I just turned age 67 and now have earned a 8% increase to the monthly amount of my social security benefit that I am now entitled to. By waiting just one year to start my benefits, I can now get a monthly check that will be 8% more than it would have been if I had started my benefits at my full retirement age of 66.
For example, if my expected benefit at full retirement age 66 would have been $2,000 per month, now by waiting until age 67 I am now eligible for $2,160 or $160 more per month for life.
Get More Social Security By Waiting
Now I have not yet applied for my social benefits so the longer I wait up until age 70 when it no longer will pay to wait, the more I will get. Each year my social security benefits will increase by another 8%! So in the example above if I wait for another year until I am age 68, then $2,160 X 8% = $173 increase increasing the monthly benefit to $2,333. So by waiting two years past the full retirement age of 66, I would gain $333 extra every month.
You gain 8% more every year you wait to draw your social security benefit all the way up to age 70 when it stops increasing. If you wait until age 70, your monthly social security benefit will be about 32% more than it would have been at age 66. So that is why I am planning on waiting until to age 70 start my social security benefits. Only three more years to go!
Get Paid While You Wait To Draw Your Social Security.
A year ago when I turned age 66, I found out I could draw on my wife’s social security while I wait until age 70 to draw on mine. Since my wife and I are the same age and she has started drawing her social security, I can draw on her social security under the spousal benefit. It does not affect her at all and does not affect my account either. It the meantime I get a monthly social security payment based on the amount she is getting at her full retirement age.
After you reach full retirement age, you can choose to receive only the spousal benefit and delay receiving your retirement benefits until a later date, allowing you to receive a higher benefit later based on the effect of delayed retirement credits in your own account. More here on Spousal Benefits.
This is working so well for me and my wife I thought I would share it. This may not be the right thing for you. It will not work for some. It works for us because we are the same age and we can afford to take only her benefit now and mine later.
One more benefit of waiting to start drawing on my social security account and letting it increase is that should I die, my wife will then be able to draw my higher amount social security benefit. Upon my death, she can switch from her benefit which is lower since she started drawing at age 62, and switch over to draw the full amount I have earned in my account at the time of death. This is kind of like a mini life insurance policy.