Waiting To Claim Social Security Grows Your Check - Unless You’re in This Group

There are a good number of retirees today who are living on just Social Security. And for people in that situation, getting the largest possible benefit is important.

Social Security's average monthly benefit today is about $2,089. By contrast, the maximum benefit the program pays in 2026 is $5,181. But getting that $5,181 requires high lifetime earnings, which is why the maximum Social Security benefit is out of reach for so many retirees.

Even if you don't have a history of high wages, there's a way to get more Social Security each month. But the perk that makes that possible is only available to some beneficiaries and not others.

How Social Security's delayed retirement credits work

All seniors are entitled to their monthly Social Security benefits at full retirement age, or FRA, which is 67 for anyone born in 1960 or later. Waiting beyond FRA to claim Social Security, however, allows some seniors to accumulate delayed retirement credits, which are credits that boost your benefits directly.

Delayed retirement credits are worth roughly ⅔ of 1% per month you hold off on filing for Social Security past FRA. On an annual basis, they can boost your Social Security benefits by 8%. If your FRA is 67 and you claim Social Security at 70, your benefits will get a 24% increase for the rest of your life.

Social Security's delayed retirement credits stop accumulating once you turn 70. If you've ever heard 70 referred to as the latest age to claim Social Security, that's not exactly true. You could claim benefits after 70 if you so choose, but there's no financial incentive to wait past age 70.

Who benefits from delayed retirement credits

Social Security's delayed retirement credits are available to people who are claiming benefits based on their own earnings records. If you're filing for "regular" Social Security benefits, you can accrue these credits by waiting past FRA.

Delayed retirement credits also apply to survivor benefits. If you're the higher earner in your household and pass away, your spouse will generally be entitled to survivor benefits from Social Security equal to the monthly checks you collected. So if you accumulate three years of delayed retirement credits and boost your monthly checks by 24%, your spouse should get that boost as well.

Who misses out on delayed retirement credits

While Social Security's delayed retirement credits are a great tool for boosting benefits, it's important to know that they do not apply to spousal benefits. If you're married or an eligible divorcee, you may be eligible to claim Social Security spousal benefits based on your current or former spouse's record.

If you file for spousal benefits at your own FRA, you'll get 50% of your spouse's FRA benefit. But that's the most you can get. You won't be eligible for delayed retirement credits, so there's no sense in delaying a spousal benefit claim beyond FRA.

For example, let's say your spouse's FRA benefit is $2,000. If they boost that benefit to $2,480 by racking up three years of delayed retirement credits, the most you'll be able to claim in spousal benefit form is $1,000 per month, assuming you wait until your FRA.

How to cope with smaller Social Security checks

While Social Security's delayed retirement credits do a great job of boosting benefits, they don't apply to all benefit types. They're also not necessarily so easy to collect.

Let's say you want to delay your Social Security claim past FRA to score delayed retirement credits. If you're unable to keep working full-time at that point, delaying your claim may not be possible unless you have a lot of savings to fall back on.

That's why it's important to have a strategy to cope with smaller Social Security benefits. If you can't take advantage (or full advantage) of delayed retirement credits, aim to have other income for retirement. That income could come from earnings from a part-time job, money you've saved up, or investments that pay on a regular basis, like dividend stocks and bonds.

Bottom line

Your Social Security benefits may be a big part of your retirement plan. And if you're able to postpone your claim long enough to max out your delayed retirement credits, you could boost your benefits in a meaningful way, thereby alleviating a lot of long-term financial stress.

But it's important to recognize that Social Security's delayed retirement credits do not apply to everyone and aren't always so easy to get. If you're claiming spousal benefits, they're off the table. And if you don't have the ability to keep working or savings to tide yourself over, you may not be able to delay your claim past FRA to get those credits.

Therefore, your retirement income strategy should not necessarily revolve around delayed retirement credits and boosted Social Security checks. You should have a contingency plan in place in case those credits end up being out of reach.

You May Also Like

23 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Save Money and Get Huge Discounts on Everyday Purchases

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal

Become a member now!

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms