Social Security Questions? Ask a Social Security Expert
Your full retirement age is 66.
If you delay your retirement benefits AFTER your full retirement age - your social security benefits will increase 8% per year,
but eventually - you will receive benefits during shorter period.
That increase will be in effect until your turn 70.
There will not be any increase if you delay after 70.
In additional - as you are working - the SSA will count your earning and will recalculate your benefits every year based on that additional earning.
If you START receiving social security benefits - your benefits will NOT be delayed anymore and there will NOT be any further increase because of delay...
the increase of 8% is in effect ONLY for the period benefits are delayed after the full retirement age.
That is regardless in your are working or not.
Just an illustration example
If your benefits at full retirement age (66) $1000
and you choose to delay your benefits - and start receiving benefits at 67 - your benefits would be $1080
If you start your benefits at age 57 and 6 months - your benefits would be $1120
If you start at 68 - you will get $1160
Your benefits will increase for every month they are delayed after your full retirement age up to 70.
Also the increase is based on your benefits at full retirement age.
In additional to this increase - there will be COLA adjustments and adjustments because you are working (additional earning).
Is that your concern?
Whether you will continue to work or stop working - that would not affect the increase of your benefits as you referred.The 8% increase is based ONLY on when you start your benefits.
If you start benefits at 66 - your benefits will be 8% higher compare to what you get at 66
correspondingly - at 68 - your benefits will be 16% higher compare to what you get at 66.
But where you will work or stop working - that has NO affect on that change in your benefit amount.