Social Security Benefits: Delayed Retirement Credits

Hey Marc! – We have a client who called SSA. My primary question is how could the client be getting the exact same amount of Benefit if he files in November compared to filing at FRA this past July. To me it doesn’t make sense but she swears she called three times. Three SSA representatives, and they all said the same thing. Why isn’t the benefit increasing for Delayed Retirement Credits.

Answer – DRC’s are not added to a persons benefit until after the year they are earned. His full retirement age is reached July 2021. If he takes benefits in July he will receive his full retirement age benefit with no DRC’s. If he files effective November the payments he receives for November and December will not include any DRC’s so it is the same amount as if he took benefits in July. However, in January he will receive the 4 months DRC increase (2.67%) added to his benefit. He eventually gets the increase but not until the year he earned the credits ended. DRCs earned in year of beginning benefits are credited to record in January of the following year. Exceptions is beginning at age 70. In this situation recipient will receive all of DRCs when benefits begin.