Delaying Social Security retirement benefits can significantly increase your monthly checks — sometimes by 24% or more — and provide more lifetime income for retirees. This article explains the 2026 rules for claiming, the benefits of waiting, and how this decision fits into a retirement income plan. We work with retirees and pre-retirees with $500,000–$5 million in assets.
How Social Security Benefits Are Adjusted in 2026
In 2026, Social Security retirement benefits receive a cost-of-living adjustment (COLA) of 2.8%, increasing average monthly payments for retirees. The average benefit will be about $2,071 per month in 2026, up from around $2,015 in 2025, and the maximum benefit for someone who delays until age 70 can exceed $5,200 per month.
A 2.8% COLA helps protect retirees against inflation, but most retirees still find it difficult to keep pace with rising costs, especially for healthcare and housing.
At What Age Can You Claim Social Security?
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Age 62: Earliest eligibility — benefits are permanently reduced compared to later claiming.
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Full Retirement Age (FRA): 67 for anyone born in 1960 or later; benefits at this age are unreduced.
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Age 70: Maximum benefit age — delayed retirement credits stop after age 70.
Because FRA has fully risen to age 67 for newer retirees and stays there under current law, most people born in 1960 or later should plan around age 67 as the baseline for full benefits.
How Waiting Increases Your Benefit
Delayed Retirement Credits (DRCs) boost your monthly benefit by about 8% for each year you delay past FRA up to age 70. This means:
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If your FRA benefit is $2,000 per month, waiting to age 70 could increase it to about $2,480 monthly — roughly a 24% increase.
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These increases last for life and are adjusted annually with COLA.
The idea is simple: claiming later means a smaller number of larger checks, versus a larger number of smaller checks if you claim early.
What Happens if You Claim Early
Claiming at age 62:
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Can result in up to a 30% permanent reduction in monthly benefits compared with claiming at your FRA. You can receive income sooner, but the benefit is smaller for life.
Many people claim early because they need the income, but that choice often costs tens of thousands of dollars over a lifetime compared with waiting if they have the savings cushion to delay.
How Earnings and Work Affect Benefits
If you claim before FRA and continue working:
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The earnings test may temporarily withhold some benefits if your income exceeds the 2026 limits.
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For those under FRA: about $24,480
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In the year you reach FRA: about $65,160
Any withheld benefits are credited back when you reach FRA so they are not permanently lost.
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Should You Always Wait Until Age 70?
Not always — but for many pre-retirees and retirees with healthy life expectancies and sufficient savings, delaying benefits until age 70 can offer the strongest long-term financial outcome. Here’s why:
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Guaranteed higher lifetime income: Waiting adds DRCs up to age 70.
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Protection from longevity risk: Larger lifetime checks help cover decades of retirement. If you are worried that you will live to be 95 or 100 and run out of money, delaying benefits can actually help.
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Coordination with other income: Larger Social Security benefits can reduce the need to draw down other retirement savings in your seventies.
- Survivor Benefit: If you are married and the higher earning spouse, there will be a Survivor’s Benefit if your spouse outlives you. In effect, whichever spouse has the higher benefit, that amount will apply to both lifetimes. So, even if you have poor health, there could be a benefit to delaying to age 70.
However, waiting makes sense only if you:
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Have enough cash flow or savings to bridge the gap
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Are in reasonably good health
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Have not already locked into significant medical or living expenses early in retirement
How to Fit This Into a Retirement Income Plan
Choosing when to claim Social Security is not just a number-crunching exercise — it’s a major retirement decision that interacts with:
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Your overall retirement income strategy
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Roth conversion timing
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Sequence of returns risk
An effective claiming strategy considers all of these rather than isolating Social Security alone. For example, coordinating your Social Security timing with a Roth conversion can reduce your taxes and spread taxable income over years — a key component of a comprehensive retirement plan. You might find our Questions to Ask a Financial Advisor and Who We Help pages helpful when evaluating professional guidance. Read about hiring an advisor vs DIY.
If you’d like a personalized Social Security claiming plan as part of your broader retirement strategy, schedule a conversation with us.
Examples of Claiming Outcomes
Scenario 1 — Claim at Age 62:
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Immediate income, but about 30% lower monthly benefits than claiming later.
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Suitable for retirees needing earlier cash flow and limited savings.
Scenario 2 — Claim at FRA (67):
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Full benefits with no reduction.
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Balances early retirement income with higher long-term benefit.
- If you will be receiving spousal benefits, there are no deferred retirement credits past full retirement age. Claim now! The spousal benefit is equal to one-half of your spouse’s PIA. If this exceeds your own benefit (based on your earnings), then you will receive the spousal benefit.
Scenario 3 — Claim at 70:
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Maximum benefit with roughly 24% more than FRA benefits due to DRCs.
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Often best for healthy retirees with adequate savings to wait.
Frequently Asked Questions
What is full retirement age in 2026?
Your full retirement age (FRA) is age 67 for those born in 1960 or later,
How much can Social Security benefits increase by waiting?
If you delay benefits from 67 to age 70, your monthly benefit may increase by up to about 24% from delayed retirement credits. If you delay from 62 to 70, your monthly benefit will be 77% higher.
Can I work and claim Social Security in 2026?
Yes — but if you claim before FRA and earn above the earnings limits, some benefits may be withheld temporarily before FRA.
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