Why might someone consider delaying Social Security benefits?

Delaying Social Security benefits can be a strategic choice for individuals looking to maximize their monthly income during retirement. By choosing to postpone their benefits beyond the full retirement age, typically between 66 to 67 years old depending on the birth year, recipients can earn delayed retirement credits. These credits can increase their monthly Social Security benefit by a certain percentage, generally about 8% for each year benefits are delayed until age 70. Therefore, the longer someone waits to claim their benefits, up to age 70, the larger their monthly checks will be, which can provide a more substantial financial cushion in later years of retirement.

This strategy is often beneficial for those who expect to live longer, as the increased payments can result in a greater total lifetime benefit. Moreover, the higher monthly benefit can also increase earnings for surviving spouses if the primary beneficiary passes away, thereby providing additional financial security to their partner.