As Americans grapple with rising living costs and a shifting economic landscape, many retirees are reassessing when to begin collecting their Social Security benefits. While conventional wisdom once suggested starting payments as early as age 62, more people are now delaying their claims — even into 2026 — in hopes of securing more substantial long-term payouts. With inflation squeezing budgets and health care expenses climbing, this might seem counterintuitive. Yet, it reveals a strategic change in how future retirees are planning to manage longevity risk and financial uncertainty.
Social Security remains a cornerstone of retirement income for millions, but when to claim it has become a more complex decision. The key reason for the shift is financial: delaying Social Security not only increases the size of monthly payments but also provides a form of protection against outliving other savings. In 2026, trends suggest even more Americans — particularly those with savings cushions or part-time income — will hold off on claiming benefits to maximize lifetime income despite the higher consumer costs.
Key considerations motivating retirees to wait
| Factor | Impact on Delay Decision |
|---|---|
| Inflation | Encourages delaying to lock in higher adjusted payments through COLA |
| Healthcare Costs | Delaying adds financial buffer through higher benefit amounts |
| Longevity Risk | Retirees want stable, inflation-adjusted income that lasts |
| Market Volatility | Leads retirees to rely less on 401(k)/IRAs and more on stable Social Security |
| Working in Retirement | Postponement avoids early claiming penalties and tax issues |
What changed this year
In 2024 and heading into 2026, several factors have reshaped the way Americans approach retirement benefits. Most notably, cost-of-living-adjustments (COLAs) tied to inflation have surged in recent years, significantly affecting monthly Social Security payouts. While that provides a benefit for current claimants, it also amplifies the future value of delaying benefits. Each year someone defers past their full retirement age, their monthly Social Security check increases by about 8% — a guaranteed return difficult to match in other financial instruments.
The 2025 and 2026 financial outlook points to continued inflation pressures, and healthcare costs show no sign of lowering. For those still generating income through part-time work or drawing from other retirement assets, waiting to claim Social Security means locking in a much higher baseline benefit that will also reflect stronger COLAs.
Who qualifies and why it matters
Any American worker eligible for Social Security may choose to delay claiming retirement benefits up to age 70. While full retirement age (FRA) varies with birth year—67 for those born in 1960 or later—individuals can start benefits as early as 62 or delay up to 70. However, monthly benefits increase each month someone delays past their FRA due to delayed retirement credits. This makes the strategy particularly valuable for individuals with longer life expectancies, good health, or spousal benefit coordination plans.
Delaying isn’t for everyone. People with limited savings, poor health, or shorter life expectancy may choose to claim earlier. However, for seniors who can wait—even until 2026—the long-term financial reward may be enough to outweigh short-term lifestyle constraints.
Delaying Social Security is essentially buying lifetime inflation-protected income. For many retirees, that’s the best insurance policy they can get against outliving their assets.
— Jane Robertson, Certified Retirement Financial PlannerAlso Read
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Maximizing benefits through delay
Every year a retiree waits to collect Social Security after their FRA, their monthly check grows by around 8%, up to age 70. That can translate to a 24%–32% increase in benefits when compared to claiming at full retirement age. Over the span of retirement, particularly for those who live into their 80s and 90s, this can amount to tens or even hundreds of thousands of extra dollars.
In 2026, the projected benefits for individuals who delay to age 70 may be even larger due to new COLA adjustments applied at those higher benefit levels. While it requires planning and potentially tapping other resources, the long-term upside for those in strong financial and health positions is clear.
Biggest winners and those who may not benefit
| Winners | Losers |
|---|---|
| Healthy retirees expecting long lifespans | Retirees with chronic health issues |
| Married couples coordinating spousal benefits | Individuals with no other retirement income |
| Workers earning income into late 60s | Those needing cash flow immediately at 62 |
| High earners facing marginal tax issues | People uncertain about future program changes |
Common concerns about delaying benefits
Despite the financial benefits, many retirees hesitate to delay Social Security due to emotional or practical concerns. One of the biggest worries is the uncertainty around longevity—what if someone delays and then passes away earlier than expected? Others fear legislative reform could alter the system mid-retirement. Factually, however, Social Security has remained relatively stable, and delayed retirement credits have been part of the system since 1977.
For others, the issue is more cash flow-based. Without pensions or large 401(k) balances, waiting to claim can seem impossible. In such cases, some advisors suggest partial retirement or “bridge strategies” where retirees use short-term resources to delay claims while still preserving assets.
There’s a psychological hurdle around letting go of ‘what if I don’t live long enough?’ But when you look at averages and retirement length, the math usually favors waiting if you can afford it.
— Thomas Chao, Retirement Policy Analyst
Alternatives and supplemental strategies
For those uncertain about delaying Social Security, there are intermediate strategies. One approach is to claim spousal benefits while letting personal benefits grow. Another is to use Roth IRA withdrawals to supply income during the delay period, avoiding taxes and preserving Social Security gains. Certain annuities or part-time work can also help bridge the gap.
Financial planners increasingly use software and modeling tools to identify the breakeven point — the age at which delaying benefits produces greater total income. This data-driven approach gives many retirees confidence in their decision-making, especially when evaluating different retirement timelines heading toward 2026.
Why 2026 decisions require more careful planning
With high inflation and possible legislative shifts on the horizon, many nearing retirement are using 2026 as a milestone year for deeper planning. For some, it’s an opportunity to delay a few more years and build a higher guaranteed income base. For others, it could be the year they finally trigger benefits after a strategic wait.
Keen awareness of taxation, Medicare premium brackets, and potential benefit taxes also plays a vital role. Retirees who delay benefits can better manage provisional income and avoid crossing income thresholds that result in paying taxes on Social Security benefits. Strategic timing in 2026 could create thousands in lifetime tax savings.
2026 might be the sweet spot for delaying due to compound COLA effects and the flexibility retirees still have today. After that, reforms may force different rules.
— Alan Menna, Senior Retirement Strategist
Short FAQs on delaying Social Security
Is waiting until age 70 always better?
Not always. While benefits are higher, it depends on life expectancy, financial needs, and overall retirement goals. Some retirees are better off claiming earlier, especially if in poor health.
Does delaying affect spousal benefits?
Yes. Delaying can increase survivor benefits and allows better optimization when one spouse waits while the other claims earlier.
What if Social Security changes in the future?
While reforms may occur, most proposed changes protect current or near-retirees. Delaying is still seen as a secure financial strategy for now.
Can I go back and change my claim decision?
Yes, but only within the first 12 months of claiming, and only if you repay the benefits received. After that, changes are limited.
Will my benefits grow with inflation?
Yes. Once you claim, benefits are adjusted annually with COLA. Delaying means a higher base figure that receives these increases.
Can I work while delaying benefits?
Yes, and that’s a common strategy. Working allows you to supplement income while increasing your future Social Security payouts.
Is it worth using savings to delay benefits?
In many cases, yes—especially if the savings used produce less income than the 8% return from delayed benefits.
Should I consult a financial planner before making this decision?
Absolutely. Social Security timing can affect taxes, Medicare, and estate planning. A professional can help optimize your strategy.
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