Good things may come to those who wait. That can be true for people who qualify for Social Security in retirement.
If you apply for benefits after reaching your full retirement age, you earn delayed retirement credits. These credits increase your monthly benefit for the rest of your life. Age 70 is the maximum age to earn these credits.
Is waiting the right choice for everyone? Not always. The timing depends on your personal situation and how you view the program’s long-term outlook.
What to Know About Delayed Retirement Credits
Your Social Security retirement benefit is based on your lifetime earnings. The program calculates your average earnings and determines the monthly amount you will receive at your full retirement age.
Full Retirement Age by Birth Year
| Birth Year | Full Retirement Age |
|---|---|
| 1943 to 1954 | 66 |
| 1960 or later | 67 |
For those born between 1955 and 1959, full retirement age increases gradually from 66 to 67.
Claiming Early
You can begin collecting benefits as early as age 62. However, your monthly payment will be permanently reduced.
The reduction depends on how early you file:
- 36 months early: 20 percent reduction1
- 60 months early: 30 percent reduction
The earlier you claim, the smaller your monthly benefit. This reflects the longer period you are expected to receive payments.
Delaying Benefits
If you wait until after your full retirement age, your monthly benefit increases. You will receive fewer total payments over your lifetime, so each payment is larger.
The Social Security Administration adds delayed retirement credits for every month you wait beyond full retirement age, up to age 70.
Weighing The Trade-Off
Delaying benefits is not without risk. If you pass away soon after claiming, you may receive less overall than if you had started earlier.
However, if you live longer than average, the higher monthly amount may result in greater total benefits over time.
How Delayed Retirement Credits Are Calculated
To understand delayed retirement credits, it helps to know how Social Security calculates your retirement benefit. The formula is complex, but it generally uses your highest 35 years of earnings.
Social Security does not rely on the raw dollar amounts you earned. Instead, it uses a process called indexing, which adjusts your past earnings to reflect changes in wages over time.2 If your income increased throughout your career, that growth is factored into your benefit.
The calculation produces your primary insurance amount (PIA), which is the benefit you would receive at full retirement age.
If you claim benefits early, your monthly payment is reduced. Depending on how early you apply, your benefit could be up to 30% lower than your PIA. If you delay claiming past full retirement age, you earn delayed retirement credits, which increase your monthly benefit.
Credits Depend on Your Age
Delayed retirement credits are added for each month you wait past full retirement age. The percentage increase depends on your year of birth.3
| Year of Birth | Annual Increase in Benefit |
|---|---|
| 1933 to 1934 | 5.5% per year |
| 1939 to 1940 | 7% per year |
| 1943 or later | 8% per year |
Credits stop at age 70. There is no additional increase for delaying beyond that age.
How Credits Are Applied
If you delay benefits but start before age 70, some credits may not be included right away.
Example:
- Full retirement age: 67
- Benefits begin at: 69
Your initial benefit includes credits earned from age 67 through the year before your 69th birthday. Any additional credits earned during the year you turn 69 are added the following January.
Estimating Your Benefit
Benefit calculations can seem complex, but the Social Security Administration provides tools to help:
- An online calculator to estimate the impact of delayed credits4
- Calculators where you can enter salary information
- A My Social Security account that provides personalized benefit estimates based on your filing age5,6
Accumulate more credits by delaying your retirement age. Start Your Free Plan
Are Spousal Benefits Affected?
You can increase your own monthly benefit by delaying Social Security up to age 70. However, waiting to file does not increase your spouse’s benefit if it is based on your earnings record. The maximum a spouse can receive is 50 percent of your primary insurance amount (PIA).
Delaying benefits also does not change the maximum family benefit. This is the total amount you and your immediate family members can receive based on your earnings. The family maximum is calculated using your full retirement age benefit, so the age at which you apply does not affect it.
