The Power of Delayed Retirement Credits
By working and paying into Social Security, you earn credits that determine your eligibility for benefits. While you can claim as early as age 62, waiting until your full retirement age (FRA) of 67 (for those born in 1960 or later) is encouraged by the SSA. Delaying further past your FRA increases your monthly benefit through Delayed Retirement Credits (DRCs).
DRCs are added for each month you delay past your FRA, up to age 70, resulting in an 8% annual increase. Delaying from an FRA of 67 to 70 yields a 24% cumulative increase. For an FRA of 66, waiting until 70 provides a 32% increase. No further credits are earned after age 70.
How Your Age 70 Benefit is Calculated
Your Social Security benefit is based on your lifetime earnings. The calculation involves several steps:
- Work Duration: You need at least 10 years (40 credits) of work paying Social Security taxes.
- Average Indexed Monthly Earnings (AIME): The SSA uses your 35 highest-earning years, indexed for wage level changes, to calculate your AIME. Years with no earnings count as zeros. Higher earnings later in your career can replace lower-earning years, potentially increasing your AIME.
- Primary Insurance Amount (PIA): Your AIME determines your PIA, the benefit amount you receive at your FRA.
- Delayed Retirement Credits: Your age 70 benefit is your PIA plus accumulated DRCs.
Maximum vs. Average Payouts
Understand the difference between maximum and average benefit figures.
- Maximum Benefit (2025): The maximum at age 70 in 2025 is $5,108 for those with maximum taxable earnings for at least 35 years.
- Average Benefit (all retirees): The overall average monthly check in mid-2025 was around $1,952.
- Average Benefit (age 70): The average for those claiming at age 70 with DRCs was higher, approximately $3,031.98 in 2025.
Comparing Claiming Ages: A Hypothetical Example
| Claiming Age | Relative Monthly Benefit | Key Factor(s) |
|---|---|---|
| Age 62 (Earliest) | Permanently Reduced | Benefit reduced by as much as 30% for those with FRA of 67. |
| Full Retirement Age (FRA) | 100% of Primary Insurance Amount (PIA) | Receives full, unadjusted benefit based on earnings history. |
| Age 70 (Latest) | Up to 132% of PIA (FRA 66) or 124% of PIA (FRA 67) | Receives maximum benefit due to Delayed Retirement Credits. |
Working While Collecting Social Security at 70
At or after your FRA, there are no limits on earnings while receiving full Social Security benefits. Your benefits will not be reduced by work income. Higher earnings later in life can even lead to a recalculation and increase in your benefit amount.
Spousal and Survivor Benefits
Delayed claiming impacts couples. A higher-earning spouse delaying to age 70 increases their own benefit and the potential survivor benefit for their spouse. A surviving spouse can receive 100% of the deceased's benefit, including DRCs. Spousal benefits (while both are living) are limited to 50% of the working spouse's PIA and do not include the DRC increase.
Tax Considerations for Age 70 Benefits
Taxes on Social Security benefits depend on combined income, not age. Combined income includes adjusted gross income, nontaxable interest, and half of your Social Security. For federal taxes in 2025, combined income above $34,000 (single) or $44,000 (joint) can result in up to 85% of benefits being taxable. Some states also tax Social Security income. A higher age-70 benefit combined with other income could lead to a higher tax bracket.
Get a Personal Estimate
The most accurate way to estimate your age 70 benefit is through a "my Social Security" account on the official SSA website. You can view your earnings history and use personalized calculators. General estimates are available via their Benefit Calculators.
Conclusion
Delaying Social Security until age 70 can significantly increase your monthly income through Delayed Retirement Credits, providing a permanent boost to financial security in retirement, especially if you anticipate a long life. Understanding benefit calculations and using SSA resources are key to making an informed decision.
