Social Security is already an integral source of income for many Americans. But with retirement costs continuing to increase and many older adults feeling the pinch, it can be smart to squeeze everything you can out of your benefits.
While there are a few ways to increase your benefit before you file, like working a few more years or increasing your income, there's also a lesser-known option that could help you receive more even after you begin claiming.
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Your age can affect your benefit even after you claim
Ideally, it's best to think long and hard about when you'll file before you begin taking benefits. But sometimes life happens. Perhaps you retired early but then decided to go back to work, for example, or maybe you realized your savings won't go as far as you expected.
The good news is that if you file early and regret it, you have one chance for a redo if you change your mind. You can withdraw your application within 12 months of filing, and you're then free to file again whenever you choose.
Keep in mind, though, that there are some strings attached. You'll need to pay back all of the benefits you've received so far, including any Medicare premiums that were withheld and any other benefits that family members have received based on your work record, such as spousal Social Security.
If you can't afford to pay back the benefits you've already collected or if you've missed the 12-month window, there's another option. Once you reach your full retirement age, you can suspend your benefits up to age 70. You won't receive any payments while your benefits are suspended, but you'll begin receiving larger checks once you take Social Security again.
These moves could boost your payments by hundreds of dollars per month
Nearly 75% of U.S. adults are unaware that they can change their minds after taking benefits, according to a 2024 report from the Nationwide Retirement Institute. If you can pull this move off and delay your benefits by even a year or two, it can have an enormous impact on your monthly checks.
For every month you delay claiming past age 62, you'll receive slightly larger checks. You'll collect 100% of your benefit at your full retirement age, which is 67 for everyone born in 1960 or later. By waiting beyond that age, you can collect a bonus each month in addition to your full benefit.
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The difference between filing at various ages can be massive for many people. Those with a full retirement age of 67 will earn 30% more at that age than if they were to claim at 62, while waiting until 70 would earn you a bonus of 24% on top of your full benefit.
In many cases, this adds up to hundreds of dollars per month. The average retiree receives around $740 more per month at age 70 than at 62, data from the Social Security Administration revealed. Even between ages 62 and 65, the difference in benefits is around $265 per month for the average retiree.
Delaying benefits isn't right for everyone
Waiting a few years to take Social Security can dramatically boost your monthly payments, but it's not the right move for every situation.
Delaying benefits could increase your monthly income, but in theory, your lifetime income should be roughly equal no matter what age you file. If you claim early, you'll receive a reduced benefit but more checks over a lifetime. By waiting to file, you won't collect as many payments in total, but each will be larger.
This assumes you live an average lifespan, however. If you end up living a shorter-than-average lifespan, you could receive more overall by filing early. On the other hand, those who live a much longer-than-average lifespan could come out ahead by delaying until age 70.
Also, finances are only one consideration when choosing what age to take benefits. If you have a healthy nest egg and want to retire in your early 60s, taking Social Security early can provide some extra income and help your savings last longer. Just be aware that the benefit reduction you'll face by filing early is permanent and will last the rest of your life.
There's no right or wrong Social Security strategy, but if you're looking to earn as much as possible each month, delaying benefits is often the way to go. Even if you claim early and regret it, you still have options to increase your monthly payments.
