Does filing at FRA vs 70 really matter if I keep working and replace lower earnings years?

This is actually a great question that many people overlook. The 8% delayed retirement credits are valuable, but you're right to consider the earnings record improvements too. Here's how it works: 1. If you claim at FRA (67), you'll get your full benefit amount with no reduction. 2. For every year you delay past FRA up to age 70, you get an 8% increase (about 24% total) if you wait the full 3 years. 3. Working while collecting doesn't create any benefit reduction after FRA. 4. Replacing lower earnings years can indeed increase your Primary Insurance Amount (PIA), but the impact varies based on your specific earnings history. The catch: The recalculation for additional earnings typically adds 0.5% to 1% per year to your benefit amount - significantly less than the guaranteed 8% for delaying. SSA automatically recalculates annually once you work while receiving benefits.

I tried this EXACT strategy last year! Started my benefits at 67 (my FRA) while still working at my highest salary ever. After a full year of working, my benefit only went up by $27/month from the recalculation. The 8% per year increase would have been about $160/month more if I'd just waited. Big mistake on my part honestly... the break-even point isn't pushed out nearly as much as I thought it would be.

Its not as simple as everyone makes it sound. The 35-year calculation means each new high-earning year only replaces ONE low year out of 35, so the math impact is diluted. And your $40k years might not even be in your lowest 35 depending on your work history. The REAL question is life expectancy + immediate cash needs. If you need $ now or have health concerns, take it at FRA. If you're healthy with family longevity and don't need immediate $, waiting to 70 almost always wins mathematically in the long run.

My sister did this but with a twist - she retired completely at 66 but then went back to work part time at 68 just for supplemental income. SS never told her they were recalculating anything!! She had no idea until she checked her statement online and saw a $43 increase. Better than nothing I guess lol

Something no one has mentioned yet - if you're married, delaying until 70 also increases the potential survivor benefit for your spouse. That's a huge factor! If your spouse might outlive you and would get higher benefits on your record than their own, those extra 3 years of delay could provide them with significantly more income for potentially many years. I've been trying to figure this out for my own situation, and I was getting nowhere trying to call Social Security - constant busy signals, disconnects, and 2+ hour holds. I finally tried a service called Claimyr (claimyr.com) that got me connected to a real agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with ran some calculations specifically for my situation with replacing lower earning years, and in my case, the 8% per year increase from delaying was significantly better than the smaller increases from replacing my lower earning years.

Why not just do BOTH?? Apply for benefits at FRA, suspend them immediately, then work 3 more years and unsuspend at 70. You still get the 8% increases while working and replacing low years AND can file a restricted application for spouse benefits if your married!

ALSO!!! Think about taxes! If you're working AND collecting SS, more of your SS benefits will be taxable. Up to 85% of your benefits could be subject to income tax if your combined income is high enough. This is something I didn't calculate properly when I made my decision.

I HATE these complicated SS rules!!! Ive been trying to figure out my best option for months and every time I think I understand, I learn something new that changes everything. Why cant they make this SIMPLE????? I thought I was being smart by working while collecting but now im not sure!!!!!

To summarize what everyone's discussing: 1. The 8% per year delayed retirement credits (DRCs) almost always outweigh the small benefit increase from replacing lower earning years 2. Each additional high-earning year only replaces 1/35th of your calculation, so the impact is much smaller than the guaranteed 8% increase 3. If you claim at FRA while working, more of your SS benefits may be taxable 4. Survivor benefits for your spouse are increased by delaying The math usually favors waiting until 70 if you don't need the money immediately and have average or better life expectancy. The breakeven point is typically around age 82-83.