The age you start receiving Social Security retirement benefits permanently impacts your monthly payment amount. Claiming earlier than your full retirement age will reduce your benefit, while delaying past your full retirement age can increase it.
Your Social Security benefit amount is directly tied to the age you choose to begin receiving it. You can start benefits as early as age 62, but each month you claim before your full retirement age (FRA) results in a permanent reduction of your monthly payment. Conversely, delaying benefits beyond your FRA, up to age 70, earns delayed retirement credits that permanently increase your monthly benefit amount.
Social Security rules and benefit amounts can change, so it is important to verify current information with the official Social Security Administration.
How do delayed retirement credits increase my Social Security benefit?
Delayed retirement credits (DRCs) are an incentive to postpone claiming Social Security benefits beyond your full retirement age (FRA). For each month you delay claiming after your FRA, up to age 70, you earn DRCs that permanently increase your monthly benefit. The credit typically amounts to about 8% per year for those born between 1943 and 1954. For example, if your FRA is 66 and you delay until age 70, you could receive a benefit that is approximately 32% higher than if you had claimed at 66. These credits stop accumulating at age 70.