There Is One Situation Where Claiming Social Security Benefits After FRA Almost Never Makes Sense

"Although you can claim Social Security retirement benefits when you are as young as 62, each month you delay will increase your income until age 70. A delay also maximizes your odds of getting the most lifetime income, according to the National Bureau of Economic Research."

"Spousal benefits are claimed on your husband or wife's work record. They can be higher than your retirement benefit if you did not work enough to earn your own retirement benefits or if your spouse earned a lot more than you did over the course of their career."

"Your spousal benefit is worth up to 50% of your husband or wife's standard benefit (the amount they would collect at full retirement age). If you are getting spousal benefits, you should often wait to claim them until your full retirement age to avoid shrinking the amount you are entitled to. But, waiting beyond FRA seldom makes sense because delayed retirement credits that normally reward a post-FRA filing are not available for spousal benefits."

"The most you can collect from spousal benefits is 50% of your husband or wife's standard benefit - and that's true whether you claim benefits at your FRA, at 70, or even older. Since you cannot make your spousal benefit bigger by waiting beyond your FRA, there's no reason for a delay. Putting off your spousal benefits at this point would often just involve leaving money on the table for no reason."

Social Security retirement benefits can be claimed as early as age 62, and delaying increases monthly payments until age 70. Delaying can maximize lifetime income odds. A key exception involves people receiving spousal benefits based on a spouse’s work record. Spousal benefits can be higher than one’s own retirement benefit when personal earnings were limited or when a spouse earned substantially more. Spousal benefits can be worth up to 50% of the spouse’s standard benefit at full retirement age. Waiting beyond full retirement age typically does not increase spousal benefits because delayed retirement credits that apply after full retirement age are not available for spousal benefits. Therefore, delaying after full retirement age often leaves money unclaimed without benefit.

Read at 24/7 Wall St.