Delaying Social Security benefits past full retirement age offers an 8% annual increase, surpassing returns from 10-year Treasuries and certificates of deposit.
Filing for Social Security at age 62 instead of full retirement age (FRA) reduces monthly benefits by about 30%, a permanent cut to future payments. Delaying benefits past FRA delivers an 8% annual increase, adjusted for inflation, backed by the U.S. government. This return exceeds current yields on 10-year Treasuries at 5% and certificates of deposit at 2%.
The decision to delay hinges on career moves and financial stability. A median 401(k) balance of $247,000 may force early claiming if a career shift fails, locking in lower lifetime benefits. The trade-off highlights the financial risks of leaving stable employment in late career stages.
The scenario reflects broader retirement planning challenges, where workers in their early 60s weigh job changes against long-term income security. The FedEx CEO’s career trajectory, as reported on July 17, 2026, underscores the role of opportunity in extending earnings and deferring benefits.