Planning to Delay Social Security? You Need a Backup Plan
In the course of planning for retirement, one of the most crucial decisions you might face is when to sign up for Social Security. If you claim benefits at full retirement age (FRA), which kicks in at 66, 67, or somewhere in between, depending on your year of birth, you won't face a reduction or boost. Rather, you'll get the precise monthly benefit your earnings history renders you eligible for.
That said, you can sign up for Social Security up to five years ahead of FRA, beginning at age 62. For each month you claim benefits ahead of FRA, your benefits get reduced, but you get your money sooner.
On the flip side, for each month you delay Social Security past FRA, your benefits get a boost. In fact, you can hold off on filing all the way up to age 70 and grow your benefits simultaneously. And if you wait that long, you'll end up with a 24% to 32% boost for life, depending on your specific FRA.
Source Fool.com
