The full retirement age is like a finish line: when you reach it, you can collect your full Social Security benefits. For people born in 1960 or later, the full retirement age is increasing to 67 years old. Think of it like training for a marathon – you might need to wait a bit longer to cross that finish line, but the sense of accomplishment (and the benefits) will be worth it! In fact, if you delay receiving your benefits until after your full retirement age, you can earn delayed retirement credits, which can increase your benefits by 8% per year.
For instance, if your full retirement age is 67, but you delay receiving your benefits until age 70, you could earn up to 24% more in benefits per year. That's a significant increase that can make a big difference in your retirement income. To illustrate, let's say your full retirement benefit is $2,000 per month. If you delay receiving your benefits until age 70, your benefits could increase to $2,480 per month. That's an extra $480 per month, or $5,760 per year, to enjoy your golden years.
