Should you delay Social Security benefits?

When optimizing your retirement income plan, you must view the Social Security timing decision beyond merely a break-even analysis. From that perspective, most people must live to age 78 or 79 in order to justify delaying the benefits until age 70. Alternatively, I believe Social Security may be viewed as longevity insurance.

What happens if I delay receiving retirement benefits?

If you start receiving benefits at age 66 and 4 months you get 100% of your monthly benefit. If you delay receiving retirement benefits until after your full retirement age, your monthly benefit continues to increase. The chart below explains how delayed retirement affects your benefit.

Can I delay social security if I'm 66 or 67?

However, waiting until you reach your full retirement age, which is typically age 66 or 67, will result in a higher monthly Social Security check. Individuals who postpone benefits until age 70 will receive the largest monthly amount possible. After age 70, there are no further increases for delaying your benefit.