"Your decision about claiming Social Security can be very complicated. You have an eight-year window when you can start your benefits, but starting at 62 (the earliest age you're allowed) is going to have a very different outcome than starting at 70 (the latest age when it makes sense to claim)."
"Full retirement age, or FRA, is the date when you get your standard benefit or primary insurance amount. So, why not claim then? Sadly, when you delve into the details about optimizing your benefits, you'll likely find that claiming at your FRA isn't all it's cracked up to be."
"The fact is, benefits keep increasing even beyond your FRA. Benefits go up 2/3 of 1% per month for every month you wait to claim retirement checks after FRA. That benefit bump continues to happen until 70, when there's no further advantage to delay and no reason not to claim immediately."
"A 2/3 of 1% monthly benefits increase adds up to an 8% annual increase. If you are scheduled for a $2,000 Social Security check at your full retirement age and you wait three full years to claim it, the 24% increase would bring that monthly payment up to $2,480. An extra $480 every month gives you $5,760 more money per year for life."
Claiming Social Security involves choosing a start age within an eight-year window. Full retirement age (FRA) is the age when the standard benefit amount is available, but claiming at FRA may not maximize lifetime income. FRA depends on birth year, and many people born in 1960 or later must wait until 67. Benefits increase after FRA for each month benefits are delayed, rising by 2/3 of 1% per month until age 70. Delaying from FRA to 70 can produce about an 8% annual increase, which can significantly raise monthly payments and total yearly income. Cost-of-living adjustments further support higher initial benefits.
Read at 24/7 Wall St.
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