Once you reach full retirement age, you’ve earned the right to collect your full Social Security benefit. For many retirees, that milestone raises a big money question:
Is delaying Social Security worth it after full retirement age, or should you take the income as soon as possible?
The answer depends on your health, finances, and overall retirement strategy. Let’s break down the numbers so you can compare the cost, benefits, and long-term impact on your retirement money.
What Happens If You Delay Social Security After Full Retirement Age?
After full retirement age (which is between 66 and 67, depending on birth year), Social Security benefits grow by about 8% per year for each year you delay—up to age 70.
That increase is permanent and adjusted for inflation.
Example:
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Full retirement age benefit: $2,000/month
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Delay to age 70: about $2,480/month
That’s nearly $6,000 more per year for life.
Why Retirees Consider Delaying After Age 65
After age 65, many retirees are healthier, living longer, and thinking more about longevity risk—the chance of outliving their money.
Delaying Social Security can:
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Increase guaranteed lifetime income
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Provide inflation-protected income
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Reduce reliance on investments later in life
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Offer higher survivor benefits for a spouse
For people worried about running out of money, this can be appealing.
The “Cost” of Delaying Social Security
While there’s no direct fee, delaying does have an opportunity cost.
What You Give Up by Delaying
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Several years of Social Security payments
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Potential need to use savings or investments
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Less cash flow early in retirement
If you delay from age 67 to 70, you’re giving up up to three years of benefits—often $70,000 to $100,000 or more.
That’s the real cost to compare.
Is Delaying Social Security Worth It Financially?
Whether it’s worth it depends on how long you expect to live and your overall financial picture.
Delaying May Be Worth It If:
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You expect to live into your late 80s or beyond
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You have other income or savings to cover early retirement years
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You want higher guaranteed income later in life
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You’re the higher-earning spouse
In these cases, delaying can function like a powerful, inflation-protected investment.
Delaying May NOT Be Worth It If:
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You need the money now
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You have health concerns or shorter life expectancy
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You lack sufficient savings to bridge the gap
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You prefer flexibility over guaranteed income
Taking benefits earlier can provide peace of mind and reduce financial stress.
Delaying Social Security vs Other Retirement Income Options: How to Compare
Social Security vs Investment Withdrawals
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Delaying: Higher guaranteed income later
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Investments: Market risk but more flexibility
Social Security vs Annuities
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Social Security: Inflation-adjusted, government-backed
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Annuities: Guaranteed income, but with fees and no COLA unless purchased
Many financial planners view delaying Social Security as one of the best “investments” available—if you can afford it.
Impact on Taxes and Retirement Finance Planning
Higher Social Security benefits can:
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Increase taxable income later
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Reduce required withdrawals from retirement accounts
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Improve long-term cash flow stability
Strategically delaying can also help manage Required Minimum Distributions (RMDs) and reduce investment risk later in retirement.
What About Break-Even Age?
The “break-even” age—when total lifetime benefits are higher if you delay—usually falls between 78 and 82.
If you live past that point, delaying typically pays off financially.
Final Verdict: Is Delaying Social Security Worth It After Full Retirement Age?
Delaying Social Security can be worth it after full retirement age, especially for retirees who:
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Are in good health
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Have sufficient savings or income
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Want higher, guaranteed income later in life
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Are planning for longevity and spousal security
For others, taking benefits earlier may be the better money choice.
The key is to compare your health, income needs, and investment strategy—not just the headline benefit increase.
When used wisely, delaying Social Security can be one of the smartest finance decisions in retirement—but it’s not right for everyone.
