Good News for Retirees – Up to $700 More in Social Security if You Delay Benefits – Here’s How

It is commonly known that in the United States, millions of people rely on Social Security to cover their retirement expenses.

However, a recent survey found that more than half of Americans are unaware that the age at which they choose to begin collecting these benefits has a direct impact on the amount they receive each month.

In some cases, this simple adjustment could increase the monthly payment by as much as $740. Here’s how it works.

Social Security Beneficiaries Could Earn $700 More if They Do This

This may not seem like a big deal, but it will have an important impact on your benefits, as they will be lower if you start receiving benefits at the minimum age of 62.

The system applies a permanent reduction in your income for each month you begin before your full retirement age (FRA), which ranges between 66 and 67 depending on your year of birth. However, if you wait until the age of 70 to begin collecting, your payments will be significantly larger. This wait can result in a 24% to 32% rise, which will make a significant impact on your monthly revenue.

Approximately $1,298 per month might be received by someone who begins collecting benefits at age 62 in 2023. But if they wait until they are 70, they might have to pay $2,038 a month.

The monthly difference would be an extra $740, which is a significant amount. Delaying benefits may be a wise financial move for many people, but it’s not always the smartest course of action. Depending on your unique situation, yes. It may be advisable to wait to maximize your payments if you are in good health or have enough saved.

It might be more sensible to begin payments early, though, if you need the money sooner or would rather enjoy your retirement while you’re still active. By postponing their benefits, 99.4% of seniors may greatly boost their overall income, per a 2022 National Bureau of Economic Research research. Keep in mind that this approach does not consider each individual’s aspirations, which are also crucial.

When will retirees receive their Social Security checks in January?

According to the Social Security payment schedule for 2025, retirees will receive their Social Security checks starting on January 3rd for all those retired workers who claimed benefits before May 1997.

It is important to highlight that these monthly paychecks will already come with the new 2.5% increase from the cost of living adjustment (COLA) that was announced on October 10th. Thanks to this annual increase, more than 64 million retired workers in the United States will have extra money to keep pace with inflation. Besides this first payment, retirees will also receive other payments on the following dates:

How much money will retired Americans earn with the increased Social Security checks?

Considering the new 2.5% COLA increase, retirees will receive new payment amounts as here detailed:

Retirement benefits Social Security checks 2.5% COLA increase Extra income

Keep in mind that if these payment amounts don’t arrive on the scheduled date, wait at least three mailing days before contacting the SSA customer service or visiting your nearest local office. Also, remember you can access your My Social Security Account to learn more about your monthly benefits.