6 Benefits of Delaying Social Security, Finance Experts Say
Higher Monthly Payments
For each year you delay claiming Social Security beyond your full retirement age (up to age 70), your monthly benefit increases by about 8%
Increased Lifetime Benefits
By delaying Social Security, you can maximize your lifetime benefits, especially if you live longer than average.
Inflation Protection
Social Security benefits are adjusted annually for inflation. By delaying, you lock in higher benefit amounts
Spousal Benefits
If you delay claiming, your spouse may receive a higher survivor benefit if you pass away. This can ensure better financial support for your spouse in the event of your death.
Tax Advantages
Delaying Social Security can reduce the number of years you need to report Social Security income on your tax returns.
Greater Flexibility in Income Planning
Delaying Social Security gives you more flexibility in drawing from other retirement accounts like 401(k)s and IRAs first.
Reduced Need for Withdrawals
With higher Social Security payments, you may not need to rely as much on other retirement savings, such as personal investments or 401(k) accounts
Increased Financial Confidence
Delaying Social Security provides peace of mind knowing you’ll receive a larger, more secure income later in life.