Will delaying Social Security from 65 to 66 increase my benefit amount with no income that year?
Getting ready to retire next January (2025) when I hit 65, but I've been reading about delayed retirement credits. My plan is to live off my 401k for a year and not work at all, then start collecting Social Security when I turn 66. When I check my mySocialSecurity account, it shows my estimated benefit amount at different ages. My question is: if I'm not earning any income during that delay year, will my benefit amount still increase like the grid shows? Or does the increase only happen if you're still working and paying into the system during the delay? I don't want to wait a year for nothing if my benefit won't actually go up without new earnings. Thanks for any help understanding this!
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Ayla Kumar
Yes, your SS benefit will still increase even with no income during that delay year. The increase comes from Delayed Retirement Credits (DRCs), which are given regardless of whether you're working or not. You earn 2/3 of 1% for each month you delay after FRA (which is actually 66 and 4 months for someone turning 65 in 2025). So even without working, your benefit will grow during that delay period.
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Clay blendedgen
•That's a huge relief! So I'll still get the increase shown on my SS statement even if I'm just sitting at home watching TV all year? It sounds almost too good to be true.
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Lorenzo McCormick
Are you sure 65 isnt your FRA? Cause if your actually born in 1960 or later your FRA is 67. So stopping at 65 is actually early retirement. The website calculator should tell you your personal FRA date. Just want to make sure your not confusing early vs delayed credits!
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Ayla Kumar
•Good point about checking FRA. For someone turning 65 in 2025, they were born in 1960, which means their Full Retirement Age is indeed 67, not 65 or 66. So delaying from 65 to 66 isn't earning delayed credits but rather reducing the early retirement reduction. Still beneficial but works differently.
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Carmella Popescu
The previous answers are partially correct, but let me clarify something important. If you were born in 1960 and will be 65 in 2025, your Full Retirement Age (FRA) is actually 67, not 66. So when you delay from 65 to 66, you're not earning Delayed Retirement Credits yet - you're just reducing the early retirement reduction penalty. If you claim at 65, you'll get about 86.7% of your full benefit amount. If you claim at 66, you'll get about 93.3% of your full benefit amount. So yes, waiting that year will increase your monthly benefit by about 7.5% even with zero earnings. This happens because you're getting closer to your FRA, not because of delayed credits (which only start after FRA).
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Clay blendedgen
•Thank you for explaining! I honestly didn't realize my FRA was 67. So I'll still get about 7.5% more by waiting from 65 to 66, but I won't get the full amount until 67? And the real delayed credits only start after 67? This is helping me rethink my strategy.
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Kai Santiago
I went thru EXACT same thing last year!! Was planning to retire at 65 but decided to wait cuz of the money increase. The SS website was so confusing to me - had no idea if the numbers were based on me working or not. Called SS about 5 times, got disconnected 4 times after waiting HOURS. Finally got thru to someone who explained that YES you get more $ even if you don't work during that time!! I finally retired at 66.5 and my check is $267 more per month than if I'd taken it at 65. ZERO work that last 18 months!!! Worth waiting IMO.
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Lim Wong
•Wow, $267 more per month just for waiting! That's over $3,200 a year for doing nothing. When you think about it, that's a pretty good return on investment! Did you have to tap into savings while waiting?
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Dananyl Lear
My father in law did this EXACT thing back in 2021 and regrets it BIG TIME. He waited a year but then got really sick. Now he feels like he lost out on 12 checks (about $20k) that he'll never get back. Just something to consider - the break even point is usually around 10-12 years. If you don't think you'll live that long after 66, might be better to just take it at 65. Also make sure you sign up for Medicare at 65 regardless!!! Thats separate from SS benefits and has penalties if you miss the window.
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Clay blendedgen
•I'm sorry about your father-in-law. That's definitely something I worry about too. And thanks for the Medicare reminder - I've already got that paperwork ready to go for my 65th birthday!
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Noah huntAce420
Hey tried calling SS last week about this EXACT question for my own situation!!! Was on hold for 2 HOURS and then got disconnected!!! So frustrating!!!
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Kai Santiago
•You should try Claimyr.com - it's this service that connects you with a Social Security agent without the crazy wait times. I was skeptical but it worked great when I needed to talk to someone about my retirement application status. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. Totally worth it when you need answers directly from SSA and can't waste entire days on hold.
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Lorenzo McCormick
Also dont forget bout taxes!! if ur 401k is traditional (not roth) and ur taking enough out to live on for a year, thatll be taxable income. might end up paying more in taxes that year than what u gain from waiting!
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Carmella Popescu
•This is actually an important point. If you're withdrawing substantially from a traditional 401(k) during that gap year, consider the tax implications. You might want to consult with a financial advisor to determine if the increased benefit outweighs the potential tax impact of concentrated 401(k) withdrawals in a single year.
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Lim Wong
You guys are all confusing me more!!! So is it better to take SS at 65 or wait?? I'm in the same situation retiring next year and now I don't know what to do!!!
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Ayla Kumar
•There's no one-size-fits-all answer. Delaying will mathematically increase your benefit (about 7-8% for each year you delay until FRA, then 8% per year after FRA until 70). Whether that's "better" depends on your health, other income sources, expected longevity, and immediate cash needs. The break-even point is typically around age 80 - if you expect to live beyond that, delaying often makes financial sense.
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Clay blendedgen
I want to thank everyone for their helpful responses! I've learned that my FRA is actually 67, not 66 like I thought. So waiting from 65 to 66 reduces my early retirement penalty but isn't actually delayed credits yet. I still get about 7.5% more monthly benefit even without working, which sounds worth it to me. And I'll definitely remember to sign up for Medicare at 65 regardless of when I take SS benefits. This has been incredibly helpful for my retirement planning!
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