While age 65 is considered the “full” retirement age for Social Security benefits and benefits can be collected as young as age 62 in most cases, you wait as long as until age 70 to start receiving benefits. If you do, you’ll get a larger benefit.
For example, if you pass up a chance to receive $1,000 per month at age 65, and wait the full five years, you’ll receive $1,300 per month at age 70. (These numbers exclude cost-of-living adjustments.) In order to defer your benefits, you have to call the Social Security Administration (800-772-1213) and request a delay. Does it make sense to delay? Mathematically, the lines cross at around age 86. That is, if you receive benefits from age 70 to age 87 you’ll wind up with a larger amount than if you had started at 65. The longer you live past 87, the greater the gap will grow.
Thus, if (1) your parents had long lives (or are still living those lives); (2) you’re in good health when you reach 65; and (3) you don’t need the money immediately, it may make sense to wait until age 70 for a fatter benefits check. Additionally, if you are still earning money through employment after age 65, those earnings could increase the benefit, as well. Also, delaying makes sense if you have a younger spouse who didn’t have substantial earnings. After your death, your survivor will get a larger monthly benefit if you deferred taking benefits until age 70.
