Is there any benefit in crossing the Social Security FRA threshold?

[flyoverstate]

In researching my personal answer to the eternal "When should I take SS?" question, the age I am currently looking at is 66 years, eight months. Other than the tiny increase from waiting four additional months to get to my FRA, which is 67, is there any significance to making it to FRA?

 

[Kabowest]

You'd be getting 100% of your benefit. The four extra months would be around an additional 2.25%.

 

[Focus]

As it happens, I just viewed this related video:

 

[Al18]

Insignificant in my opinion - especially if plan to start collecting the end of the year. The COLA will bump your check 2.8% - even if you start receiving your benefit in December.

 

[Koolau]

What seems to come out of these discussions is usually along the lines of:

Do you need the money? If so, take SS as soon as you need the money.

Some believe they can put off accessing their invested assets by taking SS early. I consider that a potential "wash" but understand some people do not.

If you don't need the money, waiting (to - pick the time) may increase your survivor's benefit.

If you believe you will die early, by all means take SS as soon as possible.

I'm sure I've forgotten some others.

 

[pb4uski]

In researching my personal answer to the eternal "When should I take SS?" question, the age I am currently looking at is 66 years, eight months. Other than the tiny increase from waiting four additional months to get to my FRA, which is 67, is there any significance to making it to FRA?

Nope.

 

[bada bing]

The deferral adjustment rate changes from -6.67% of PIA per year of deferral to +8% at FRA

The earnings limit test ends at FRA. So if you still have earned income above the limit, there is that.

If you will be drawing Spousal benefits as part of your total benefit, there is no additional bump up for deferral past your FRA on your Spousal component.

 

[Exchme]

Possible reasons to keep deferring:
*If you can make profitable Roth Conversions, then deferring and using the low tax space for conversions can be a winner.
*If married, the larger earner should often defer to age 70 as the larger benefit continues after the first spouse passes.
*If you would ever buying consider an annuity, maximizing SS is the best one as it is inflation adjusted.
*If your genetics, current health and behaviors indicate substantially longer than average life span.