Many retirees are looking for ways to increase their monthly retirement income to keep up with rising costs of living. If you’re currently receiving around $1,600 per month from Social Security, there is one simple action you can take that may help boost your payments to $2,000 per month. In this article, we’ll explore how to achieve that increase and the benefits of taking this step.

Maximize Your Social Security Benefits: The Power of Delaying Your Claim

The key action to increasing your retirement check is delaying your Social Security benefits. By waiting to claim your benefits past your full retirement age (FRA), you can significantly increase the amount you receive each month.

Your full retirement age (FRA) is determined by your birth year. For individuals born between 1943 and 1954, FRA is 66. If you were born after that, your FRA will be slightly higher. While you can begin claiming Social Security at age 62, doing so will result in a permanent reduction in your benefits. Conversely, if you can afford to wait, delaying your claim until age 70 will result in a higher monthly check, thanks to “delayed retirement credits.”

Understanding Delayed Retirement Credits

For each year you delay claiming Social Security past your full retirement age, you earn delayed retirement credits. These credits increase your monthly benefit by a specific percentage. For most people, delaying your benefits until age 70 can increase your monthly check by as much as 8% per year.

For example, if your FRA is 66 and you’re eligible for $1,600 per month at that age, waiting until age 70 could boost your payment by 32%. That would bring your monthly check to $2,112, an increase of more than $500 per month.

How Delayed Retirement Affects Your Benefits

Let’s break down the numbers a bit further. Assume you are eligible for $1,600 a month at age 66. Here’s how your monthly check would increase by waiting:

• Age 66: $1,600
• Age 67: $1,728 (8% increase)
• Age 68: $1,856 (16% increase)
• Age 69: $1,984 (24% increase)
• Age 70: $2,112 (32% increase)

As shown, delaying your Social Security benefits until age 70 gives you a substantial raise in your retirement check. This is an option worth considering if you’re in good health and can afford to delay taking benefits.

Why Delay Social Security?

In addition to increasing your monthly check, delaying Social Security can also help you avoid the pitfalls of claiming early. Claiming at age 62 results in a permanent reduction in your benefits, meaning you will receive less money for the rest of your life. While it may be tempting to claim early, especially if you’re in financial need, the long-term financial advantage of waiting is hard to ignore.

Furthermore, delaying your claim allows you to continue working without penalty. If you’re able to keep earning income, this can help offset the decision to wait for your full benefits, making it easier to delay your claim until age 70.

Considerations Before Delaying

Before you decide to delay your Social Security benefits, consider the following factors:

• Health: If you have serious health conditions or a family history of shorter life expectancy, claiming earlier might be the right choice.
• Financial Situation: If you need the money now, you may need to claim early, but if you have other sources of retirement income, waiting could be a better option.
• Spouse’s Benefits: If you’re married, delaying your benefits could increase your spouse’s benefits as well.

Conclusion

Increasing your retirement check from $1,600 to $2,000 per month is achievable by delaying your Social Security claim until age 70. This simple action of waiting can provide a significant boost to your monthly income and help ensure financial stability during retirement. If you can afford to wait, it’s a smart strategy that maximizes the benefits you worked hard for throughout your career.

For more details about delaying Social Security, visit SSA – Delaying Benefits.

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