Here’s What You’re Missing Out on If You Delay Claiming Social Security at Retirement Age

We all expect to get Social Security payments someday, but that day never comes in some circumstances. People who contribute to the system but never receive anything in return (known as never beneficiaries) include late-arriving immigrants, infrequent workers, uninsured workers, and those who die. It is not a large percentage of people, only 3.3% of those 60 and older, according to the Social Security Administration (SSA). Still, it is significant enough that we must consider the individuals who choose not to receive their Social Security benefits by delaying or never claiming them.

You Finish Earning Delayed Social Security Retirement Credits at 70:

A popular piece of advice for those approaching retirement is to wait until you reach the age of 70 before receiving retirement benefits. This will allow you to collect 24% more in benefits than if you began collecting on the day you reached your full retirement age of 67 and 32% if you reached your full retirement age of 66. Benefits increase at an annual rate of 8%, but once you reach 70, they stop. Benefits should begin immediately when you reach 70, but if they don’t, you should contact the SSA to confirm that all of the data collected by them is correct and that there are no administrative reasons for you not to receive your

You will receive a bill for future Part B premiums:

Those who choose to postpone their benefits may face a battle. Regardless of whether your benefits are suspended or delayed, you will be responsible for paying any Medicare premiums from your funds. Medicare payments are usually deducted from your Social Security check. Still, if there is no check, the Centers for Medicare & Medicaid Services will bill you for Medicare Part B premiums. Before deciding to increase your advantages by waiting, assess your financial condition. Suppose you are a Supplemental Security Income beneficiary. In that case, rejecting your Social Security check may prevent you from getting this income because it is intended for people who need it the most, and those in need do not reject checks.

You will not have as much money to invest:

Even if your retirement income appears sufficient to cover your expenses, you should consider claiming Social Security benefits. According to the SSA, persons who never claim benefits have higher poverty rates than current and future claimants. Furthermore, receiving monthly payments allows you to invest the funds, potentially increasing their value and ensuring financial stability for you and your family. When benefits are suspended or delayed, no one else, except a divorced spouse, can obtain them on your behalf. The SSA further states, “Any benefits you receive on someone else’s record will be suspended.”