Delayed Retirement | Born between 1943 and 1954 (2024)

FAQs

What is the break even point for delaying Social Security? ›

Figure 1: BREAKING EVEN.

Want Social Security income starting after you turn 62? Fine, but by age 78 and 8 months, waiting until full retirement age will result in more lifetime earnings. If you can hold out until age 70 to begin drawing Social Security, age 82 and 6 months becomes the magic breakeven number.

Social Security retirement benefits are increased by a certain percentage for each month you delay starting your benefits beyond full retirement age. The benefit increase stops when you reach age 70.

You can claim Social Security at age 69 and receive your full retirement age benefit plus three years' worth of delayed retirement credits or you can request a lump sum payout of six months of retroactive benefits.

Delayed Retirement Credits increase your monthly Social Security benefit by a certain percentage for each month you delay taking benefits past your full retirement age, up to age 70. The percentage of the increase depends on your year of birth - it's 8% per year for those born in 1943 or later.

Your life expectancy

Taking Social Security early reduces your benefits, but you'll also receive monthly payments for a longer period of time. On the other hand, taking Social Security later results in fewer checks during your lifetime, but delaying means each check will be larger.

The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67.

What is the disadvantage of late retirement? You will want to have a few years to enjoy retirement before you find yourself dealing with serious health issues. So if you're beginning to have health issues or have concerns because of your family history, delaying retirement could be a mistake.

If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.

Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

Retroactive Benefits

The Retroactive Benefit Option is enticing to some because it can provide a relatively large lump sum payment. Invoking this option entitles you to receive missed monthly benefits retroactively for as far back as six months prior to filing your application with the Social Security Administration.

What is the secret bonus for Social Security? ›

There is no specific “bonus” retirees can collect from the Social Security Administration. For example, you're not eligible to get a $5,000 bonus check on top of your regular benefits just because you worked in a specific career. Social Security doesn't randomly award money to people.

The number of credits does not affect the amount of benefits you receive. We use the number of credits you've earned to determine your eligibility for retirement or disability benefits, Medicare, and your family's eligibility for survivors benefits. We cannot pay benefits to you if you don't have enough credits.

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent. Starting to receive benefits after normal retirement age may result in larger benefits. With delayed retirement credits, a person can receive his or her largest benefit by retiring at age 70.

No. You can't purchase, transfer, or borrow Social Security work credits.

If you wait to take your benefits until after your [full retirement age], Social Security will add an 8 percent delayed retirement credit to your eventual monthly payout each year you hold off, up until age 70. That's a guaranteed return of 8 percent per year (Tucker 2020).

1. You're Planning Your End-of-Life Care. Your Social Security benefits stop paying at your death, so if you die before collecting benefits, you'll have missed out on benefits entirely.

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.