Wait Until 70 and Your Social Security Benefit Jumps to $2,500 a Month

Core Insights - Starting in 2026, the full retirement age for Social Security will be 67 for individuals born in 1960 or later, marking the final phase of a gradual increase initiated by a 1983 law aimed at strengthening the program's finances [2][8] - Social Security serves as a crucial foundation for retirement income for millions of Americans, with the timing of benefit claims being a significant financial decision that is largely irreversible [3][4] Benefit Claiming Decisions - Claiming Social Security benefits can begin as early as age 62, but doing so results in a permanent reduction of approximately 30% in monthly payments compared to waiting until age 67 [4][8] - For example, an individual entitled to $2,000 monthly at full retirement age would receive only $1,400 if they claim at 62, which can lead to financial strain in later years when healthcare costs typically increase [5][8] Delaying Benefits - Delaying benefits past age 67 can increase monthly payments by about 8% for each year until age 70, potentially raising a $2,000 monthly benefit to nearly $2,500 [6][8] - The decision to delay benefits is particularly advantageous for individuals expecting to live into their 80s or beyond, while those with health concerns or immediate income needs may benefit from claiming early [7]