What Happens If You Delay Claiming Social Security Benefits?

July 10, 2025

When you start planning for retirement, Social Security is often one of the first things you’ll look at. You’ve spent years paying into the system, and now it’s time to think about how you’ll use those benefits. But here’s where it gets tricky: claiming Social Security at 62 means you can start getting monthly payments right away, while waiting can lead to a bigger benefit check down the line.

This isn’t just about numbers. It’s about the kind of retirement you want. Do you need the income sooner, or do you want to lock in a larger payment for the long haul? The Social Security Administration gives you options, but the choice isn’t simple. Your health, work situation, and even your family’s needs can all play a part in your decision.

Many people wonder if there’s a clear answer or a strategy that works for everyone. The reality is, the right move comes down to your goals, your financial picture, and how you see your retirement years unfolding. As you read on, you’ll get a closer look at what changes when you delay your Social Security claim, how much your benefits can grow, and what to watch for if you’re considering waiting.

How Social Security Payouts Work

You’re eyeing retirement, but there’s a big question on your mind—should you claim Social Security as soon as you can, or does it make sense to wait? It’s not a small decision. The timing can shape your cash flow for decades. Maybe friends or family have opinions, but the answer is personal.

There’s a “full retirement age” (FRA) set by the Social Security Administration—currently between 66 and 67 for most folks, depending on your birth year. You can claim benefits as early as 62, but the check gets reduced. Wait until your FRA, and you get your full amount. These rules give you flexibility, but they also make the decision a little more complex.

Before you decide when to claim, it’s important to understand how your Social Security benefit is calculated. The numbers might look complicated at first, but breaking them down helps you see how your choices impact your monthly payment.

1. The Basics: Your 35 Highest-Earning Years

Social Security takes your 35 years of highest earnings—not just the last 35, but the years when you earned the most. If you worked fewer than 35 years, zeros are factored in for the missing years, which lowers your benefit.

Your earnings are indexed for inflation, meaning what you made years ago is adjusted to reflect today’s dollars. This gives a more accurate picture of your true earnings over time.

2. Average Indexed Monthly Earnings (AIME)

Your highest 35 years’ worth of income is divided by 420 months (35 years x 12 months) to get your Average Indexed Monthly Earnings (AIME). Here’s a simplified formula:

AIME = (Total indexed earnings from highest 35 years) / 420

Let’s say you worked for many years, and Social Security looks at your 35 highest-earning years (with each year’s earnings adjusted for inflation). Imagine those 35 years add up to a total of $2,100,000.

Step 1: Add up your highest 35 years of indexed earnings.

• Example: $2,100,000

Step 2: Divide that total by 420 months (which is 35 years x 12 months).

So, the math would look like this:

AIME = Total indexed earnings from highest 35 years / 420

AIME = $2,100,000 / 420

AIME = $5,000

Your Average Indexed Monthly Earnings (AIME) is $5,000.

This $5,000 figure is the starting point for calculating your Social Security benefit. The Social Security Administration takes this number and plugs it into their formula with the bend points to figure out your monthly payment at full retirement age.

3. The Primary Insurance Amount (PIA)

Once you have your AIME, the Social Security Administration uses a formula with “bend points” to determine your Primary Insurance Amount (PIA). The PIA is the monthly benefit you’d receive at your full retirement age (FRA).

2024 Example Bend Points

(These change a little every year with inflation.)

• 90% of the first $1,174 of your AIME
  
  
• 32% of AIME between $1,174 and $7,078
  
  
• 15% of AIME above $7,078

PIA Formula Example (2024):

Let’s say your AIME is $6,000:

• 90% of $1,174 = $1,056.60
  
  
• 32% of ($6,000 – $1,174) = 32% of $4,826 = $1,544.32
  
  
• 15% of amount above $7,078 (not applicable here, since $6,000 < $7,078)
  
  

Total PIA: $1,056.60 + $1,544.32 = $2,600.92

So, if your AIME is $6,000, your benefit at full retirement age would be about $2,601 per month.

Source: SSA

4. Social Security Monthly Benefit by Claiming Age

Let’s say your full retirement age is 67 and your benefit at FRA is $2,000.

Your monthly Social Security check depends on how much you earned, how many years you worked, and the age when you claim. The earlier you claim, the less you’ll get each month. The longer you wait, up to age 70, the bigger your monthly benefit becomes.

Delaying Your Social Security Claim: What Happens?

Delaying your Social Security claim can have a ripple effect on your entire retirement plan. Let’s break down the specific outcomes, considerations, and lesser-known facts about waiting to claim.