However, delayed retirement credits do increase what a surviving spouse or surviving divorced spouse may receive.7 The Social Security Administration calculates their benefit using your PIA plus any delayed retirement credits earned up to the month of your death.
The Impact of Delaying Your Benefits
How much difference can waiting make? Consider this example.
Someone born on January 15, 1960 reaches full retirement age in 2027. If they claim at 67, they receive $2,000 per month.
If they wait until age 70, they earn delayed retirement credits of 8 percent per year. After three years, their benefit increases by 24 percent, raising their monthly payment to $2,480.
If this person passes away shortly after age 67, claiming earlier would have provided more total income. Around age 82½, the higher monthly benefit makes up for the years of missed payments. After that point, lifetime payments are higher because they delayed. By age 90, they would have received $43,200 more in total, before taxes, than if they had claimed at 67.
Should You Delay Your Benefits?
Waiting to file can increase your monthly income. It may also give you more flexibility in how you draw income from other retirement accounts.
For example, using pretax 401(k) or IRA funds in your 60s may reduce required minimum distributions later. In your 70s, you can shift toward Social Security benefits, of which up to 85 percent may be taxable even at higher income levels.8
However, delaying is not right for everyone. You may decide to claim earlier for several reasons:
- Preventing Debt: If withdrawing from investment accounts feels risky, claiming earlier may reduce the need to borrow. This can help you avoid added financial strain.
- Health Issues: It often takes 12 to 14 years to reach the break-even point. If you have serious health concerns or a family history of shorter life expectancy, you may not benefit from waiting.
- Concerns About The Program’s Future: According to the 2025 Social Security Trustees Report, trust fund reserves are projected depleted through 2034, after which incoming revenue would likely cover about 81% of those benefits if no changes are made.9 If you are concerned about future adjustments, claiming earlier may feel more comfortable.
Filing for Social Security is not a one-time decision. Once you reach age 62, you can apply at any time.
If you delay Social Security past age 65, you will likely still want to enroll in Medicare at 65. Waiting longer could result in delayed coverage and higher costs.
Developing a Retirement Plan
Deciding whether to claim benefits at your full retirement age or later can affect your income in retirement. This choice should be part of a broader retirement strategy that includes other income sources.
Consider the following:
- Your full retirement age versus delaying benefits
- How other income sources fit into your plan
- The tax treatment of each income source
- How taxes may affect the amount you keep
Reviewing how these pieces work together can help you keep more of your assets over time. If you would like guidance, a qualified financial professional can explain the advantages and tradeoffs of delaying benefits and help build a retirement plan that fits your goals.
Final Thoughts
Delayed retirement credits can increase your monthly Social Security income, but the right timing depends on your health and financial goals. Understanding how waiting affects your lifetime benefits can help you make a more informed choice. Reviewing your options within a broader retirement plan can help you select a strategy that fits your needs.
Delayed retirement credits can significantly boost your retirement income. Start Your Free Plan
Sources
- Benefit Reduction for Early Retirement. https://www.ssa.gov/oact/quickcalc/earlyretire.html.
- Social Security Benefits Amounts. https://www.ssa.gov/oact/cola/Benefits.html.
- Delayed Retirement Credits. https://www.ssa.gov/benefits/retirement/planner/delayret.html.
- Early or Late Retirement? https://www.ssa.gov/OACT/quickcalc/early_late.html#calculator.
- Benefit Calculators - Estimate Your Benefit. https://www.ssa.gov/OACT/anypia/index.html.
- Get Your Social Security Statement. https://www.ssa.gov/myaccount/statement.html.
- What are delayed retirement credits and how do they increase my old-age benefit amount? https://www.ssa.gov/OP_Home/cfr20/404/404-0313.htm.
- New Tax Break for Seniors. https://crr.bc.edu/new-tax-break-for-seniors/.
- Social Security Board of Trustees: Projection for Combined Trust Funds One Year Sooner than Last Year. https://www.ssa.gov/news/en/press/releases/2025-06-18.html.
