Ask the Experts: What happens if I delay collecting Social Security until after full retirement age?
You’ll get a bigger check every month if you delay collecting your Social Security retirement benefit. How much bigger depends on which year you reach full retirement age, and how long you postpone collecting benefits.
For every month you delay collecting benefits (measured from the time you reach full retirement age to the time you begin taking retirement benefits or reach age 70), you’ll automatically receive a delayed retirement credit. This credit will increase your benefit by a certain percentage:
If you were born in 1939 or 1940, your benefit will increase by 7/12 of 1% for each month, or 7% for each year you delay retirement.
If you were born in 1941 or 1942, your benefit will increase by 5/8 of 1% for each month, or 7.5% for each year you delay retirement.
If you were born in 1943 or later, your benefit will increase by 2/3 of 1% for each month, or 8% for each year you delay retirement.
Here’s an example. Let’s say you were born in 1943 and are eligible for a $1,000 monthly benefit when you reach your full retirement age of 66, but you decide to delay collecting Social Security retirement benefits until you turn 70. Because you’ve delayed your benefit for 48 months (4 years), your monthly benefit will be 32% higher at age 70 (4 years x 8%), or $1,320.
In addition, working longer may increase your lifetime earnings, which may result in a higher Social Security retirement benefit. However, delaying retirement isn’t right for everyone, so make your decision carefully after reviewing your retirement income needs.