Salt Lake City, Utah – Deciding when to claim Social Security benefits can significantly impact your monthly payout in retirement. While there is no official retirement age in the United States, delaying your claim until age 70 could result in a more substantial monthly benefit.
When you reach your full retirement age (FRA), which varies between 66 and 67 depending on your birth year, you are entitled to your full monthly Social Security benefit based on your income history. However, for each year you delay your filing beyond FRA, your monthly benefit increases by 8%, providing a permanent boost to your income.
Filing for Social Security at age 70 can result in the maximum monthly benefit of $4,873, but this requires a 35-year work history with a high income. The Social Security wage cap, which stands at $168,600 this year, determines the maximum earnings on which workers pay Social Security taxes.
Even if you haven’t earned the maximum benefit amount, delaying your Social Security filing until 70 can still result in a substantial monthly payout that can significantly impact your retirement finances. Working longer and increasing your wages in the years leading up to retirement can further boost your benefits.
Ultimately, by strategizing when to claim Social Security benefits and maximizing your income in the years leading up to retirement, you can secure a more comfortable financial future. Making informed decisions about your Social Security benefits is crucial in ensuring financial stability throughout your retirement years.