Social Security retirement benefits are increased by a certain percentage for each month you delay starting your benefits beyond full retirement age.
The benefit increase stops when you reach age 70.
Increase for Delayed Retirement
| Year of Birth* | 12-Month Rate of Increase | Monthly Rate of Increase |
|---|---|---|
| 1933-1934 | 5.5% | 11/24 of 1% |
| 1935-1936 | 6.0% | 1/2 of 1% |
| 1937-1938 | 6.5% | 13/24 of 1% |
| 1939-1940 | 7.0% | 7/12 of 1% |
| 1941-1942 | 7.5% | 5/8 of 1% |
| 1943 or later | 8.0% | 2/3 of 1% |
If you've already reached full retirement age, you can choose to start receiving benefits before the month you apply. However, we cannot pay retroactive benefits for any month before you reached full retirement age or more than six months in the past.
If you decide to delay your retirement, be sure to sign up for just Medicare at age 65.
If you do not sign up at age 65, in some circ*mstances your Medicare coverage may be delayed and cost more.
If you retire before age 70, some of your delayed retirement credits will not be applied until the January after you start receiving benefits.
For example, if you reach your full retirement age (67) in June, you may plan to wait until your 69th birthday to start your retirement benefits. Your initial benefit amount will reflect delayed retirement credits earned from your full retirement age through the year before your 69th birthday. In January of the following calendar year, your benefit will increase for the credits earned in the year of your 69th birthday. Our Online Calculator gives you an estimate with all credits applied for comparison purposes.
Additional Information
Choosing when to begin your retirement benefits is an important and personal decision. No matter your age, be sure to explore our website to learn your choices and make the best decision. Sometimes, the month you choose to start benefits could mean higher benefit payments for you and your family. Here's some additional information that may help you decide what's right for you:
As a seasoned expert in Social Security retirement benefits, I bring forth a wealth of knowledge to guide you through the intricacies of optimizing your retirement strategy. My expertise is not only theoretical but is grounded in a comprehensive understanding of the intricate details that govern the Social Security system.
Let's delve into the concepts embedded in the article you provided, shedding light on the key aspects of Social Security retirement benefits and the decision-making process:
Delayed Retirement Credits (DRC):
The article emphasizes that Social Security retirement benefits increase by a specific percentage for each month you delay starting your benefits beyond full retirement age. This increase is known as Delayed Retirement Credits (DRC). The DRC ceases at age 70, indicating that waiting beyond this point does not result in additional benefit increases.
Rates of Increase Based on Birth Year:
The rates of increase for delayed retirement vary depending on the year of birth. For instance, those born in 1933-1934 experience a 5.5% increase, while individuals born in 1943 or later receive an 8.0% increase. The article provides a detailed breakdown of these rates for various birth years.
Monthly Rate of Increase:
To offer a granular understanding, the article breaks down the rate of increase into monthly increments. For example, the 1933-1934 cohort sees an increase of 11/24 of 1% per month, highlighting the precision in the calculation of these adjustments.
Retroactive Benefits:
The article clarifies that retroactive benefits are not payable for months before reaching full retirement age or more than six months in the past. This emphasizes the importance of planning and applying for benefits in a timely manner.
Medicare Enrollment:
An essential piece of advice is provided for those who decide to delay retirement: sign up for Medicare at age 65 to avoid potential coverage delays and increased costs. Failing to enroll at the right time may have implications for your healthcare coverage.
Timing of Credit Application:
If you retire before age 70, the article explains that some delayed retirement credits may not be applied until the January after you start receiving benefits. This temporal aspect is crucial for individuals planning their retirement strategy.
Online Calculator:
The Social Security Administration offers an Online Calculator, allowing individuals to estimate their benefits with all credits applied. This tool serves as a valuable resource for making informed decisions.
Personalized Decision-Making:
The article underscores the importance of choosing when to begin retirement benefits as a personal decision. It encourages individuals of all ages to explore the Social Security website to understand their options thoroughly.
In conclusion, navigating the realm of Social Security retirement benefits requires a nuanced understanding of concepts such as Delayed Retirement Credits, rates of increase, enrollment timelines, and the impact of timing on benefit amounts. By considering these factors, individuals can make informed decisions that align with their financial goals and circ*mstances.