Monthly Benefit Increases (Delayed Retirement Credits)

If you wait to claim Social Security after your full retirement age, your benefit doesn’t just sit there—it grows. This growth happens through something called “delayed retirement credits.” For every year you hold off, your monthly benefit increases by about 8%. This is not a one-time boost; it’s built into every check you receive for the rest of your life. Even waiting just a few months past your FRA means a higher payout, and the difference can be substantial when you look at the big picture.

Example:

Say your FRA is 67 and your benefit at that age would be $2,000 per month.

• If you claim at 68: about $2,160 per month
  
  
• At 69: about $2,320 per month
  
  
• Wait until 70: about $2,480 per month

That extra $480 per month for as long as you live can really add up, especially as expenses shift with age.

Age 70: The Upper Limit

There’s no reason to wait past age 70 to start Social Security. The delayed retirement credits stop at that point—your benefit maxes out, and you won’t get a bigger check by holding off longer. If you don’t claim by 70, you’re basically leaving money on the table.

Tip: If you reach 70 and haven’t filed, claim as soon as possible. Benefits don’t grow any further, and you won’t get back pay for months you waited after 70.

Early Claiming: Permanent Reduction

On the flip side, if you choose to claim before your FRA, your monthly benefit will be reduced for life. The earlier you claim, the smaller your check. For example, if your FRA is 67 and you claim at 62, your benefit is about 70% of what it would have been at FRA—a permanent 30% reduction.

Why it matters: That reduction doesn’t just affect your monthly income. It also impacts spousal and survivor benefits, since those are based on your claimed amount. Smaller checks can be tougher to stretch, especially with rising costs.

The Break-Even Point: Will You Come Out Ahead?

When deciding whether to delay, it helps to look at the break-even point. This is the age when the total amount you’ve collected from delaying overtakes what you would have received if you’d started early.

Here’s how it works:

• Claim at 62: Smaller checks, more of them
  
  
• Claim at 67: Larger checks, fewer of them
  
  
• If you live past your break-even age (typically around 78–80), waiting often means you’ll receive more from Social Security over your lifetime
  
  

This calculation can be a game changer, especially if longevity runs in your family or you’re in good health.

Longevity and Health: A Personal Calculation

Your health and life expectancy should be front and center in your decision. If you’re in good health and your family tends to live into their 80s or 90s, holding off can pay off in the long run. On the other hand, if your health is uncertain, or if you need the cash flow earlier to meet expenses, claiming sooner might be the practical choice.

Ask yourself:

• Do you expect to live well into your 80s or 90s?
  
  
• Would a higher monthly benefit later be more valuable for you (or your spouse) than starting smaller payments earlier?

Working While Delaying: More Time to Grow Your Earnings

If you’re still working after your FRA, you can both delay claiming and possibly improve your benefit even more. That’s because Social Security recalculates your benefit every year you have higher earnings. If your current work years are among your 35 highest-earning years, they’ll replace lower-earning years in your calculation, bumping up your average indexed monthly earnings (AIME)—and ultimately your benefit.

Real world scenario: Someone who keeps earning a good income into their late 60s can see their future Social Security payment increase—not just from delayed credits, but from those stronger earning years.

Spousal and Survivor Benefits

Delaying can also mean more for your spouse, especially if they might outlive you. When you delay and boost your benefit, you’re also increasing the amount available for spousal and survivor benefits. This can help provide extra financial stability for your partner down the line.

Key point:

• Your spouse can receive a higher survivor benefit if you delayed claiming and passed away after FRA.
  
  
• This can be a crucial consideration for couples with an age gap or a spouse with little to no earnings history.

COLA and Cost of Living

Social Security benefits are adjusted each year for inflation through a Cost-of-Living Adjustment (COLA). When you delay, those adjustments are applied to your higher monthly amount, not the original lower figure. This means your income is better protected against rising prices.

Real Numbers: How Waiting Impacts Your Monthly Payment

It’s one thing to talk about percentages and increases, but real dollar amounts can make the impact crystal clear. Here’s what waiting to claim Social Security can look like, using numbers that fit many people’s situations.

Let’s put this in perspective. Say your full retirement age is 67 and your monthly benefit at FRA is $2,000.

• Claim at 62: You get about $1,400 a month.
  
  
• Claim at 67: You get $2,000 a month.
  
  
• Claim at 70: You get around $2,480 a month.

The extra $1,000 per month (or more) over the years really adds up, especially if you live a long life.

