What Every 67-Year-Old Should Know About Social Security
Key Points
At 67, you can claim Social Security without reduced benefits.
Waiting could pay off in a serious way.
You get more freedom to earn money while collecting benefits once you turn 67.
- The $23,760 Social Security bonus most retirees completely overlook ›
If your 67th birthday is getting close, it could signal a significant milestone in the context of Social Security. Age 67 is Social Security's full retirement age for anyone born in 1960 or later. So if you'll be turning 67 in 2027 or shortly thereafter, you may be gearing up to file for benefits.
But just because you're reaching 67 doesn't mean you should claim Social Security right away. There's a big upside to waiting you should know about.
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Age 67 isn't necessarily the end of the road
At full retirement age, you're eligible for your monthly Social Security benefit without a reduction. But you should know that for each year you delay your Social Security claim, your benefits get a permanent 8% increase.
Now, this incentive runs out once you turn 70. But if you hold off on claiming Social Security at 67 and instead wait three years, you could give your monthly checks a 24% boost.
Not only might waiting increase your own Social Security benefit, but if you're the higher-earning spouse in your household, it could also lead to a larger survivor benefit. That's something to strongly consider if your spouse is likely to outlive you.
At 67, you get more leeway
Not only can waiting until 67 to claim Social Security ensure that your benefits aren't reduced, but there's another perk. If you're planning to continue working in some capacity while collecting Social Security, you won't be subject to an earnings test if you file at 67.
That means you can earn any amount of money you want without having benefits withheld. For claimants who work prior to full retirement age, there are earnings limits to worry about every year.
Celebrate the big day, but don't rush into Social Security
All told, age 67 is a big one in the context of Social Security. But it doesn't mean that it's the best age to sign up for benefits.
If you don't have much retirement savings, delaying your claim past age 67 could result in boosted checks that make it easier to cover your costs in the long run. And if you have a spouse to protect financially, waiting could also be smart.
Finally, remember that Social Security benefits are eligible for a cost-of-living adjustment, or COLA, each year. The larger your monthly checks are to begin with, the more valuable those COLAs are likely to be, which is another reason to consider waiting even when you're eligible to collect your monthly benefits in full.
The $23,760 Social Security bonus most retirees completely overlook
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