Delaying retirement can increase your Social Security benefits. You can retire as early as age 62 years and receive permanently reduced Social Security benefits. If you delay retirement beyond your full retirement age, post-retirement-age earnings may increase your benefit by increasing your lifetime earnings, especially if your post-retirement-age earnings are higher than those used to originally determine your benefit. In addition, you can delay retirement past your full retirement age and still receive your full Social Security benefit even though you are working. If you also delay receiving Social Security benefits until age 70 years, your benefit will be higher.

To receive Social Security benefits, you must earn 40 credits over your working lifetime, at a maximum of four credits each year. The amount of earnings required for one credit increases slightly each year. Once you have earned 40 credits, your full retirement age depends on the year and month you were born. If you were born before the year 1938, your full retirement age is 65 years. If you were born between 1943 and 1954, your full retirement age is 66 years. If you were born in 1960 or later, your full retirement age is 67 years. Your future Social Security benefit increases by a certain percentage for each month that you choose to not receive benefits between your full retirement age and age 70 years.

The decision to delay retirement to maximize Social Security benefits depends on many factors including the amount of your benefit, your earnings, and your other financial resources and obligations. It also depends on your health, projected longevity, family responsibilities, and your desire to continue working. Increased Social Security benefits that accrue from delaying retirement may be crucial to your finances later in life and can increase future benefit amounts for your family and survivors.