Social Security benefits: Why waiting past age 67 may be advantageous

For individuals born in 1960 or later, age 67 represents the full retirement age for Social Security, meaning claimants are eligible for 100% of their intended benefits without reduction. However, delaying claims until age 70 can provide significant financial advantages.

Waiting until age 70 increases monthly benefit payments by approximately 0.66% for every month delayed, resulting in a total 24% increase compared to claiming at 67. Additionally, for higher-earning spouses, delaying benefits can increase the survivor benefits available to a spouse in the event of their death.

Claiming at age 67 also offers flexibility regarding employment. Unlike those who claim before their full retirement age, individuals filing at 67 are not subject to an earnings test, allowing them to earn any amount of income from work without having their Social Security benefits withheld. Other considerations include potential tax implications, as Social Security income may push a claimant into a higher tax bracket if combined with other earnings.