Social Security penalty for collecting 6 months after Full Retirement Age (67)?

No penalties at all! In fact, you'll get MORE money by waiting those 6 months after your FRA. For each month you delay taking benefits after your Full Retirement Age, you earn Delayed Retirement Credits (DRCs) that increase your benefit by 2/3 of 1% per month, which works out to 8% per year. So waiting 6 months would give you approximately a 4% permanent increase in your monthly benefit amount.Your brother-in-law is probably thinking about the penalties for claiming BEFORE your FRA, which is a completely different scenario. Those who claim early (before FRA) get reduced benefits permanently. But in your case, you're doing the opposite, which is financially beneficial.

Oh thank goodness! That makes so much more sense. So waiting those 6 months will actually INCREASE my monthly payment by about 4% for the rest of my life? That sounds like a no-brainer. I think my brother-in-law must have been thinking about early retirement penalties. Thank you for clearing this up!

just wanted to add that my mom did this exact thing waited like 8 months after her FRA and she gets a bit more each month. she says its def worth it if u can afford to wait!!! the longer u wait the bigger ur check

While waiting does increase your benefit (8% per year), don't wait TOO long. There's no additional benefit for delaying past age 70. So you want to start collecting by then at the latest. The decision to delay should consider factors like your health, financial needs, and how long you expect to live. For some people, taking benefits earlier makes more sense, even with the smaller monthly amount.

That's super helpful additional context, thanks! I'm in good health, both my parents lived into their 90s, and I have enough savings to bridge the gap, so waiting those 6 months seems like a good move for me. I definitely wouldn't wait past 70 though.

NOBODY at SSA tells u this stuff clearly!!! took me MONTHS to figure out when to claim my benefits and the SSA office kept giving me different answers when I called. I finally got through to someone who knew what they were talking about after about 20 calls and hours of waiting on hold. SO FRUSTRATING!!!

If you're having trouble reaching Social Security by phone, you might want to try Claimyr (claimyr.com). I was in the same boat last year when figuring out my spousal benefits. Their service got me through to an actual SSA agent in about 20 minutes instead of the usual hours of hold time or getting disconnected. They have a video that shows how it works: https://youtu.be/Z-BRbJw3puU. Saved me a ton of frustration when I needed to confirm some details about my benefit calculation that the website couldn't answer.

OMG never heard of this but definitely bookmarking for next time! I spent literal DAYS trying to get someone on the phone last time. Thx for sharing!!

Your brother in law is confused. Penalties only happen when you claim BEFORE full retirement age, not after. After FRA you get bonus money!

I'm turning 67 next month and I've been researching this exact question. Everything I read says that you actually BENEFIT from waiting after FRA. Your monthly payment increases by 8% per year (or 2/3% per month) until age 70. My question though is - what happens to those 6 months of payments you didn't receive? Are they just gone forever? That's what I'm struggling with in my decision.

Good question. Those months of payments you didn't collect are essentially traded for a permanently higher monthly benefit for the rest of your life. Whether this is advantageous depends on your

That makes so much sense! I hadn't thought about the break-even calculation. I'm in good health so waiting seems like the smart move. Thanks for explaining!

My uncle waited till he was 70 to start collecting and now gets like $600 more per month than his friend who started at 62!!!! But then again his friend has been collecting for 8 years already so idk who comes out ahead in the end lol

That's a really good point - it's not just about the monthly amount but the total you collect over your lifetime. Makes me feel better about my 6-month delay, which seems like a reasonable middle ground.

To add some specific numbers to this discussion: If your PIA (Primary Insurance Amount) at your FRA of 67 would be $2,000, then by waiting 6 months to claim, your monthly benefit would increase to approximately $2,080 (a 4% increase). This increase is permanent and will also affect any future COLAs (Cost of Living Adjustments).If you're married, it could also potentially increase any survivor benefits your spouse might receive if you pass away first. The decision to delay is generally beneficial for those with average or above-average life expectancy and adequate resources to bridge the gap period.

What about the earnings test? Doesnt that come into play here?

The earnings test only applies if you're collecting benefits BEFORE your Full Retirement Age while still working. Once you reach your FRA, the earnings test no longer applies - you can earn any amount without it affecting your Social Security benefits. Since the original poster is planning to claim AFTER their FRA, the earnings test isn't relevant in their situation.