years of delay can raise monthly retirement income enough to help cover housing, healthcare or other everyday expenses later in life.
Why Many Retirees Claim Early
Even though many Americans understand the advantage of waiting, not everyone plans to delay Social Security.
In the Schroders Retirement Survey, 74% of respondents said they know delaying Social Security increases monthly benefits, but still expect to claim early.
Many said they need the money (39%), worry Social Security could run out of funds (38%) or want access to the money as soon as possible (36%).
Final Take To GO
Delayed Social Security credits can increase monthly retirement income for people who are able to wait before claiming benefits. But the right timing depends on personal finances, health and how long someone expects to work.
Before deciding, retirees may want to review their estimated benefits through their Social Security account to see how payments change depending on when they claim.
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