Financial Education Center

Say you don't want to stop working when you reach full retirement age, or you don't need the money quite yet. You can delay receiving benefits until you reach age 70. Depending upon when you were born, your Social Security benefit will be increased by a percentage factor ranging up to 8%, for each year you postpone collecting benefits, up to age 70. Your Social Security benefit could also possibly increase if your average adjusted earnings increase. Look at the table below for Social Security Late Retirement Factors.

Benefit Increase For Each Year Retirement is Postponed (until Age 70)

If you were born between 1943 and 1954 your full retirement age is 66

If you start receiving benefits at age 66 you get 100 percent of your monthly benefit. If you delay receiving retirement benefits until after your full retirement age, your monthly benefit continues to increase.

The chart below explains how delayed retirement affects your benefit. The increase is based on your date of birth and the number of months you delay the start of your retirement benefits. If you start receiving retirement benefits at age:

• 67, you'll get 108 percent of the monthly benefit because you delayed getting benefits for 12 months.
• 70, you'll get 132 percent of the monthly benefit because you delayed getting benefits for 48 months.

When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits.

If you decide to delay your retirement, be sure to sign up for Medicare at age 65. In some circumstances, medical insurance costs more if you delay applying for it.

Other Considerations If You Continue Working

• Your retirement investments will have more time to grow.
• You will have earned income over a longer period and will be able to make 401(k) contributions.
• You will have earned income over a longer period and will be able to make contributions to a traditional IRA until you are age 70, or to a Roth IRA at any time you have earned income.
• You may continue to have medical benefits provided to you. And,
• There's often a psychological benefit to working.

Other Considerations If You Continue Working

• Your retirement investments will have more time to grow.
• You will have earned income over a longer period and will be able to make 401(k) contributions.
• You will have earned income over a longer period and will be able to make contributions to a traditional IRA until you are age 70, or to a Roth IRA at any time you have earned income.
• You may continue to have medical benefits provided to you. And,
• There's often a psychological benefit to working.