How Delaying Social Security 3 Years Could Add 24% to Your Monthly Checks

Delaying Social Security beyond your full retirement age (FRA) — 67 for most — until you qualify for your maximum benefit at 70 will add 24% to your checks, but it’s important to understand the pros and cons of this move before deciding whether it’s right for you. Delaying Social Security also means receiving fewer years of checks, and that’s a dealbreaker for some.

The right time to claim Social Security often comes down to your financial situation and your life expectancy. Here’s how to weigh these factors when deciding whether it makes sense to delay your Social Security application from age 67 to 70.

The Social Security benefit you qualify for at your FRA is known as your primary insurance amount (PIA). The government calculates your PIA first, then adjusts it up or down to determine your actual Social Security benefit. Claiming before your FRA reduces your PIA by up to 30%, while delaying Social Security beyond your FRA grows your PIA by 2/3 of 1% per month, or 8% per year.

Delaying Social Security until you qualify for your maximum checks at 70 could result in a larger lifetime benefit if you expect to have an average or above-average life expectancy. If you expect to have a short life expectancy, claiming benefits earlier might be more advantageous.

Sometimes, you may have no choice but to claim Social Security early because you need your checks to cover your bills. That’s OK. Signing up at age 67 or even earlier could be the smart move if it keeps you out of debt, even if it means settling for a smaller lifetime benefit.

A middle ground — claiming Social Security at some point between age 67 and 70 — could also be a smart strategy if you want some of the financial gain that comes from delaying your application without the long wait for your benefits. It doesn’t hurt to explore the pros and cons of a few Social Security claiming ages before you decide which one is best for you.