Key Points You can increase your monthly check by delaying when you claim benefits. However, delaying isn't possible for some people for financial reasons. Those claiming spousal benefits are not eligible for delayed retirement credits. The $23,760 Social Security bonus most retirees completely overlook › Many older Americans depend heavily on Social Security to help them have a financially comfortable retirement. While Social Security alone cannot support retirees, it is still an important incom ...

Core Insights - Social Security is a crucial social program in America, with many components that can complicate understanding [1] - Understanding the full retirement age (FRA) is essential for retirees as it significantly impacts their benefits [2] Benefit Calculation - Monthly benefits are determined by the timing of claims relative to the FRA, with the primary insurance amount (PIA) being the base benefit received at FRA [4] - Claiming benefits before the FRA results in a permanent reduction, with a decrease of 5/9 of 1% for the first 36 months and 5/12 of 1% for each additional month [5] - For example, claiming at age 64 (FRA 67) results in a 20% reduction, lowering a $2,000 PIA to $1,600, while claiming at 62 results in a 30% reduction to $1,400 [5] Delayed Benefits - Delaying benefits past the FRA increases the monthly amount by 2/3 of 1% per month, equating to an 8% annual increase until age 70 [6] - Continuing the previous example, delaying benefits until age 70 would increase the amount to $2,480, a 24% increase from the original PIA [6] Spousal Benefits - Claiming spousal benefits is also affected by the timing of the claim relative to the FRA, with reductions of 25/36 of 1% for up to 36 months and 5/12 of 1% for additional months [9] - For a person with an FRA of 67, claiming spousal benefits at 64 results in a 25% reduction, while claiming at 62 results in a 35% reduction [10]

Core Points - The article emphasizes the importance of timing when claiming Social Security benefits, highlighting that making the right decision is crucial for long-term financial well-being Group 1 - Reaching full retirement age (FRA) is a clear indicator that one is ready to claim Social Security, with the FRA set at 67 for those born in 1960 or later [3] - Waiting until FRA to claim Social Security avoids early retirement penalties and allows participation in Medicare, which can lower health insurance costs [4] - Delaying Social Security benefits can lead to increased retirement benefits, with potential increases of up to 24% by waiting until age 70 [5] Group 2 - Having other income sources to cover retirement needs is a sign of readiness to claim Social Security, as many individuals save in IRAs, 401(k) accounts, and other plans [6] - The amount of savings needed varies based on individual circumstances, and consulting a financial advisor is recommended to assess retirement plans [7] Group 3 - A strong desire to pursue retirement dreams indicates readiness to claim Social Security, provided financial conditions are favorable [10]

Summary of Key Points Core Viewpoint - The maximum monthly Social Security benefit is projected to increase from $5,108 in 2025 to approximately $5,245.97 in 2026, highlighting the importance of earning a high salary and delaying benefits claims to maximize retirement income [1][9]. Earnings Requirements - To achieve the maximum Social Security benefit in 2026, individuals must earn a substantial salary, specifically at or above the wage base limit, which is expected to rise from $176,100 in 2025 to $183,600 in 2026 due to inflation [5][9]. - Social Security benefits are calculated based on the average wages from the highest 35 years of earnings, with only income up to the wage base limit being considered for benefits [4][5]. Claiming Strategy - Individuals aiming for the maximum benefit must plan to delay their Social Security claims until age 70, which is eight years after becoming eligible at age 62 [6][7]. - Delaying benefits allows individuals to accumulate delayed retirement credits, which enhance the standard Social Security checks until age 70, maximizing the overall benefit [8][9].