A Motley Fool explainer says people turning 67 should weigh when to claim Social Security, whether to keep working and how benefits are calculated. Waiting until 70 can raise monthly payments, but means giving up as much as three years of checks.
The article says Social Security can be claimed from 62; full retirement age is 66 to 67 for people born before 1960 and 67 for those born in 1960 or later. It says delaying a claim from 67 to 70 boosts benefits by roughly 8% a year, trading higher future payments for up to three years of missed checks.
The article says the Social Security Administration uses a worker’s 35 highest-earning years, adjusted for inflation, and a progressive formula to calculate benefits. It also says people can earn any amount at 67 without benefits being withheld; before 67, earnings above annual limits can temporarily reduce benefits. Claiming decisions can affect a spouse’s spousal benefits and the money available after either spouse dies.
