Ultimate Guide to Saving: 55 Ways to Save Money Every Day!

By Our Editorial Team | Published June 24, 2020

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Our editorial team verifies all financial and lifestyle information for accuracy and relevance to senior living.

A conceptual clock and growing stack of coins, representing delayed benefits. — A minimalist clock and growing stacks of coins show how waiting can lead to a much larger financial payout.

46. Delay Claiming Social Security Benefits

Though retiring early might sound like a dream come true, actually delaying your Social Security Benefits is a lot better for your finances in the long run.
Typically, American seniors can begin claiming when they turn 62, though there’s been talk about pushing this up a bit as, overall, advances in the medical field help us live longer and stay healthy even as we age. Depending on the year you were born, your full retirement age (FRA) will be between 65 and 67.
If you retire early (when you turn 62) the amount of benefits you’ll receive will be reduced. Waiting until your FRA will give you the ‘usual’ amount of benefits. But waiting until you’re 70 will actually increase your monthly checks.
It works this way because everyone is set out to receive a fixed amount. By claiming early, the system has to ensure the money will last you for longer, depending on how long you live, that’s why the funds get ‘thinned out’.