Why Delaying Social Security Past FRA Could Be the Smartest Money Move Yet

Social Security rules in America have immensely changed over time. While all these rules might seem simple, it is important to keep in check with the SSA and be aware of these rules for maximum benefits. Even though it's widely known that the longer seniors delay claiming Social Security benefits, the higher their monthly payments are. While most Americans can start claiming Social Security at age 62, you’ll receive your full benefit only if you wait until your full retirement age (generally 67). Delaying even further, up to age 70, can increase your monthly benefit and then give you a hefty lump sum. As per The Sun, Full Retirement Age (FRA) was first set up at 65, but then, after legislative changes in 1983, the age was extended as longer life expectancies were expected.  As per the official Social Security website, an average American's full retirement age depends on their birth month and year. For instance, anyone born between 1955 and 1959, FRA is between 66 and 67. Meanwhile, those born in 1957 reached their FRA when they were 66 years and six months old, which began in 2023. Being born one year later in 1958 would mean turning 66 years and eight months old, which would qualify and fall under the Full Retirement Age bracket, which was in 2024. For those born in 1959, the FRA has now increased to 66 years and 10 months old as of May 2025. This rule means that Americans born that year can get FRA benefits between March 2025 and January 2026.

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On average, the monthly FRA benefit is around $4,018, but this varies based on work history and earnings. Furthermore, the increase in the benefits will depend on your pension. Some individuals might see an increase of $1,000 or more each month, while others may get a smaller increase. In addition, those who are getting more money will get mail from the SSA explaining their increase. The SSA will then update all records by November 2025. It’s taking time because many files need to be updated by hand. The SSA stated it’s working quickly to get it done. Consequently, a lot of people keep asking the question of why one must wait till 70 to get the best Social Security benefits. The answer to that, according to Gal Wettstein, a senior research economist at the Centre for Retirement Research at Boston College, is that it gives you the best returns rather than pulling out early and exhausting it eventually.

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“When you just look at averages, you're better off postponing claiming until as late as possible,” he told USA Today. Moreover, those born in 1959 could lose up to 29.17% of their benefits by claiming at 62, according to Pinecrest Lake data. However, despite several heads-ups on FRA and its importance, many Americans are starting to withdraw Social Security as soon as they reach 62 years old.  According to Robert Brokamp, senior adviser at The Motley Fool, and Monique Morrissey, a senior economist at the Economic Policy Institute, there are two important reasons for this move. First, thinking of living a shorter life expectancy, or Americans who took the benefits right away, either didn't expect to live very long or desperately needed the cash due to financial hardship.  "Many people don't have enough savings," Morrissey told USA Today. In addition, concerns about the end of the Social Security funds may also include early claims.  As many of you know, several sources have claimed that the Social Security fund may run out by 2033-34.

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With uncertainty looming, financial advisors urge Americans to build alternative sources of retirement income. Shannon Benton, executive director of the Senior Citizens League, has advised the citizens to start saving properly and maximize contributions to both. 

As of April 2025, some people are seeing higher Social Security payments, thanks to a recent law called the Social Security Fairness Act, signed by former President Joe Biden in January, just before he handed over his papers. Yet, they are still waiting for their Social Security increases, and processing times remain long.

Please feel free to ask questions, and do not hesitate to reach out to the SSA department if you have any questions. Remember, financial security is the new favorite word in today's world.