Do Social Security Benefits Really Increase by 8 Percent a Year?

When talking with clients, I often hear the comment that their Social Security benefits will increase by 8 percent if they delay claiming a year. This statement is true only in one instance: claiming at 67 rather than at 66 increases one’s retirement benefits by exactly 8 percent. (Note: the following applies to those with a full retirement age of 66.)

The actual year-over-year percentage gain for ages 62 to 70 are shown in the following table. Those gains range from 6.5 percent (claiming at 70 rather than 69) to 8.4% percent (claiming at 64 rather than 63).

The confusion arises from the fact that after one reaches age 66, their retirement benefits will increase by 8 percent of their age-66 benefit for each year one delays. But, this is a very different thing from an annual percentage increase.

Claiming Age Gain from Preceding Year
62 na 
63 6.7%
64 8.4%
65 7.6%
66 7.2%
67 8.0%
68 7.4%
69 6.9%
70 6.5%

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