Example Scenario: Monthly Benefit at Different Claiming Ages

Let’s assume your full retirement age (FRA) is 67, and your calculated monthly benefit at that age is $2,000.

Here’s how the monthly payment changes depending on when you start:

• Claim at age 62: You’d receive $1,400 per month—that’s 70% of your full retirement benefit. This is $600 less every month compared to waiting until full retirement age.
• Claim at age 65: Your monthly check would be about $1,733—86.6% of your full benefit. That’s $267 less each month compared to claiming at 67.
• Claim at age 67 (full retirement age): Your benefit is $2,000 per month—the full amount you’ve earned based on your work history and the Social Security formula.
• Claim at age 70: Your monthly benefit would be $2,480—124% of your full benefit. That’s $480 more each month compared to claiming at 67.

If you claim at 62, your benefit is 30% lower than at full retirement age. If you hold off until 70, your check is 24% higher each month.

Cumulative Impact Over Time

Let’s look at what these monthly differences could mean over the years:

• If you start at 62: $1,400 x 12 = $16,800 per year
  
  
• At 67: $2,000 x 12 = $24,000 per year
  
  
• At 70: $2,480 x 12 = $29,760 per year
  
  

That’s a difference of over $1,000 more per month (or nearly $13,000 per year) if you wait from 62 to 70. Over 10 years, that adds up to $130,000 more in lifetime benefits, assuming you live long enough to see those payments.

Lifetime Break-Even Example

Suppose you’re comparing claiming at 62 versus 70. You’ll get more checks if you claim early, but they’ll be smaller. Waiting means fewer checks, but at a higher rate. The break-even age—where waiting starts to pay off—usually falls between ages 78 and 80.

Simple Example:

• Claim at 62: $1,400 x 96 months (8 years, until 70) = $134,400
• Claim at 70: $2,480 per month moving forward.
• After about 12 years at $2,480/month (age 82), the person who waited will have caught up and surpassed the total payments received by someone who claimed early.

Why These Numbers Matter

Social Security is designed to reward patience. If you expect to live well into your 80s, delaying could mean a much higher total payout over your lifetime. But if you need the money sooner, or if health or other factors are at play, taking benefits earlier could still be the right call.

These are not just numbers—they’re your retirement income. Understanding what waiting means in dollars and cents helps you choose the timing that lines up with your goals, your health, and your needs.

Why Someone Might Wait (or Not Wait)

Delaying isn’t for everyone. If you’re in good health and longevity runs in the family, waiting can be worth it. If you’re still working, your earnings could reduce your Social Security if you claim before your FRA. There’s also the question of spousal and survivor benefits. Sometimes, waiting can mean more for your partner later on.

Here’s what to think about as you weigh your options:

Reasons to Wait

• Longer Life Expectancy: If you’re in good health or your family tends to live well into their 80s or 90s, waiting can pay off. A higher monthly benefit adds up over time, especially if you expect to spend decades in retirement.
  
  
• Still Working: If you’re earning a solid income and haven’t reached full retirement age, Social Security might reduce your payments if you claim early. Delaying avoids this reduction and lets your benefit grow.
  
  
• Bigger Spousal or Survivor Benefits: When you wait to claim, you’re not just boosting your own monthly check. Your spouse could receive a higher survivor benefit down the road, which can be especially important if your partner may outlive you.
  
  
• Stronger Inflation Protection: Waiting means your cost-of-living adjustments (COLA) get applied to a larger base amount, helping your Social Security keep up with rising expenses.

Reasons to Claim Earlier

• Health Concerns: If you face serious health issues or don’t expect a long retirement, it may make sense to start benefits sooner. This helps you get more checks while you’re able to use the money.
  
  
• Need for Income: If your savings or other retirement income sources are limited, taking Social Security early can provide cash flow when you need it most.
  
  
• Uncertainty About Work: If you retire unexpectedly or your job situation changes, claiming early may be necessary—even if it means a smaller monthly payment.

Tax Implications and Other Factors

Don’t forget about taxes. Depending on your other income sources, up to 85% of your Social Security benefit could be taxable. Delaying may help if it lets you manage other taxable withdrawals more efficiently. Also, think about how Social Security fits with your 401(k), IRA, and any pension income.

Social Security and Taxes

Not everyone realizes it, but Social Security benefits can be taxed. Whether you owe taxes on your payments depends on your total income from all sources—like work, withdrawals from retirement accounts (such as a 401(k) or IRA), and any pensions.

• How it works:
   If your combined income (that’s your adjusted gross income, any nontaxable interest, plus half your Social Security) crosses certain thresholds, up to 85% of your Social Security benefit could be taxable.
  
