Delay Benefits Until Age 70 for Maximum Monthly Income
Key stat: 8% annual increase
Each year you delay Social Security after FRA up to age 70, you earn delayed retirement credits worth 8% more per year.
- Maximizes monthly income for life
- Great hedge against longevity risk
- Requires other income sources during the delay
- Break-even point can be 12+ years out
Who Needs It: Healthy individuals with long life expectancies and other income streams
Who Doesn’t: Those with poor health, no other income, or below-average life expectancy
Also Consider: A Fixed Index Annuity with GLWB to provide income while delaying Social Security
Use Bridge Income to Wait on Social Security
Key stat: Fill income gap until age 70
Want to delay Social Security but need income now? First calculate how much you need each month and how long the gap will last. Then compare ways to fund the wait until Social Security. Cash, a CD or Treasury ladder, eligible account withdrawals, and selected annuity strategies have different access and tax costs. Contact The Annuity Expert for a free, no-obligation comparison of any annuity options that fit your timeline.
- Keeps Social Security growing while meeting income needs
- Spreads tax burden more evenly
- Depletes retirement accounts sooner
- May trigger higher tax brackets if not planned well
Who Needs It: Retirees with large pre-tax retirement accounts or annuity income
Who Doesn’t: Those without significant savings
Helpful Add-on: MYGA or period certain annuity for predictable bridge income
Coordinate Delayed Benefits With Spousal Strategies
Key stat: Spousal benefits max out at full retirement age—not 70
You can delay your own benefit while your spouse takes theirs or a spousal benefit earlier.
- Increases total household income over time
- Protects surviving spouse with higher survivor benefit
- Complex rules on eligibility and timing
- Doesn’t benefit both spouses equally
Who Needs It: Married couples with different earnings records
Who Doesn’t: Single individuals
Also Consider: Joint life annuity to cover both lives alongside Social Security
Reduce Longevity Risk With a QLAC + Delayed Social Security
Key stat: QLAC income can start as late as age 85
A Qualified Longevity Annuity Contract pays later in life, complementing Social Security for long-term security.
- Ensures lifetime income after age 70
- Can defer RMDs from retirement accounts
- Ties up retirement savings
- No liquidity
Who Needs It: Risk-averse retirees with large IRAs
Who Doesn’t: Those with minimal retirement assets
Helpful Add-on: Use QLAC to push back taxable income and delay withdrawals further
Use Delayed Credits to Fund Inflation Protection
Key stat: Social Security includes COLA increases
Waiting means your benefit is not only higher, but future cost-of-living adjustments (COLAs) apply to a larger base.
- Benefits keep pace better with inflation
- Automatic protection without needing to invest
- Doesn’t fully match true inflation over time
- Can be offset by higher Medicare premiums
Who Needs It: Those concerned about rising expenses in retirement
Who Doesn’t: Retirees already drawing a COLA-adjusted pension
Also Consider: IUL or fixed index annuities for inflation-linked growth potential
Delay to Minimize Taxes on Other Retirement Income
Key stat: Up to 85% of Social Security is taxable
Delaying may reduce the years Social Security overlaps with high taxable distributions or Roth conversions.
- Helps manage retirement tax brackets
- Enables more efficient Roth conversions
- Requires careful planning
- Delayed benefits are still eventually taxed
Who Needs It: High-income retirees looking for tax efficiency
Who Doesn’t: Those with only Social Security as income
Helpful Tool: Roth IRA laddering or Deferred Annuities to control when income is taxed
Combine Delayed Benefits With Annuities for Guaranteed Lifetime Income
Key stat: GLWB riders pay 5–8% for life
Pairing delayed Social Security with an annuity offering a Guaranteed Lifetime Withdrawal Benefit (GLWB) creates two guaranteed income streams.
- Higher income than the 4% rule
- Guaranteed for life, even after the annuity is depleted
- Annuity fees vary by contract
- Must choose contracts carefully
Who Needs It: Anyone seeking to avoid running out of money
Who Doesn’t: People comfortable self-managing their withdrawals
Also Consider: Using the GLWB calculator to compare annuity payouts with delayed Social Security
Contact The Annuity Expert
If you’re deciding whether to delay your Social Security or need a way to fund the gap until age 70, contact The Annuity Expert for free quotes and comparisons on annuities, income strategies, and life insurance. We’ll help you find the best way to turn delayed retirement credits into a guaranteed income plan.
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