Does Delaying Social Security Make Sense for You?

Did you know that every year you delay starting Social Security benefits increases your eventual monthly check by 8%, in most cases.* If you get your full retirement benefits at age 66, waiting until you are 70 will increase your monthly benefit by 32%.

Should You Delay Benefits?

Reasons to Delay Benefits:

• Social Security benefits are guaranteed Social Security by the U.S. government. Once your Social Security benefits are locked in, they aren’t subject to market risk.


• The government grants a cost-of-living adjustment (COLA) each year that increases Social Security benefits. Those COLA adjustments start at age 62, and you benefit from them whether or not you claim benefits at the time.


• The 8% credit you can earn each year by waiting is significantly higher than current interest rates. It would be difficult for you to get that kind of return from ordinary investments – and it wouldn’t be guaranteed.

Now or Later

Alternatively, if you start Social Security retirement benefits is age 62, which is the earliest age allowed, your checks will be reduced by 27% — 30% if you were born in 1960 or later.

Don’t forget that if you are taking Social Security and have other income some of your benefits may be taxable.

Deciding when to start taking Social Security retirement benefits is a big decision that cannot be changed, so consult your financial and tax professionals in advance.

*Those born prior to 1943 may receive a slightly lower benefit by waiting. https://www.ssa.gov/planners/retire/delayret.html