  
• Thresholds to watch:
  
  
  • For individuals, if your combined income is above $25,000
  • For couples filing jointly, above $32,000

Once your income crosses those lines, a portion of your Social Security gets taxed at your marginal rate. The higher your other income, the more of your benefit could be taxed.

Timing Can Help with Tax Planning

Delaying Social Security may help you manage your taxable income. For example, you might use funds from your 401(k) or IRA in the early years of retirement, possibly taking withdrawals at a lower tax rate before you start Social Security. Once you claim, your larger Social Security benefit may be partly taxed, but your other taxable income might have already dropped, balancing things out.

Coordinating with Other Retirement Income

Think of Social Security as one piece of a bigger puzzle. The age you claim affects how much you get, but also how you draw from your other savings. Some people choose to spend down taxable accounts first, delay Social Security to boost their future check, and later enjoy a higher income. Others might start Social Security right away and leave their investments untouched for longer.

There’s no single approach that works for everyone. Your plan will depend on your total savings, your spending needs, and your goals for retirement.

What Else to Consider

• Medicare Premiums: Higher income can also mean higher Medicare premiums. If you’re on Medicare, keep an eye on how your income from Social Security and other sources affects your health care costs.
  
  
• Required Minimum Distributions (RMDs): Once you turn 73 (or 75 for some), you’ll have to take required minimum distributions from certain retirement accounts. This can push up your taxable income, potentially affecting the taxability of your Social Security benefit.

Common Mistakes and Misconceptions

A lot of myths and half-truths float around when it comes to Social Security. Clearing these up can help you make a decision based on facts, not fear or rumors.

“If You Wait, You Might Lose Out If You Don’t Live Long Enough”

This is probably the most common concern: What if you delay your benefits and then don’t live long enough to see the payoff?

That’s where the idea of the break-even point comes in. The break-even point is the age where the total amount you collect by waiting catches up with the total you’d have received by starting early.

For many people, this is somewhere around age 78 to 80.

• If you start benefits early, you get more checks, but each one is smaller.
  
  
• If you wait, you get fewer checks—but they’re larger.
  
  
• If you expect to live well past your late seventies, waiting can mean a higher total payout across your retirement.

“Inflation Will Eat Up Any Gains From Waiting”

Another misconception is that inflation will wipe out any benefit you get from delaying Social Security.

Here’s the reality: Social Security includes cost-of-living adjustments (COLA)—annual increases designed to keep up with inflation. Whether you claim early or late, these adjustments get applied to your monthly check, so your benefit can keep pace with rising prices.

Other Misconceptions

• “Social Security Is Going Away Soon, So Claim Now While You Can.”
  While there are discussions about long-term funding, Social Security isn’t disappearing overnight. Policy changes may adjust benefits or taxes, but most professionals expect the program to remain for years to come.
  
  
• “You Can Get a Lump Sum If You Wait.”
  Social Security doesn’t offer a lump sum just for delaying. Once you start, you’ll get monthly payments at the increased rate, but not a big one-time catch-up check.
  
  

• “If You Keep Working, You Can’t Get Social Security.”
  You can work and claim benefits at the same time, but if you’re below your full retirement age, some or all of your Social Security may be withheld, depending on how much you earn. After FRA, there’s no penalty, and your benefit might even increase if your newer earnings are among your highest years.

Key Questions to Ask Before You Decide

Before you hit the button on your application, ask yourself:

• How’s your health?
  
  
• Are you still working?
  
  
• Do you have a spouse who might claim benefits?
  
  
• What other retirement income do you have?
  
  
• Have you run the numbers with a Social Security calculator?

Conclusion

Deciding when to claim Social Security is about more than just picking a number on a chart. It’s a decision that touches almost every part of your retirement plan—your monthly income, your taxes, your spouse’s security, and even how long your savings might last. You’ve seen how waiting to claim can mean a larger monthly check, how health and longevity can tip the scales, and how each choice brings a different set of trade-offs.

There’s no one answer that fits everyone. Some people are better off starting benefits earlier, while others might get more by waiting. The key is understanding how the numbers work, thinking about your own life, and running through the questions that matter most to you—your health, your job, your family, and your goals.

Social Security gives you options. With the right information, you can choose the timing that lines up with the retirement you want. When you’re ready to make your move, talk with someone who can look at your specific situation—whether that’s a trusted advisor or a knowledgeable friend. This is your retirement, your money, and your future. Make the choice that fits you well.