Should I start Social Security immediately after retiring if I'm no longer earning income?
I just retired on April 1st this year and I'm confused about when to start my Social Security benefits. I haven't applied yet because I've always heard delaying increases your benefit amount. But then I noticed something on the SS.gov website that's making me question everything. It says the benefit estimates are "based on your earnings to date and assume you continue to earn the same salary per year until you start your benefits." Well, now my salary is ZERO since I'm fully retired. So if I'm not working anymore, am I actually losing money by waiting to claim? If they're assuming I'm still earning my previous salary ($78,500/year) in their calculations but I'm actually earning nothing, does that mean my monthly SS amount won't actually increase by waiting? It feels like I might be leaving money on the table by delaying. Why do they keep telling us we're better off waiting for a higher monthly amount if the calculation isn't actually increasing once we stop working? Does anyone understand how this really works? Should I have filed for benefits the moment I retired?
15 comments
Join the conversation
Aisha Abdullah
The 8% per year increase for delaying past your Full Retirement Age has nothing to do with your ongoing earnings - it's a guaranteed increase regardless of whether you're working or not. Between age 62 and your FRA, the increase is about 5-6.7% per year. The calculation of your base benefit (PIA - Primary Insurance Amount) is based on your highest 35 years of earnings, already locked in when you stop working. If you have fewer than 35 years of work, then yes, additional work years would help by replacing "zero" years in the calculation. But the delayed retirement credits are completely separate from that and represent a genuine increase even with zero new earnings. You're not leaving money on the table by waiting - you're trading early payments for higher lifetime payments later.
0 coins
Mateo Rodriguez
•Thank you so much for explaining! So even though I'm not working anymore, I'll still get the 8% increase for each year I delay past my FRA? That's a relief. I was really starting to think I'd made a big mistake by not filing immediately after retiring.
0 coins
Ethan Wilson
Everyone told me to wait too but I started taking mine as soon as I retired at 63. Sure the monthly check is smaller but I've already collected for 2 years while my brother who's the same age is still waiting. Do the math!!! It takes like 12 years to break even if you wait. Who knows if we'll even be around that long?!
0 coins
NeonNova
•YES!!!! This is what I keep telling people too. Bird in hand worth two in bush! My financial guy showed me that break-even point is somewhere in my late 70s or early 80s depending on interest rates. No guarantee any of us makes it that far, so I'm enjoying my SS money NOW.
0 coins
Yuki Tanaka
There's something important most people miss about when to claim. If you're married, delaying benefits can significantly increase survivor benefits for your spouse. If you're the higher earner and you delay until 70, your spouse could receive that higher amount for many years after you're gone. The decision isn't just about break-even calculations for yourself. It's also about potentially decades of higher survivor benefits. The 8% per year increase from FRA to 70 is guaranteed regardless of whether you're working or not - it's basically free insurance for your spouse.
0 coins
Mateo Rodriguez
•That's a really good point I hadn't considered. My wife is 5 years younger than me and has a smaller work history, so this might actually matter a lot in our situation.
0 coins
Carmen Diaz
OMG the Social Security website is so confusing!!! I spent like 3 hours trying to figure out the same thing last month and ended up more confused than when I started. I tried calling them and got disconnected FOUR TIMES after waiting over an hour each time. How is anyone supposed to make good decisions with this kind of customer service????
0 coins
Andre Laurent
•I found a service called Claimyr that helped me get through to an actual SSA agent after trying for weeks on my own. You might want to check out their video demo at https://youtu.be/Z-BRbJw3puU to see how it works. I was skeptical but it saved me so much frustration. Their website is claimyr.com - definitely worth it when you need to talk to someone about something as important as when to claim benefits. I had a similar question about how stopping work would affect my benefit amount and really needed a straight answer from SSA.
0 coins
Emily Jackson
i waited till 67 to file and kinda wish i had started at 62 tbh. my brother started at 62 and has been enjoying cruises while im just getting started. depends on your health and family history tho
0 coins
Aisha Abdullah
One other thing to consider: if you have less than 35 years of work history, then additional years of work would increase your benefit because Social Security uses your highest 35 years. Years with zero earnings bring down your average. But if you already have 35+ good earning years, then stopping work won't reduce your already-established PIA (Primary Insurance Amount). The delayed retirement credits (8% per year from FRA to 70) apply regardless of whether you're working or not. This is independent of your earnings record calculation.
0 coins
Mateo Rodriguez
•I worked for 38 years, so I should have enough years in my record. One last question - when the SSA statement shows different benefit amounts at 62, FRA, and 70, are those amounts already taking into account that I'd be not working during those waiting years? Or are they assuming I continue working until the age I claim?
0 coins
Aisha Abdullah
The SSA statement benefit estimates assume you continue working at your current salary until you claim. But with 38 years of work, any additional years would likely only slightly increase your benefit (if your recent earnings are higher than your early career earnings). If you download the detailed earnings statement, you could see which years might be replaced. But with your work history, the delayed retirement credits (8% per year after FRA) would almost certainly be more valuable than working a few more years. For your specific situation, you might want to use the detailed calculator on the SSA website where you can input zero for future earnings, or consult with a financial advisor who specializes in Social Security claiming strategies.
0 coins
Mateo Rodriguez
•Thank you so much. This has been incredibly helpful. I feel much better about my decision to wait now that I understand how it actually works!
0 coins
Ethan Wilson
My neighbor started collecting at age 62 even though she was still working part-time and she got hit with that earnings limit thing where they took back some of her benefits. Make sure you understand that too!!! If you go back to work before your FRA there's a limit to how much you can earn (like $19k or something?) before they reduce your benefit. After FRA there's no earnings limit tho.
0 coins
NeonNova
i got so confused by all the conflicting advice that i just went to my local ss office and had them explain everything. took half a day but worth it. way better than trying to figure it out online.
0 coins