Delay Social Security, Increase Your Benefits

Here's an example of the benefit of delay in action: You were born in 1954, and as such your FRA is age 66. According to the benefit statement you've received from Social Security, you are eligible for a monthly benefit payment of $2,000 when you reach your FRA (which would be in 2020). If you delayed applying for your benefit until the next year, your monthly benefit payment would be $2,160 per month -- an increase of $1,920 per year. If you delayed until age 68 (two years after FRA), the monthly payment would be increased to $2,320, for an annual increase of $3,840. At age 69, delaying would increase your annual benefit by $5,760 and, at age 70, your monthly payment would be $2,640 for an annual benefit of $31,680 -- $7,680 more than at FRA. This amounts to a 32% increase in your benefit by delaying receipt of the benefit by four years!