In the United States, there is no official retirement age, nor is there a specific age at which you should claim Social Security benefits. Many individuals may choose to continue working until they reach age 70 before signing up for Social Security, as this could result in a more generous monthly benefit. This strategy can prove beneficial regardless of whether you are eligible for Social Security’s maximum monthly benefit or not.
When you reach your full retirement age (FRA) of either 66, 67, or somewhere in between, you are entitled to your full monthly Social Security benefit based on your income history. By delaying your Social Security filing beyond your FRA, your monthly benefit increases by 8% each year. This boost is permanent and can provide you with a substantial financial advantage in retirement. However, to receive the maximum monthly benefit of $4,873, you must have worked for 35 years and earned a high wage throughout your career, meeting or exceeding the Social Security wage cap.
For those considering claiming Social Security benefits, waiting until age 70 could significantly pay off in the long run. By delaying your filing and potentially increasing your wages towards the end of your career, you have the opportunity to secure a more comfortable retirement. Even if you are not eligible for the maximum monthly benefit, the financial gains from delaying your filing can still have a positive impact on your retirement finances. It’s crucial to understand the potential advantages of strategic Social Security planning to ensure a secure financial future during your golden years.
