Benefits grow by 5% to 7% each year you delay starting between age 62 and your full retirement age, which is between 66 and 67, depending on the year you were born.
For millions of American who qualify for Social Security, the current crisis is “one and done.” They’ve decided they are not going to wait. They’re going to retire and take Social Security now.
In the example in the article, a 65-year-old who is slated to receive $12,000 a year from Social Security could, by waiting until 66 to sign up for benefits, get $12,860 a year instead. By comparison, it would cost quite a bit more – about $13,500 – to buy an equivalent, inflation-adjusted annuity in the private insurance market that pays that additional $860 a year.
Few issues unite millennials like the future of Social Security. Overwhelmingly, they’re convinced it doesn’t have one.