This Social Security Strategy Could Boost Your Monthly Check
When lawmakers talk about how to change the filing age for retirement, many people tune out. But these changes could have a ripple effect on your Social Security income and retirement security.
As new proposals move forward and the full retirement age inches upward, it’s worth seeing how a change to your filing age may affect your overall benefits.
Impact of Filing Age Change on Benefits
One of the most direct effects will be on the size of your monthly checks. Under the current scheme, if you claim Social Security before your full retirement age (FRA), your benefit will be permanently reduced.
On the other hand, if you delay past your FRA, you’ll accrue delayed retirement credits that will raise your monthly payment.
A reform that pushes the full retirement age upward will shift that balance. Doing so will lower your monthly checks if you file early, and the accelerated filing age impact could make those reductions even greater than before.
Your penalty could also be steeper because the baseline for your full benefit against which the reductions are measured will also be higher.
At the same time, delaying benefits, or waiting beyond FRA, will most likely yield significantly higher monthly amounts.
In recent years, people who delay from 62 to 70 have gained several hundred dollars per month in extra benefits. But, under a new reform, the sweet spot for waiting will probably shift, i.e., the premium for delay will also be adjusted.
In other words, a change to your filing age for retirement changes both the downside if you file early and the upside if you wait.
Why Social Security Filing Age Reform Is Back in the News
The Social Security trust funds are likely to face an imbalance in the coming decades. So, reformers are proposing tweaks again to benefit the formulas and eligibility ages.
Some proposals could reduce the benefits for new beneficiaries, or gradually raise the full retirement age even further. Others could target higher earners or alter how much their benefits increase when they delay filing.
Because these proposals are under serious discussion in 2025, many people who thought their claiming decision was locked in may find out that the rules shifted right under their feet. That makes it more important than ever to understand what these reforms may mean.
How to Think Through Delayed Retirement Benefits vs Early Claiming
Let’s break down some trade-offs:
Delayed Retirement Benefits: The later you claim (right now, up to age 70), the greater your monthly payment. That extra cushion may matter a lot, especially if you live into your 80s or 90s.
Early Claiming Risk: Claiming before FRA means your payments will be reduced, sometimes significantly. Under a reform scenario, that reduction may be even more significant.
Lifetime Balance: Social Security is designed so that, in theory, your total lifetime benefits are somewhat comparable, whether you claim early or file late. If you live much longer than the average person, the delay tends to make sense. If you don’t, however, filing early could result in more money overall.
Withdrawal or Suspension Options: If you claim early and regret it, there’s a short window of time when you can withdraw your application and refile later. Once you reach FRA, you can also suspend your benefits temporarily and restart them later to receive higher payments. Both strategies have caveats, and not everyone qualifies.
Health, Life Expectancy, and Finances: Your personal situation matters the most. If you have reason to believe you may not live a long life, filing early has more benefits. If you’re healthy and expect longevity, then delayed benefits might make more sense.
Under a new reform that could change the filing ages, all of these calculations will change. The incentive to delay might be more rewarding if the premium for the delay is high. Meanwhile, the penalty for early claiming might also become more severe.
Preparing for Retirement Benefit Reduction
Here are some practical steps you can take:
Revisit Your Social Security Claiming Plan: If you were already planning to file around your FRA, see how a shift in filing age for retirement would change your outcomes.
Model Different Scenarios: Do the calculations for filing at 62, FRA, and 70 under the current rules and the possible revised ones.
Create Flexibility: Build that number into your retirement income plans with savings, IRAs, or 401(k) accounts, so your Social Security timing isn’t your only lever.
Stay Informed: Keep up with the latest proposals about the potential Social Security filing age reform in 2025. Some changes may include notice periods or grandfathering that affect which rules apply to you.
Looking Ahead at Retirement Security
Ultimately, when policymakers consider changes, one of their key levers is to change the filing age for retirement. That adjustment can shift how much your monthly checks cost you if you file early, and how much you stand to gain if you wait.
Any reform in 2025 and beyond will add new complexity to retirement planning. By staying informed, considering multiple scenarios, and building flexibility into your income plan, you can protect your retirement security, no matter how the rules evolve.