When I was a kid, I used to love pressing pause. It didn’t matter what I was doing whether playing my favorite video game, watching a movie, even just pausing a song on my cassette player. There was something about that moment of stillness, of knowing I could stop and start whenever I wanted, that felt powerful. I never thought much about it back then, but now I realize how rare it is in life to have that kind of control over time. Most of the time, it feels like life speeds up whether we’re ready or not. Except, it turns out, with Social Security.
The funny thing about retirement is that we spend our whole lives chasing it. We work hard, we save, we dream about how we’ll spend our days when the nine-to-five grind is finally behind us. But when the time comes, the decisions can feel overwhelming. Do you start collecting your benefits right away, taking the money that’s already yours? Or do you press pause, waiting just a little longer for something better? That’s where delayed retirement credits come in, and like most things worth waiting for, they’re not always simple.
I remember when my dad retired. He was a planner, the kind of person who liked to know the ins and outs of every decision. But even he found Social Security confusing. “It’s not just about the numbers,” he told me one night after dinner. “It’s about figuring out what’s best for your life, what you need now versus what you’ll want later.” At the time, I didn’t really understand what he meant. But now I see how much wisdom was in those words. Retirement isn’t just about making the math work, it’s about building the future you want.
For a lot of people, delayed retirement credits are a way to do just that. They’re an option to press pause, to say, “I’m not ready to collect yet, because I know the wait will be worth it.” And while the idea of waiting might not seem glamorous, the reward, a larger monthly check for the rest of your life, is hard to ignore. But the decision isn’t as easy as pressing a button. It’s tied up in so many things: your health, your savings, your dreams, and even a little faith in what the future holds.
The thing about waiting is that it’s never just about the wait. It’s about what you’re waiting for. Maybe it’s the extra money that will let you travel a little more, or the security of knowing you’ll have enough to cover whatever life throws your way. Or maybe it’s the quiet satisfaction of knowing you made a choice that puts your long-term needs first. Whatever the reason, delayed retirement credits are about giving yourself the best possible chance at a future you can look forward to.
So if you’re staring at your Social Security options and feeling a little lost, take a breath. It’s okay not to have all the answers right away. Life is full of these moments, the kind where you just have to trust that the choices you make today will lead you where you want to go. And maybe, just maybe, waiting will be the best decision you never expected to make.
What Are Delayed Retirement Credits?
Think of Social Security as the steady rhythm of a song you’ve been writing your whole life. Every paycheck, every hour logged, every late night, it all adds up. When you finally decide to play that song, delayed retirement credits can sweeten the tune.
Here’s how it works: If you wait to start collecting Social Security after your full retirement age, your benefit increases. It’s not just a bonus, it’s a permanent raise. For every month you wait, up to age 70, your check gets a little bigger. Over time, that adds up to a lot more financial breathing room.
For example, let’s say your full retirement age is 67. If you start collecting at 70, your benefit could be 24% higher than if you’d started right on time. It’s like the difference between a single scoop of ice cream and a double, with sprinkles.
How Do Delayed Retirement Credits Work?
The Social Security Administration (SSA) calculates your benefits based on your earnings history. The longer you wait after your full retirement age, the more delayed retirement credits you rack up. These credits are essentially a thank-you for waiting and they come with real financial weight.
If you were born between 1943 and 1954, your full retirement age is 66. Delaying benefits until 70 boosts your monthly check by 32%. For those born in 1960 or later, the full retirement age is 67, and delaying benefits until 70 means a 24% increase.
But there’s a catch: You stop earning delayed credits after age 70. There’s no point in waiting beyond that because your benefits won’t get any higher, and you might miss out on enjoying the fruits of your patience.
Why Waiting Might Be Worth It
Delayed retirement credits aren’t just about dollars and cents. They’re about choices, about carving out a future that feels stable and secure. Here’s why waiting might be the right move:
1. A Bigger Benefit for Life
When you wait, you’re not just boosting your check for a few years then you’re locking in that higher amount for the rest of your life. It’s like investing in yourself, only the returns start when you need them most.
2. Planning as a Couple
If you’re married, delaying benefits can be a smart way to look out for each other. The higher earner’s delayed credits can increase the survivor’s benefit, ensuring financial stability for your spouse if you pass away first.
3. Long-Term Gains
The break-even point for delaying benefits, where the larger monthly checks outweigh the smaller number of them you’ll receive, is usually 12 to 14 years after your full retirement age. If you live well into your 80s or 90s, waiting means more money overall.
What Else to Consider
Of course, not everyone can afford to wait. Life isn’t one-size-fits-all, and the right decision depends on where you are and what you need.
- Health and Longevity
If you have health concerns or a shorter life expectancy, taking benefits earlier might make more sense. No one wants to wait for money they might never use. - Immediate Financial Needs
If you’re balancing a tight budget or dipping into savings to make ends meet, waiting might not be an option. That monthly check can feel like a lifeline when you need it most. - Uncertainty About Social Security’s Future
Let’s face it: there’s always talk about Social Security running out of money. While it’s unlikely the program will disappear, if you’re worried about changes to benefits, filing sooner might feel safer.
What About Medicare?
Here’s a detail that catches people off guard: Even if you wait to take Social Security, you’ll want to sign up for Medicare at age 65. Delaying Medicare can lead to penalties or gaps in coverage, and no one needs that kind of headache.
A Real-Life Example
Let’s say your name is Olivia, and you’ve been working since your early 20s. You’ve always been careful, saving what you could while balancing the costs of life like mortgages, kids, a few hard-earned vacations. Your full retirement age is 67, and if you file then, you’ll receive $2,000 a month.
But you’ve done the math, and you can afford to wait. By holding off until 70, your benefit grows to $2,480 a month. That’s an extra $480 every month, for as long as you live. Over 20 years, that adds up to more than $115,000 in additional income.
If Olivia lives past 82½, which is the typical break-even age, she’ll have come out ahead financially. And in her 90s, when healthcare and living expenses might be higher, that extra income will feel like a lifeline.
Final Thoughts
In the end, choosing when to claim Social Security is less about the numbers and more about what works best for your life. Delayed retirement credits offer an opportunity to take a step back, weigh your options, and decide if waiting is worth the reward. For some, the extra income might mean greater peace of mind or the freedom to live more comfortably in retirement. For others, taking benefits earlier could be the right choice, offering stability when it’s needed most. The beauty of this decision lies in its flexibility as there’s no one-size-fits-all answer.
What matters most is understanding your own priorities and goals. Maybe you’re planning for a long and active retirement, or perhaps you’re thinking about what will best support your family in the future.
