Full Retirement Age (FRA) is the benchmark at which retirees can claim Social Security benefits without reductions. Depending on birth year, FRA ranges between 66 and 67. Many assume that claiming at the FRA is the optimal choice, but the system includes nuances that can affect payouts. One such nuance is the two-month delay strategy. Understanding FRA is the foundation for maximizing benefits.
The Two-Month Delay Explained
Social Security calculates benefits based on the month you claim, not just your age. By waiting two months beyond FRA, retirees can increase their monthly payments slightly. This occurs because benefits are prorated by the month, not just the year. The two-month delay adds incremental credits that compound over a lifetime. It’s a small adjustment with meaningful impact.
Why Incremental Delays Matter
Each month of delay beyond the FRA adds a fraction of a percent to benefits. While the increase may seem modest, it accumulates over decades. For retirees living into their 80s or 90s, the extra income adds up significantly. Incremental delays also strengthen survivor benefits, ensuring spouses receive higher payments. The importance of monthly credits is often overlooked, but they can be a powerful tool.
Comparing FRA vs. Two-Month Delay
Claiming at the FRA locks in a baseline benefit, but delaying by two months increases it. For example, a retiree with an FRA of 67 who waits until 67 and two months will receive a slightly higher monthly check. Over time, this difference can amount to thousands of dollars. Comparing FRA to a two-month delay highlights the value of patience. Even small delays can yield big rewards.
The Psychological Barrier
Many retirees struggle with the idea of delaying benefits, even by two months. Fear of missing out or concerns about health drive early claiming. Yet the psychological barrier often outweighs the actual financial risk. For healthy retirees, waiting just two months is a manageable compromise. Overcoming this barrier unlocks the benefits of incremental delay.
Impact on Lifetime Income
Lifetime income is the ultimate measure of Social Security strategy. By delaying two months, retirees increase their monthly checks, which compounds over the years. This strategy is especially valuable for those with long life expectancies. Even modest increases improve financial stability in later years. The impact on lifetime income makes the two-month delay a smart move.
Coordinating With Other Income Sources
The two-month delay works best when coordinated with other income sources. Retirees with pensions, savings, or part-time work can afford to wait. Using alternative income during the delay period prevents financial strain. Coordination ensures the strategy strengthens overall retirement planning. Without support, delaying may feel burdensome, but with planning, it becomes practical.
Survivor Benefits Advantage
Delaying benefits also enhances survivor benefits. When one spouse passes away, the survivor receives the higher of the two benefits. By delaying two months, retirees increase the baseline for survivor payments. This provides added security for widows or widowers. Survivor benefits are often overlooked but are critical in planning. The two-month delay strengthens household resilience.
Why This Strategy Is Overlooked
The two-month delay is rarely discussed because most focus on larger delays to age 70. Yet smaller delays are easier to implement and still provide meaningful gains. Many retirees simply claim at FRA without considering monthly increments. The lack of awareness leaves money on the table. Highlighting this strategy helps retirees make smarter choices.
Understanding The Complexities of Social Security
Social Security is complex, and small decisions can have big consequences. The two-month delay at FRA is a simple, overlooked strategy that boosts benefits. It requires minimal sacrifice but delivers long-term rewards. The bigger picture is clear: retirees should consider not just when to claim, but how even small delays affect income. Maximizing benefits is about awareness, patience, and planning.
Have you considered delaying Social Security by two months? Share your thoughts below—it could help others discover this strategy.
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Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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