Did you know that every year you delay starting Social Security retirement benefits your eventual monthly benefit increases by 8%, in most cases.* So, 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?
If you don’t need Social Security income to live on, starting Social Security benefits still may make sense for you.
There are multiple reasons to delay benefits:
Social Security benefits are not subject to market risk.
The government grants a cost-of-living adjustment (COLA) each year starting 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. If you decide to retire at age 68 instead, you’ll retain the 8% annual increase to date. However, it accrues monthly, so your birthday affects the final amount.
Alternatively, if you start Social Security retirement benefits at age 62, which is the earliest age allowed, your checks will be 27%-30% less than at age 70 if you were born in 1960 or later. Remember, there’s no benefit to putting off benefits after age 70, when your benefit amount is maxed out.
You can get the answers you need, and more, in one place you already know.
Available exclusively for members like you and located at Crane Credit Union, the Crane Investment Services Program offers retirement planning and investment services, along with the advice and information you need to make well informed decisions regarding your financial future.
Whether you’re looking for help with just one specific financial issue today or a reliable source to create a life-long financial plan that addresses all your needs, Crane Investment Services can help you.
Get started on your financial plan. Call 800-692-3274 for your no cost no obligation appointment today.
Crane Investment Services advisors are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), Member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Broker Services, Inc., is a registered broker/dealer in all fifty States of the United States of America.
* Those born prior to 1943 may receive a slightly lower benefit by waiting.