For each month your filing is delayed beyond FRA, your benefit increases 2/3 of 1%. That amounts to an 8% raise on an annual basis.
Once you turn 70, you can no longer grow your benefit, so there’s no sense in delaying your filing beyond that point. But if your FRA is 67 and you hold off on filing until 70, your benefits will be 24% higher.
2. Coordinate with your spouse for instant cash and a boosted benefit
If you and your spouse are each entitled to Social Security, you have a solid opportunity to capitalize. We just learned that delaying your filing will result in a higher payday. But waiting on those benefits could mean having to put off retirement or postpone other goals, like travel.
A better bet, if you’re dealing with two sets of benefits, may be to have one spouse claim Social Security at FRA or even before, and have the other spouse delay filing as long as possible. If you go this route, you’ll grow one benefit so that it pays more for life, while the other benefit will serve as an immediate income source.
3. Work more than 35 years
The monthly Social Security benefit you’re entitled to is based on your earnings during your 35 most profitable years in the workforce. But you can raise your benefit by working more than 35 years.