You’ve likely heard financial experts tout the wisdom of delaying retirement. A few extra years of working can deliver higher Social Security income and a fatter savings balance. But the real question is, what’s the dollar value of those outcomes?
If you’re at all worried about making ends meet once your paycheck goes away, you should know how to estimate the value of postponing your retirement. As you’ll see below, the average worker could increase retirement income by $9,500 a year, simply by working an extra five years. And you might have an even greater opportunity available to you.
You can claim Social Security as early as age 62. That’s not the best option financially, though. The earlier you claim, the lower your benefit. You only qualify for your full benefit as calculated from your earnings history when you reach Full Retirement Age, or FRA. Your FRA is based on your birth year. For anyone born after 1942, FRA is at least 66 years old, but could be as high as 67.