How Much Does Waiting to Claim Raise My Social Security Benefits?

When you're planning for how to support yourself in retirement, chances are good that Social Security benefits will be a big source of funds. While Social Security benefits are designed to replace around 40% of your preretirement income, the specific amount you receive will vary, depending on many factors including what you earned during your career.

One of the most important factors in determining your Social Security benefit amount -- and the one you have the most control over -- is the age at which you claim benefits. You can claim benefits anytime starting at the age of 62, but waiting to claim benefits increases your income. In fact, depending on how long you wait, you might be able to get more than a 75% increase in your monthly benefit compared with claiming at 62.

Waiting can increase your retirement income substantially, because claiming benefits early results in a permanent benefits reduction, while claiming benefits late results in a permanent benefits increase. This guide will explain why waiting can raise your benefits and will also help you determine if waiting is the best course of action in your situation.

Quelle Fool.com