Timing matters when it comes to claiming Social Security. Taking benefits early can offer quicker access to income, but waiting could mean higher monthly payments later on.
What’s right for you depends on your health, income needs, and whether you’re dealing with debt. Here’s how to think through your options.
How Delaying Social Security Affects Your Benefit
Waiting to claim Social Security can lead to bigger monthly checks—but how does that work?
Here’s the short version: If you wait past your full retirement age (usually between 66 and 67, depending on when you were born), your benefit goes up. For every year you wait, you get 8% more per year, up to age 70. These are called delayed retirement credits.
A Simple Example
Let’s say your full retirement age is 67, and your monthly benefit at that age is $2,000.
If you wait one year (until age 68), your benefit goes up by 8%:
$2,000 × 0.08 = $160
New monthly benefit: $2,160
If you wait until age 70 (three years later), it goes up by 24% total:
$2,000 × 0.24 = $480
New monthly benefit: $2,480
So by waiting until 70, you’d get $480 more each month—or $5,760 more per year. Over time, that adds up.
What About Inflation?
Social Security also gives you cost-of-living increases each year to help your check keep up with rising prices. These are called COLAs (Cost-of-Living Adjustments). If you delay and get a higher benefit, that bigger check will also get the COLA increases—so your future raises will be based on a higher starting amount.
When Waiting Might Make Sense
Delaying Social Security isn’t the right choice for everyone, but it could work well in certain situations. Here are a few reasons you might consider waiting.
You’re in Good Health and Expect to Live Longer
The longer you live, the more total money you may get by waiting. If you’re in good health and your family tends to live into their 80s or 90s, delaying benefits could lead to a higher lifetime payout.
You Have Other Income for Now
If you’re still working, or if you have savings, a pension, or other income to cover your expenses, you may not need Social Security right away. That gives you more flexibility to wait and let your future benefit grow.
You Want to Boost Survivor Benefits
If you’re married, delaying your benefit could help your spouse later on. That’s because survivor benefits are based on the amount you were receiving when you passed away. A higher benefit means your spouse could receive more if they outlive you.
When Claiming Sooner May Be Wiser
Sometimes, it makes more sense to start Social Security earlier. Here are a few reasons you might choose not to delay.
You’re in Poor Health or Expect a Shorter Lifespan
If you have a serious health condition or a family history of shorter lifespans, you may not benefit from waiting. Starting benefits sooner could give you more total income if you don’t expect to live into your 80s or 90s.
You Need the Money Now
If you’re no longer working and don’t have enough savings or other income, waiting may not be realistic. Taking Social Security early could help cover your basic needs, even if the monthly amount is lower.
Can Social Security Help If You’re in Debt?
If you’re retired and still managing debt, you’re not alone. Many people use their Social Security benefits to help cover everyday costs like rent, utilities, or groceries. Doing that may free up other income to keep up with debt payments.
Still, Social Security alone may not be enough to handle everything. Here are some things to consider if you’re dealing with debt in retirement:
Set priorities: If your Social Security benefit doesn’t cover all your bills, start by listing which expenses are most essential—like housing or medications. That can help you see what’s left to work with.
Review your budget: Tracking how much comes in and goes out each month could help you spot areas to adjust. Some people use simple tools or free budget worksheets to get a clearer picture.
Check what support may be available: Community programs may help reduce costs for food, utilities, or prescriptions. Free credit counseling services may also offer suggestions based on your income and situation.
Understand how Social Security fits in: While benefits can help you stay current on basic needs, they’re usually limited. If your debt feels unmanageable, it may help to explore professional debt relief solutions.
Social Security isn’t designed to cover every financial challenge, but it may play a role in helping you manage monthly costs while you explore next steps.
Final Thoughts
Deciding when to claim Social Security is a personal choice. Waiting can lead to a higher monthly benefit and greater long-term income, but it only makes sense if you can afford to wait and expect to live long enough to benefit from the delay.
If you’re unsure what’s right for you, it may help to talk with a financial professional. They can walk through your specific situation—your income, savings, health, and goals—to help you make a decision you feel confident about.
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