Which statement about delaying retirement is incorrect?

Delaying retirement can significantly affect Social Security benefits in a positive way. When a person chooses to delay retirement past their full retirement age, their benefits increase. This increase occurs because of a program called delayed retirement credits, which adds a certain percentage to the benefit amount for each year the retirement is delayed, up until age 70.

The statement regarding the reduction of benefits as retirement is delayed is incorrect because, in fact, benefits are designed to grow the longer an individual postpones claiming them. This growth in benefits incentivizes individuals to work longer and can lead to a more secure financial future in retirement.

Additionally, earned credits do not decrease as one delays benefits; rather, they can potentially increase based on the individual’s work history and the decision to continue working while delaying retirement. Therefore, statements about increases in benefits with delayed retirement and higher monthly benefits are accurate, while the notion of reductions as retirement is delayed is fundamentally mistaken.