What does the 'Age-66 Delayed Retirement Credit' imply for retirees?

The 'Age-66 Delayed Retirement Credit' refers to the benefits system established by Social Security in which retirees can increase their monthly retirement benefits by delaying their claim for Social Security past their full retirement age, which for many is 66. By postponing retirement benefits, individuals can earn additional credits that result in a higher monthly payout when they do eventually start receiving benefits.

Choosing to delay retirement benefits past the full retirement age allows retirees to receive an increased benefit amount once they begin collecting Social Security. The credit increases the benefit by a certain percentage for each year the retiree postpones retirement up until age 70. This financial incentive encourages individuals to stay in the workforce longer or to utilize other sources of income rather than relying solely on Social Security, which can significantly enhance their overall retirement security.

In contrast, other options touch on scenarios that do not capture the essence of the delayed retirement credits and their function, such as decreases in benefits, no effect on benefits, or restrictions based on being under a specific age.