Beneficiaries of Social Security will see an increase of 8.7% to their benefits for 2023, which is the most significant adjustment in 40 years. However, experts advise that those nearing the retirement benefit eligibility age of 62 should wait to claim their benefits rather than doing so to take advantage of the cost-of-living adjustment.
In this CNBC article, Covisum's Founder and President Joe Elsasser, CFP® said, “Don’t feel like you’re going to miss it if you don’t claim now.”
Claiming Social Security retirement benefits at age 62 will reduce monthly payments. Waiting until full retirement age, which ranges from 66 to 67 depending on birth year, will allow you to receive the full benefits you have earned. Delaying claiming until age 70 can result in an additional 8% increase for each year past the full retirement age. The cost-of-living adjustment, or COLA, increases the primary insurance amount, or the benefit at full retirement age, each calendar year after age 62. Even if benefits have not been claimed yet, those who are 63 this year will still receive the 8.7% COLA increase. Additionally, waiting to claim benefits will result in higher payments as the reduction for early claiming decreases.
Read the CNBC article in its entirety.