Retirement and Social Security
Definition
Increases to your Social Security retirement benefit for each month you wait past full retirement age, up to age 70.
What it means
If you were born in 1943 or later and wait to start Social Security retirement benefits after your full retirement age, your benefit grows by two-thirds of 1% for each month you delay, or 8% a year, until age 70. There is no extra increase for waiting beyond 70. The higher amount also raises the survivor benefit a widow or widower may receive later, though spousal benefits do not grow from delayed credits. Delayed credits are added on top of cost-of-living adjustments. Whether delaying pays off depends on health, other income, marital situation and how long you live, and SSA's planners show the effect. You should generally still sign up for Medicare at 65 even if you delay Social Security.
Example
With a full retirement age of 67 and a full benefit of $2,000 a month, starting at 70 raises the benefit by 24% to about $2,480 a month, before cost-of-living adjustments.
Illustrative numbers only. Your situation will differ.