Each year you delay your Social Security benefits past your full retirement age (up to age 70), you receive an 8% increase in benefits per year. The downside of delaying is that you are giving up payments today, to get higher payments in the future.
Delaying Social Security is beneficial for individuals expecting to live a longer-than-average life as you now receive higher benefits for a longer period of time. So, if you expect to live into your mid-80s or 90s, or are concerned about longevity, the best strategy is typically to defer benefits to age 70 in order to maximize your lifetime payments from Social Security.
|For more news you can use to help guide your financial life, visit our Insights page.|