Let's say my SS full retirement age is 66. Do I have to still be working between age 66 and 70 in order to receive the 8%/year increase in benefits through Delayed Retirement Credits? My thought is that I don't have to be working while delaying and that the mere delay of the benefits (e.g., potentially less time to collect benefits) is what would make it actuarially equivalent. I posed this to the SSA in verbally and via email. Verbally I was told I must be working during age 66 -70 to get the increase. The response to my email did not state anything meaningful - it just recited pat answers. Would appreciate learning the real answer. Thank you.

Hi,

No, you do not have to be working in order to receive delayed retirement credits between full retirement age and age 70. The 8% per year credit is simply a bonus for deferring receipt of your retirement benefits beyond full retirement age.

However, if you do keep working between ages 66 & 70, you may also increase your benefit amount in another manner. Social Security retirement benefits are based on an average of a person's best 35 years of inflation adjusted earnings, and can be recalculated after any year in which you earn more than one of the 35 previous best earnings years. Any benefit increases resulting from such a recalculation could then be further increased by delayed retirement credits. Sort of a double bonus, in other words.

Best, Jerry