Will I Get Delayed Retirement Credits Even If I'm Receving Benefits?

Dec 4 2016 - 10:30am

IF I AM 66 YEARS OLD AND STILL WORKING FULL TIME AND ALSO GETTING MY SOCIAL SECURITY, WILL I BE ELIGIBLE FOR THE 8% WHEN I GET 67,68 YEARS OLD AND STILL WORKING.

Hi,

No, if you're receiving retirement benefits on your own record, you won't get the 8% per year increase resulting from delayed retirement credits (DRC). DRC increases are only accrued for months of non-payment between full retirement age and age 70.

In some cases, a person can accrue delayed retirement credits on their own account while receiving benefits on someone else's Social Security record (e.g. spousal, widow(er)). However, if you're receiving retirement benefits on your own record, you would need to voluntarily suspend your benefits in order to earn DRCs.

Since you are working, your benefit rate may increase due to your additional earnings, though. Social Security retirement benefits are calculated based on a person's best 35 years of inflation adjusted earnings (https://www.ssa.gov/pubs/EN-05-10070.pdf). So, if your current earnings are higher than any of the years currently being used to calculate your benefit amount, you should see at least some increase in your future benefit rate.

Best, Jerry